Stablecoins fall into three broad categories: fiat-collateralized, crypto-collateralized, and non-collateralized. Fiat-collateralized stablecoins, such as USDC and USDT, are issued by centralized entities.
These custodians escrow USD and issue the stablecoin on-chain. Although these stablecoins have their advantages, there are always risks that the centralized authority issuing fiat-collateralized stablecoins is not fully collateralizing them.
FEI used a new mechanism through decentralization to solve the issues with fiat-collateralized stablecoins due to their permissionless nature. The mechanism, which is a direct incentive stablecoin is one in which both the trading activity and usage of the stablecoin are incentivized, where rewards and penalties drive the price towards the peg.
This would include at least one incentivized exchange acting as a hub where all other exchanges and secondary markets can arbitrage with the incentivized exchanges. It then helps maintain the peg throughout the ecosystem. The direct incentive model suffers from similar issues as other non-collateralized stablecoins, it is then combined with Fei Protocol with Protocol Controlled Value.
Together, these mechanism creates a stablecoin that is decentralized, scalable, fair, and, liquid. The key innovation behind the Fei Protocol’s mechanism is the idea of Protocol Controlled Value (PCV), a subset of TVL in which the protocol outright owns the assets with no IOU.
The PCV mechanism opens up new design space for DeFi protocols beyond what user-owned TVL models can do and can influence market conditions in fundamental ways that are not necessarily profit-motivated. The clearest use case of PCV is to have the protocol be a liquidity provider (LP) on an Automated Market Maker (AMM) like Uniswap.
At sufficient volume, the protocol would essentially control the exchange rate of the trading pair. It can then use its PCV to rebalance the price by executing trades against the market and locking or burning excess tokens.
TRIBE is the governance token for the FEI algorithmic stablecoin. Fei is developed to provide new decentralized solutions to the stablecoin market as present stablecoins are either fiat-dependent or crypto-collateralized, making them capital-inefficient.
TRIBE governance is critical to the decentralization of the Fei Protocol as the governance mechanism will fork the Compound DAO, where holders can delegate votes. TRIBE is the governance token controlling the DAO. Through TRIBE, the holders can appoint minter and burner contracts, adjust scale target and allocation rule on bonding curves, adjust incentive time-weight growth rate. TRIBE holders also have the right to vote on adjustments to the FEI stablecoin.
FEI proposes a model similar in design to fractional reserve central banking, where the protocol issues FEI for a subsidized price against ETH at its genesis event and subsequently uses the incurred Ether as a treasury to maintain the peg. TRIBE is the governance token of the DAO controlling the governance of FEI and can be used in governance proposals or swapped for FEI in a UniSwapV2 liquidity pool.
It has two cryptocurrency assets: FEI which is to maintain the peg and TRIBE to even out the events of volatility. FEI is the pegged stablecoin produced by Fei Protocol, following the ERC-20 standard.
Its supply is uncapped and its issuance is controlled by Minter and Burner contracts via bonding curves and trading incentives.
Who Are the Founders of Tribe?
Tribe is founded by a team of Bay Area residents, namely Joey Santoro, Brianna Montgomery, and Sebastian Delgado.
Joey Santoro serves as the Chief Executive Officer of FEI Labs. He had a degree in Computer Science from Duke University and once worked as a developer in Okta Inc. Brian is FEI Labs Business Lead and once worked at ConsenSys blockchain studio. Sebastian has had years of experience in decentralized project development. He graduated from UC Berkeley and once worked at Dharma Labs.
With rich experience in the crypto space, the three co-founders make up the three main pillars of TRIBE and Fei Labs.
What is Tribe (TRIBE) used for?
TRIBE holders have been bestowed the power of voting and can vote on any decision about the development of the Fei. Holders can vote on adding new bonding curves for new tokens or on the Protocol Controlled Value (PCV) allocation for new incoming funding or existing PCV fees.
TRIBE allows holders to earn rewards by holding the stablecoin.
Store of value
The token can retain purchasing power without deteriorating in the future, making it one of the best assets to own.
Medium of Exchange
Tribe can be used to exchange for an equal amount of digital assets, stablecoins, virtual currency, or any cryptocurrency token.
The token allows their token holders and investors to use TRIBE as a form of storage for profits and to also mitigate loss.
Community members get to hold rights in decision-making and can update or remove existing protocols in FEI.
What Makes Tribe (TRIBE) Unique?
Tribe’s unique feature is identified through FEI stablecoin collateralization.
Fei uses the direct mechanism coupled with the concept of product-controlled value (PCV). The Tribe DAO governing the stablecoin issued FEI at a subsidized rate for Ether at its launch to generate a pool of Ether as its treasury and stability is maintained through an incentive system. Through this, if the price of FEI exceeds the peg, arbitrageurs can sell ETH to the Tribe DAO and sell their FEI on Uniswap to generate a profit. And if the price falls below, the incentives take over.
Also, Fei Labs is backed by several VC funds, such as Andreessen Horowitz and Coinbase Ventures.
How Many Tribe (TRIBE) Coins Are There in Circulation?
TRIBE has a total maximum supply of 1 billion and a present circulating supply of TRIBE is 415 million.
How Is the Tribe Network Secured?
Since TRIBE and FEI are both ERC-20 tokens hosted on Ethereum, the platform is governed as DAO where several roles are incorporated. These roles range from being a governor, minter, or burner. All of these are also community-governed
It uses the Proof of Work consensus mechanism that requires miners to mine new Ether and incorporates a set of decentralized nodes that validates transactions and secures the Fei blockchain.
To further strengthen the security, Fei has briefly stopped the trading of the stablecoin to fix a security breach that would have allowed attackers to withdraw a significant portion of ETH from the ETH-FEI Uniswap pool.
How do I buy Tribe (TRIBE)?
Tribe is the governance token for the FEI algorithmic stablecoin devoid of the preceding collateralization module.
TRIBE tokens can be easily purchased by the following steps.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and Buy TRIBE through your trading account.
Which Cryptocurrency Wallet Supports Tribe (TRIBE)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as Tribe (TRIBE). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their TRIBE wallet because it offers a simple and interactive interface, making it easy for people to navigate its system.