A vote to merge Rari Capital, an open interest rate protocol that allows the creation of permissionless lending pools, and Fei Protocol, issuer on the native algorithmic stablecoin FEI, was approved on Tuesday at Ethereum (ETH) block height 13850929.
Looking at the total value locked (TVL) in these projects, per DeFi Pulse, Rari Capital currently has USD 1.384bn, and Fei Protocol stands at USD 845.664m – making the combined TVL in the merged entity 2.23bn.
Among Rari’s governance token (RGT) holders, 93% approved the measure while 1% rejected it, and the remaining ~6% abstained from voting. Similarly, 90% of Fei’s governance token (TRIBE) holders voted in favor of the measure while the remaining ~10% abstained from voting, and no one opposed.
As part of the deal, RGT tokens will be exchangeable for TRIBE – which had a circulating supply of 619,605,725 prior to the merger – at the rate of 1 RGT = 26.7 TRIBE.
Now that the merger is approved, Rari Capital protocol governance will become fully integrated with the Tribe decentralized autonomous organization (DAO) and the TRIBE governance token, according to the merger proposal. Tribe will also gain control of all current Rari Capital treasury positions, and will be in charge of any future airdrops, or events that are similar to an airdrop.
Meanwhile, dissatisfied Tribe holders will have the option to exchange their tokens for FEI at a rate of 1 TRIBE = 1.22 FEI. “The ragequit option will be available for three calendar days after the merger proposals pass,” the proposal read.
Cryptonews.com has reached out to Fei Protocol for comment.
Rari’s RGT has been performing badly over the last month. At 10:25 UTC, it is trading at USD 23.65, up 1.2% in a day and down by more than 36% over the past 30 days, according to CoinGecko.
TRIBE is up 0.5% in a day and down 16.6% in a month, currently trading at nearly USD 0.93.
However, its community is quite optimistic about the merger.
“I also think its pretty great for all parties,” an RGT holder said in the community’s forum. “TRIBE is sharing ownership of an actual billion dollar treasury and all the key stakeholders couldn’t be more stoked. Try not to focus on the price action or fud [fear, uncertainty, doubt], I don’t want to trivialize your concerns either but there are so many more lenses to apply than the ones you have here.”
Meanwhile, Jeff Amico, who leads venture capital powerhouse Andreessen Horowitz‘s Crypto Network Operations group, called the merger a “landmark proposal.”
“It brings together 2 of the most ambitious communities in DeFi & exemplifies the innovative spirit of the industry as a whole,” Amico said.