# Add Market: FEI

Fei USD (FEI) is a highly scalable and decentralized algorithmic stablecoin that utilizes protocol controlled value (PCV) for peg stabilization, while maintaining highly liquid secondary markets. Users can mint FEI from ETH and other bonding curves, while FEI is redeemable at $1 USD (with a 1% fee) for ETH at the peg price.

FEI is governed by TRIBE holders who manage the PCV, backing FEI with a community-owned reserve.

This proposal serves to add a market for Fei USD (FEI) with the following parameters:
- Interest rate model: same as cDAI, cUSDT, and cTUSD (stablecoin standard)
- Collateral factor: 0% (standard to start)
- Reserve factor: 25% (standard)
- Borrow limit: none
- COMP rewards: none (for now, pending a broader discussion)
- Price source: Chainlink reporter anchored to [Uniswap V2 FEI/ETH](https://etherscan.io/address/0x94b0a3d511b6ecdb17ebf877278ab030acb0a878)

References:
- [Fei Protocol](https://fei.money/)
- [Etherscan - cFEI](https://etherscan.io/address/0x7713DD9Ca933848F6819F38B8352D9A15EA73F67)
- [Forums discussion](https://www.comp.xyz/t/add-market-fei/2241/)
- [Proposal simulation](https://github.com/TylerEther/compound-protocol/blob/add-market-fei/spec/sim/1001-add-market-fei/hypothetical_proposal.sim)

Proposer disclaimers, affiliations, and transparency:
- FEI and TRIBE held over the past 90 days: none
- Compensation for this proposal: none
- Affiliation to FEI/TRIBE: none