FEI introduced the concept of product control value (PCV). The Tribe DAO that manages staboins issues FEI at the subsidized rate at its launch to generate a Ether pool for its Treasury. Tribe then provided a portion of that ETH with freshly minted FEI in the ETH FEI liquidity pool on Uniswap to enable stablecoin trading. While users can buy FEI from the Tribe DAO, they cannot sell FEI back to it and must sell FEI on the open market. Stability is maintained by an excitation system. If the FEI price exceeds the peg, arbitraggers can sell ETH to the Tribe DAO and then sell their FEI on Uniswap to generate a profit.

If the price is below the hook, incentives for Tribe to install come into play. FEI buyers in the Uniswap liquidity pool receive a rebate to reinstate the peg, and sellers must pay this rebate and excess penalties to incentivize the reinstate peg. The further FEI prices go away from the peg, the bigger the rebates and fines, making it very unprofitable for sellers to sell FEI at a discount. As a last resort, Tribe could use its Ether reserves to buy back FEI and burn excess FEI to reduce supply. Tribe, as a management organization only, has the following functions:

• Specify Minter and Burner contracts (including new binding curves)
• Adjust the scale targets and allocation rules on the binding curve
• Adjust the weight growth rate of incentive time
• Reweighted hook recovery percentage reward

• Re-weight any hook Uniswap pool