Governance Update - 09.08.21

Two new proposals have just gone live, so please make sure to vote!
Snapshot here

Index Improvement Proposals

This Week

IIP-082 - Use IndexCoop’s AAVE to list FEI on Aave V2 Market (Proposed by: @Joey, @Brianna, @Matthew_Graham and @oneski22)

Last week, IIP-80 sought to establish a new class of governance proposals, Meta Governance Proposals (MGP), that are used exclusively for proposals that use the IndexCoop’s meta governance power in any way outside of voting on existing proposals. This IIP, unfortunately, failed to reach quorum and could not pass. Therefore, any proposals which seek to use the Index Coop’s Meta Governance powers will continue to go through the normal IIP process.

This new proposal seeks to use the $AAVE (>330 tokens) held in our DPI contract to submit an AIP and then separately vote FOR listing FEI as a collateral asset on Aave V2. FEI will be added to the Aave V2 market for supply and borrowing only. That means there will be a 0% Loan to Value, 20% Reserve Factor, and the same slope curve as sUSD with Slope 1 of 4% and Slope 2 of 100%.

Fei Protocol is currently an Index Coop partner, providing approximately $18M DPI-FEI on-chain liquidity via Sushiswap after purchasing $10.1M of DPI on the 10th of August 2021. The remaining $1M DPI, along with $1M FEI, was deposited into the Index Coop Rari Fuse pool. Once listing FEI on Aave V2, Fei Protocol would like nothing more than to provide the liquidity for the next round of leverage products. Fei Protocol can ensure there is sufficient liquidity for future leverage products. Over $300M of TVL is in the FEI-ETH pool on Uniswap V2, ideal for the iETH-FLI product.

Snapshot date: September 8th 2021 to September 11th 2021
Quorum: 104,196 INDEX

IIP-083 - Wintermute Market Making Proposal (Proposed by: @fallow8 and @wishful_cynic)

After multiple forum discussions and a community call, this proposal is finally going to IIP. Wintermute Trading Ltd is a leading global algorithmic market maker in digital assets. They create liquid and efficient markets on centralized and decentralized trading platforms and off-exchange. This proposal incentivizes one of the largest market-makers in our industry to work on behalf of our protocol.

To facilitate the market making Wintermute will be doing on the community’s behalf; the proposal aims to lend 1% of the $INDEX supply (100,000 $INDEX) for market-making purposes as a loan to Wintermute Trading. Wintermute Trading will have to return in 1 year:

  • The entire loan amount in INDEX; or
  • $5 million (USDC/DAI/ETH or mutually agreed upon currency) if any Index product or INDEX itself is listed on a Tier 1 CeFi exchange (defined below) with the aid of Wintermute’s efforts; or
  • $7.5 million (USDC/DAI/ETH or mutually agreed upon currency)

In return, Wintermute will commit to maintaining inventory in Indices upon them getting listed on any Tier 1 Cefi exchange. The amount invested will be 10% of AuM up to a total of $20 Million. In addition, Wintermute will continue market-making on KuCoin and across DeFi aggregators.

Snapshot date: September 8th 2021 to September 11th 2021
Quorum: 104,196 INDEX

Please leave feedback if this is useful! I would also love to hear any thoughts and suggestions.
More information on the votes from last week is here.
cc: @mel.eth