In Brief:
- Balancer DAO collaborates with Fei DAO via a DAO agreement that links their interests.
- Fei V2 and Balancer V2 integration aims to provide high liquidity and efficiency to both firms respectively.
- The firms initiated a Token Swap that totaled over $9M at present market value.
Balancer DAO announced a partnership with Fei DAO through a DAO agreement that connected their interests.
According to the blog post, to manage risk, deploy liquidity, and earn yield with higher capital efficiency, Fei V2 will use a unique Balancer V2 investment pool.
Founder of Fei, Joey Santoro, stated “We are really excited to work more closely with the Balancer community and hope this partnership strengthens both projects!”
This Fei V2 and Balancer V2 integration is expected to deliver a significant amount of liquidity to the Balancer Protocol while also providing Fei with reliable and efficient technology.
As part of the DAO agreement, the two organizations initiated a Token Swap totaling over $9M at current market value.
200,000 BAL was exchanged for 2,598,000 TRIBE and 2,454,000 FEI in the TokenSwap.
Fei DAO will deposit BAL into BAL/WETH 80/20 paired with ETH from the PCV and commit to holding for the long run through meta-governance.
Both organizations agreed to keep the assets they receive for at least a year.
The Balancer DAO will be able to stake TRIBE and FEI to increase their FeiRari Fuse pool ownership.
The FEI can be used to fund operating expenditures in order to avoid having to sell BAL on the open market, which could affect the price.
Also read: DeFi Platform Ardana Formed a Strategic Partnership with NEAR Protocol.
Co-founder of Balancer Labs, Fernando Martinelli added “Not only is this partnership an opportunity for Balancer to grow its TVL by likely billions with Fei PCV, but also (and maybe even more importantly) that this will set a precedent for other DAOs and protocols to use Balancer in a similar way.”
