Fei raised $1.3 billion one year ago today, the biggest DeFi token launch in history
And then everything broke
A thread on painful lessons learned, and an epic comeback that isnβt done yet π₯
And then everything broke
A thread on painful lessons learned, and an epic comeback that isnβt done yet π₯
1/ First, the setting. Early 2021.
ETH was ripping off the back of DeFi summer. Crypto began to feel inevitable. New projects (especially algo stables) were launching with FDV in the hundreds of millions and billions.
The only word I could use to describe it was frenzy
ETH was ripping off the back of DeFi summer. Crypto began to feel inevitable. New projects (especially algo stables) were launching with FDV in the hundreds of millions and billions.
The only word I could use to describe it was frenzy
2/ Those algostables were not sustainable and eventually failed (ESD, BAC, etc.). Fei was made to solve those issues
Protocol Controlled Value was the biggest idea. When algorithms and governance own the reserves directly, DeFi protocols could build unforkable moats and scale π
Protocol Controlled Value was the biggest idea. When algorithms and governance own the reserves directly, DeFi protocols could build unforkable moats and scale π
3/ I wrote the entire protocol myself. It included many novel mechanisms and got a bit carried away
In retrospect, Fei and launch could have been much simpler and safer, and I now strongly bias towards reduced complexity
In retrospect, Fei and launch could have been much simpler and safer, and I now strongly bias towards reduced complexity
4/ The pressure ramped up fast. Everyone was talking about Fei. ETH doubled again. Many other tokens 50xβed.
I was obsessed with shipping, I wanted to be live and part of the wave.
I was obsessed with shipping, I wanted to be live and part of the wave.
5/ The excitement of the community clouded my judgment. We had committed to launching a protocol that, while audited, was not really ready.
As nervous as I was, we went ahead with the launch.
As nervous as I was, we went ahead with the launch.
6/ Seeing over a billion dollars flood into the contracts I wrote was truly scary. The series of events that followed was brutal:
- FEI peg below $.70
- Multiple production vulnerabilities (none exploited)
- Understandably livid community
- FEI peg below $.70
- Multiple production vulnerabilities (none exploited)
- Understandably livid community
7/ To say I felt like a failure is a gross understatement. As I fought one fire, two new ones would knock me down
For about a month, I was a shell and had lost nearly all of my motivation and confidence
Rock bottom.
For about a month, I was a shell and had lost nearly all of my motivation and confidence
Rock bottom.
8/ One tiny step at a time, we and the community fixed the problems with the peg, mechanisms and PCV.
We kept our heads down, and expanded partnerships and integrations with the likes of @RariCapital and @AaveAave
We kept our heads down, and expanded partnerships and integrations with the likes of @RariCapital and @AaveAave
9/ Today, the Tribe DAO holds nearly $800m in PCV, over 150k ETH and makes over $50m per year in yield π€―
After the merge with Rari, the Tribe includes top talent and innovative products, with new DAOs joining such as @VoltProtocol and @MidasCapitalXYZ
After the merge with Rari, the Tribe includes top talent and innovative products, with new DAOs joining such as @VoltProtocol and @MidasCapitalXYZ
10/
I owe the recovery to my family, team, advisors, and therapist.
The biggest lessons are:
- Be process oriented not outcome oriented
- Surround yourself with good people
- Find your flow and zone everything else out
I owe the recovery to my family, team, advisors, and therapist.
The biggest lessons are:
- Be process oriented not outcome oriented
- Surround yourself with good people
- Find your flow and zone everything else out
11/ Being outcome oriented leads to overconfidence in good times and depression in bad times.
Stay focused on what you can control and check for blind spots. The best processes emphasize simplicity, minimize existential risks, and bias for action πͺ
Stay focused on what you can control and check for blind spots. The best processes emphasize simplicity, minimize existential risks, and bias for action πͺ
12/ It is vital to be around people who you can be radically transparent with. People who will be there for you when shit hits the fan, tell you when you f up, and forgive you immediately.
I am so grateful to the Fei team and everyone else behind me π
I am so grateful to the Fei team and everyone else behind me π
13/ Lastly, the antidote to volatility is to put on blinders and flow.
If I had spent less time getting distracted by the bull market and hype, I would have made fewer mistakes and built a better protocol from day 0
If I had spent less time getting distracted by the bull market and hype, I would have made fewer mistakes and built a better protocol from day 0
I am a builder, and all I want is to push DeFi forward, create value, and have fun doing it.
The Tribe is stacked, battle hardened, and flowing.
Donβt blink
The Tribe is stacked, battle hardened, and flowing.
Donβt blink
Loading suggestions...