Summary - As promised on the last two Fox community calls, this is a proposal to partner with the ICHI community to create Stable Fox ($oneFOX). You must deposit $FOX tokens to mint $oneFOX, a token valued at $1.
Abstract - $oneFOX will be the 7th ICHI V2 stable asset, following stable assets created for Filecoin, 1INCH, Uniswap, etc. It never made sense for different communities to govern the different features of money. ICHI makes it possible for every community to have their own everyday currency backed by their scarce crypto.
Motivation - More value will be retained within the Fox economy. Instead of selling $FOX tokens for assets issued by other communities, Fox can use its own asset to conduct business or create dollar-denominated exposure/loans in decentralized finance.
ICHI (conditional on a successful ICHI DAO vote):
- Launches $oneFOX
- Provides 67k ICHI in rewards to $oneFOX deposits over 3 months ($320k value)
Fox DAO (conditional on this vote and a successful deployment of $oneFOX):
- Funds 50% of the cost of initial ICHI rewards ($160k). ICHI will use this entire amount to mint $oneFOX and hold it for a minimum of 12 months, increasing safety and enabling initial DeFi insurance.
- Loans 1.5M $Fox tokens to the $oneFOX treasury to lower initial minting ratio from 98% to 80%. Users will deposit an estimated additional 1.5M $FOX tokens in the initial minting period as a result of this loan.
Docs and audits, including one from Quantstamp, are available on ichi.org for those who want a deeper understanding.
Here are a few benefits of Stable Fox to the FOX economy:
- $FOX Use Case: You must deposit $FOX to mint $oneFOX.
- ICHI Rewards: Deposits of $oneFOX will earn ICHI rewards.
- Revenue: 80% of the yield generated by ICHI strategies stays in the $oneFOX treasury which belongs to the Fox community. 10% may be distributed to applications that leverage $oneFOX. 10% goes to staked ICHI (xICHI).
- Protocol Locked Liquidity: The $oneFOX treasury will provide liquidity to $oneFOX and $FOX on exchanges such as Uniswap V3.
- Discounts/Interest: $oneFOX holders can vote to allocate treasury towards providing discounts when spending or better interest when saving.
Drawbacks - The Stable Fox treasury would either need to be topped up with $FOX or rebalance $FOX into $USDC if a severe $FOX price decline causes the treasury reserve ratio to drop beneath 150% (ICHI’s recommended minimum). Mitigation: Yield on Stable Fox treasury assets, $oneFOX minting ratio adjustments, and $oneFOX redemption fees drive over-collateralization. These mitigations make it less likely that the reserve ratio drops beneath 150%.
For - Launch Stable Fox
Against - Do Nothing