Announcing DPI to be listed on Aave’s mainnet Arc market

title: Announcing DPI to be listed on Aave’s mainnet Arc market
status: Community Update
author: @Matthew_Graham
Created: 31-03-2022

Announcing DPI to be listed on Aave’s mainnet Arc market :tada:

After several months of work, I would like to announce that DPI is to be listed on Aave’s mainnet Arc market. Last week, we had our most recent meeting with Fireblocks to continue discussing the DPI product with the compliance team. With help from @Metfanmike and sharing the findings of recent legal counselling we received word earlier this week DPI has been approved to be listed on the Aave mainnet Arc market.

Next step: Governance House is actively preparing the payload to list DAI and DPI on the Arc market. DAI was also recently approved by Fireblocks and Governance House is about to receive a grant from Aave Grants DAO to list both assets. I expect the payload to be written in the next short while and for the AIP to be submitted after one of Aave’s senior developers has reviewed the code. A reasonable timeline is early to mid April for the two listings.

Why Aave Mainnet Arc Market ?

“Aave Arc— a version of the software underlying V2 of the Aave protocol with additional smart contracts that allow for the “whitelisting” of users— is introduced to meet this new institutional market participant demand. Aave Arc will allow for the same transactions as on V2 of the Aave protocol, but only with and among “whitelisted” users— i.e., those users that have undergone uniform know your customer (“KYC”) or know your business (“KYB”) onboarding procedures. This whitelisting process will, subject to the processes and procedures employed by the whitelisters themselves, allow for a uniform AML/CFT (anti-money laundering and countering the financing of terrorism) compliance as well as transaction monitoring employed by those whitelisters.”
(Ref, [10])

“As such, today’s DeFi market, which boasts over $250 billion in total locked value, has largely remained untapped by institutions because of the aforementioned KYC and anti-money laundering (AML) requirements. Enabling institutional access to DeFi could unlock a trillion-dollar opportunity over the next half decade, according to some estimates.”
(Ref, [8])

“Fireblocks has around 250 clients who are using DeFi the way you’d expect (permissionless pools), done via the custody tech firm’s wallet connect or browser extension. As far as Aave Arc goes, any information about whitelisted institutions trading in permissioned DeFi pools is only known to Fireblocks, and remains unknown to Aave and other firms, Fireblocks CEO Michael Shaulov pointed out.”
(Ref, [8])

Why Governance House ?

Simple, as Index Coop scales integrations will require more and more developer resources. Governance House becomes the vehicle that supports these business development initiatives that frees up the core developer team at Index Coop to focus on product. Governance House will streamline how Index Coop’s core developer teams allocate resources by redirecting easier, more operational tasks away from the core developer team. This is like outsourcing clean scopes of work which require near no oversight which frees up Index Coop to focus on the primary object of launching and maintaining products. It also takes what was an in-house cost and now funds this through grants across defi. This is shifting an internal cost to an external source of funding. It also utilises different developers and further builds a strong relationship with leading DeFi protocols like Aave. This builds the moat, as competitors can not fork the relationships. The work with Maker is the beginning of what we hope is another amazing DeFi relationship, replicating the successful relationship we have with Aave.

History / What is Next

  1. 03/02/2022 - Add DPI as collateral on the Aave Arc market
  2. 08/02/2022 - Add DPI as collateral on the Aave Arc market Snapshot
  3. 15/02/2022 - ​​Incentivise the Lending of DPI on Aave Arc Market with INDEX
  4. 24/03/2022 - Grant Application submitted to Aave Grants DAO
  5. 28/03/2022- Received confirmation DPI is approved for Aave Arc Market from Fireblocks compliance team
  6. Ongoing - Write the payload to list DPI and DAI
  7. Next - Submit AIP and coordinate votes

Reference Material

[1] Add Fireblocks as a whitelister on Aave Arc - Governance - Aave
[2] ARC: Adding SEBA Bank as a Whitelister to Aave Arc - Governance - Aave
[3] ARC: Adding Multi-Collateral DAI to the Aave ARC Market - New Asset - Aave
[4] ARC: MakerDAO Direct DAI Deposit Module (D3M) for the AAVE Arc Market - Governance - Aave
[5] ARC - Add DPI as Collateral on the Aave Arc Market - Governance - Aave
[6] Snapshot
[7] IIP - Incentivise the Lending of DPI on Aave Arc Market with INDEX
[9] Introducing Aave Arc — Aave
[10] protocol-v2/aave-arc-whitepaper.pdf at feat/permissioned-market · aave/protocol-v2 · GitHub
[11] Governance House


Just WOW!! Excellent work by @Matthew_Graham and @Metfanmike, this marks an important milestone for the Index Coop and sets the foundations for a bright and successful future for this organisation.

The opportunity that this presents is massive and has the potential to make the Index Coop a household name for years to come.

From someone who comes from a highly regulated accounting background it is great to see our products now being able to be purchased by Institutional businesses. This opens the door to a new market with huge potential.

The relationship our contributors have developed with Aave and other DeFi protocols is priceless and will pay dividends in the future. Great work!! :rocket:


Great work here. Big needle moving as usual from @Matthew_Graham and @Metfanmike, unlocking big gains in capital efficiency for institutional DPI investors! :raised_hands:


Awesome, Matt! Seeing how the institutional market develops is going to be interesting and it is fantastic to have Index in there with DPI!


Amazing work @Matthew_Graham & Governance House !

Thanks for pushing this update with the Aave Community and the Arc whitelisters. Aave Arc users will benefit greatly from DPI listing; with its exposure to DeFi and optimised volatility :smiley: