Tribe seeks to give the stablecoin market a new decentralized alternative. Stablecoins now in use are either fiat-collateralized and therefore centralized, or crypto-collateralized and thus capital-inefficient. Other algorithmic stablecoins are intrinsically unstable due to a lack of liquidity behind the peg, or they concentrate rewards to seigniorage interests. The protocol issues FEI at a subsidized price against ETH during its genesis event and then utilizes the incurred Ether as a treasury to preserve the peg.
The FEI protocol’s Ethereum-based token, Tribe coin, is pegged to a set value of one dollar. The key token that regulates the feI system is the tribe coin. TRIBE is a governance model that focuses on updates and integrations rather than peg maintenance.
This protocol intends to keep a liquid market where its stablecoin, FEI, may trade at a price similar to the ETH/USD rate. Those who belong to the TRIBE can vote on whether new bonding curves for new tokens should be added. They have the ability to change the pricing functions of existing curves. For new incoming funds or current PCV fees, TRIBE users can adjust the Protocol Controlled Value (PCV) allotment.
What is Tribe [TRIBE]?
The Tribe is a DeFi protocol that employs a dual token architecture and has an ETH-backed stablecoin. The FEI is a stablecoin that utilizes Uniswap LP as its financial market and Protocol Controlled Value (PCV) as a stabilizing measure to ensure the FEI is close to the dollar rate.
TRIBE users can receive a portion of DEX transaction costs by contributing to Uniswap’s FEI-TRIBE liquidity pool. This only applies to UniswapV2 liquidity providers, so keep that in mind. Members can receive TRIBEs by staking additional FEI-TRIBE LP tokens in the Fei Protocol staking pool. Staked tokens are not locked. Users can make governance suggestions and vote on them, or they can assign their voting rights to other addresses.
Who Are the Founders of Tribe [TRIBE]?
Tribe is managed as a DAO, which means it is totally decentralized and regulated by its community using smart contracts. The DAO-governed Fei stablecoin was established in March 2021 by a crew of Bay Area citizens, including Joey Santoro, Brianna Montgomery, and Sebastian Delgado. Santoro is the CEO of Fei Labs and worked as a software developer at Okta Inc after graduating from Duke University with a degree in computer science. Montgomery, the project’s business lead, formerly worked at ConsenSys, a blockchain firm, before joining Fei Labs. Delgado worked at Dharma Labs, a DeFi initiative, for more than two years after graduating from UC Berkeley. Fei Labs is supported by a number of venture capital firms, including Andreessen Horowitz.
What Makes Tribe Unique?
The major barrier to developing a truly decentralized stablecoin, according to Fei, is the capital inefficiency of crypto-collateralized stablecoins and the phenomena of “mercenary capital.” The former means that more money must be deployed than can join the system, limiting the development prospects of a crypto-backed stablecoin system by design. Furthermore, currencies like DAI are hampered by the fact that liquidity providers are always on the lookout for the greatest yield, limiting their autonomy.
The notion of product-controlled value is introduced by FEI (PCV). The stablecoin’s ruling Tribe DAO released FEI at a subsidized rate for Ether during its inception to create a treasury pool of Ether. Tribe then used a portion of this ETH to fund an ETH-FEI liquidity pool on Uniswap, allowing traders to trade the stablecoin. Users can purchase FEI from the Tribe DAO, but they cannot sell it back to it; instead, they must sell it on the open market. A system of incentives is used to preserve stability. Savvy investors can benefit by selling ETH to the Tribe DAO and selling their FEI on Uniswap if the value of FEI surpasses the peg.
If the price falls below the peg, the Tribe-installed incentives kick in. In the Uniswap liquidity pool, FEI purchasers earn a refund to recover the peg, while sellers must pay the refund plus an extra penalty to incentivize the peg’s restoration. The more the rebates and penalties, the farther away from the peg the price of FEI has gone, making it very unprofitable for sellers to offer cheap FEI. As a final resort, the tribe can leverage its Ether resources to purchase back FEI and destroy excessive FEI to limit supply.
Where Can You Buy Tribe [TRIBE]?
TRIBE can be exchanged on numerous exchanges. Some of the prominent exchanges are Binance, Mandala Exchange, Huobi Global, Coinbase Exchange, and ZT.
Frequently Asked Questions
What is the total number of Tribe (TRIBE) coins in circulation?
TRIBE has a fixed value of one billion units. TRIBE has an existing supply of 415 million coins.
Is Tribe Secure?
TRIBE is an Ethereum ERC-20 based token. The network is run by a DAO, which includes governor, minter, burner, PCV controller, and guardian functions. All of these are also regulated by the community. ERC-20 is a standard that most new tokens adhere to when they are published on the Ethereum network. One of the most prominent distributed ledgers for DAOs is Ethereum, which is protected by a proof-of-work consensus process that compels miners to mine additional Ether. The Ethereum blockchain is secured and validated via a network of decentralized nodes.
On what factors the price of the TRIBE Network [TRIBE] Depends?
Exchange inflows and outflows, technical and fundamental changes, the news cycle, and the overall economic climate are all variables that impact TRIBE price and market cap.
The number of distinct digital assets and tokens will grow in tandem with the blockchain sector to suit the ever-increasing requirements of blockchain network members. To conclude, purchasing, holding, and exchanging TRIBE tokens is a fairly easy procedure. Furthermore, the market analysis predicts that the token’s future value will be stable. Trade with confidence, but also with caution.
Tribe Official website – https://fei.money/
Tribe Twitter – https://twitter.com/feiprotocol
Tribe Medium – https://medium.com/fei-protocol/