Tribe working group: PCV management

Hey fellow Triberians!

I hereby propose to create a Tribe working group 10 for PCV management. It was created by @pavel. If you wanna join, please ping me.

What is the core problem(s) you want to solve? Define it.

At the moment PCV = $1.1B. Nothing has even started yet, and if FEI project succeeds, within several years Tribe PCV will become one of the largest investment vehicles in the world. DeFi TVL went from $1B to $52B in less than a year. During the same year market cap of Tether went from $6B to $44B, USDC’s MC — from $700M to $10B and total crypto MC — from $190B to $2T.

Just to put things into perspective: a16z has $16.6B assets under management, including $865M in crypto fund, the largest hedge fund in the world Bridgewater Associates — $140B, and world’s biggest sovereign wealth fund of Norway — $1.3T

Clearly, Tribe PCV is no joke and a policy to invest only in ETH, or some random number of assets is in fact a surrogate in the absence of policy. PCV is the size of a hedge fund and is essentially akin to Foreign exchange reserves of a Central Bank. If FEI is meant to be the Central Bank for DeFi, this portfolio should be structured and managed accordingly in the interest of long-term sustainability.

What impact will this project have?

In keeping with PCV’s presumed purposes:

• while maintaining peg to be able to withstand any shocks and mitigate risks including, but not limited to those of market, macro (cyclical), regulatory, technological nature;
• driving Fei integration with a broader panel of DeFi protocols;
• funding Fei R&D, grants and other causes deemed necessary by the Tribe community;
• possibly, stimulating market interest towards Tribe token/rewarding Tribe holders— subject to further discussion

Tribe will acquire a working sustainable investment vehicle implementing a framework for responsible (eventually) algorithmic management of the PCV with the investment objective of the highest possible return at an acceptable level of risk, which reflects long-term considerations, thus ensuring that the PCV benefits both current and future FEI well-being.

What does this group aim to accomplish (goals)

At the initial stage in cooperation with the team a set of foundational documents will be created, including:

• A whitepaper outlining PCV management working group mandate: management assignment, management objective, general management principles, duty to advise and right to be consulted, external cooperation;
  investment policy including: benchmark indices, risk limits, procedures for establishing risk limits, valuation and return measurement, measurement and management of market, (crypto) cyclical, regulatory, technological risks, instrument approval and investment due diligence review procedures, Tribe reporting principles.
• A bluepaper outlining implementation of the whitepaper in math models and algorithms.

At further stages the group will cooperate with the team and outside partners (including Balancer V2 & Uniswap) in implementing the above mentioned bluepaper in code.

How will this task be accomplished (methodology)

By working full-time using tools for group work like JetBrains Space: A Complete Software Development Platform 2

What is the timeline for accomplishing this task?

It will be a permanent group with the first draft of the whitepaper coming in weeks and a bluepaper in a month. Then we’ll start writing code, suggesting PCV structure to the Tribe with the eventual goal of building fully algorithmic autonomous PCV management machine.

Working Group Leader(s) Who manages the group?

I’m @pavel the leader, you all could have seen my posts on this issue in the previous weeks:

I plan to continue this work, hopefully joined by other fellow Triberians.

How will you report your progress to the community (weekly calls, reports)?
Could have some weekly AMA on discord/discourse, although I still think this is counterproductive.

Please, discuss!