Fei Protocol · interactive mechanism simulation

ETH deposits mint FEI on a bonding curve; ETH reserves become Protocol Controlled Value (PCV). Trades on the FEI/ETH pool earn a mint reward when they push price toward $1 peg, or pay a burn penalty when they push it away. If FEI stays off-peg too long, the Reweight Engine spends PCV to buy FEI back toward peg and burns the excess supply.
ETH Depositors Genesis / bonding curve Bonding Curve mints FEI, ETH → PCV PCV Treasury 0.0 ETH Traders buy / sell FEI FEI / ETH Pool $1.000 · on peg deviation: 0.0% Direct Incentives reward 5% / penalty 8% 0 FEI net minted Reweight Engine armed · trigger > 5.0% 0 reweights FEI Supply 500,000,000 FEI 0 burned
FEI price
$1.000
PCV treasury
0.0 ETH
FEI supply
500,000,000
Trades simulated
0
Reweights triggered
0
Parameters — edit me
5%
8%
5.0%
50%
1.5/s
Controls

Illustrative simulation. Modeled on Fei Protocol's researched design (direct incentives: burn penalties / mint rewards on trades; Protocol Controlled Value from bonding-curve deposits; peg reweights that spend PCV and burn excess supply). Values, trade sizes and timing are randomized for visualization — not live onchain data. The failure-mode button illustrates the documented launch depeg / "roach motel" dynamic, not a live event. Part of The Onchain Experiment Atlas.