Proposal to Expand DAI FiRM Market

FiRM
3

  • Current AMM Fed policy is expansionary and targeting a 55-60% pool balance towards DOLA (depends on A param of LP).

  • So long as DOLA farming strategies remain profitable (given DAI DSR yield, and DBR price), there’s reason to believe that demand will meet supply without the need to increase INV bribe spend. TWG can weigh in here but atm there is no deviation in strategy from current stance regarding INV spend.

  • Hard to estimate a timeline tbh as demand will depend on many factors some of which are hard to predict. One approach would be to scale the supply ceiling gradually (e.g. 5M → 10M → 20M) as demand becomes apparent, however I prefer an approach that allows the Fed Chair to weigh in on such decisions and react to strong demand more rapidly.

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