# IIP-82: Use IndexCoop's AAVE holdings to list FEI on Aave V2

**URL:** <https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573>\
**Category:** Proposal\
**Tags:** IIP\
**Created:** [5 September 2021 23:04 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573 "2021-09-05T23:04:04Z")\
**Posts on this page:** 19\
**Page:** 1

<div class="post-metadata">

**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://gov.indexcoop.com/u/oneski22)\
**Post date:** [5 September 2021 23:04 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/1 "2021-09-05T23:04:05Z")

</div>

IIP: 82  
title: Use IndexCoop’s AAVE to list FEI on Aave V2 Market  
status: Proposed  
authors: Joey Santoro (@joey, Fei Protocol Founder), Brianna Montgomery (@Brianna, Fei Labs) Matthew (@Matthew_Graham) David (@oneski22)  
created: 2021-09-05

## Simple Summary / Abstract

This IIP requests the IndexCoop’s Aave voting rights to be used for the sole purpose of submitting an AIP and then separately for voting FOR listing [FEI](https://etherscan.io/token/0x956F47F50A910163D8BF957Cf5846D573E7f87CA) as a collateral asset on Aave V2.

## About the Requestor

FEI is one of the few truly decentralized stablecoins and is mostly backed by ETH. Fei Protocol’s PCV holds ~$970M, providing a 459% collateralization ratio for all circulating FEI. FEI’s total supply stands at $416M with $206M FEI controlled by the protocol and $210M FEI in circulation. FEI is within the top 10 largest stablecoins by total supply.

While relatively new, the FEI protocol and community have made significant progress on peg stabilization mechanisms. FEI remains one of the most liquid stablecoins, with more than $300M in liquidity available on [Uniswap v2](https://v2.info.uniswap.org/pair/0x94b0a3d511b6ecdb17ebf877278ab030acb0a878). Current liquidity dynamics enable $1MM trades with \<0.95bps slippage from the Uniswap V2 pool.

Fei introduces a community-governed reserve-backed stablecoin that aims to achieve digitally-driven, governance-minimized central banking. Fei has created a new stablecoin that seeks to stabilize itself, not via IOU-based debt commitments, rather through a monetary peg-based policy on the basis of protocol-controlled reserves, currently valued at $970 million.

At the time of posting, the 7- day FEI volume on [Uniswap V3](https://info.uniswap.org/#/tokens/0x956f47f50a910163d8bf957cf5846d573e7f87ca) is $163M and $292M on [Uniswap V2](https://v2.info.uniswap.org/token/0x956f47f50a910163d8bf957cf5846d573e7f87ca). In addition to the new volume and TVL that FEI would bring to the Aave ecosystem, FEI would provide Aave with diversification benefits, including another decentralized stablecoin.

Authors:

@Joey is the founder of Fei Protocol.  
@Brianna is a member of the Fei Labs team.

## Proposal Details

The proposal calls for the addition of FEI to the Aave V2 market for supply and borrow 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%](https://docs.aave.com/risk/liquidity-risk/borrow-interest-rate). The full details can be found on the Aave forums here.

Fei Protocol has advanced FEI by:

- Submitting an [ARC on the governance forum](https://governance.aave.com/t/arc-add-support-for-fei-as-a-deposit-currency/4542),
- Completed a [risk assessment](https://governance.aave.com/t/arc-add-support-for-fei-as-a-deposit-currency/4542/19)
- Submitted a [PR](https://github.com/aave/protocol-v2/pull/200)
- Completed a sentiment check via [snapshot](https://snapshot.org/#/aave.eth/proposal/QmQvMC7CRx9o929LwacitsmDAuESs1asHJ6JwH914Bru2B)
- Incorporated feedback from the Aave community

## Motivation

### Benefits for Aave and the DeFi Ecosystem

If listed, FEI would be one of the most decentralized stablecoins on Aave. The Fei DAO can support FEI markets on Aave by providing FEI liquidity. Traders will have the ability to tap into the [large FEI-ETH liquidity on Uni V2 ($310M)](https://v2.info.uniswap.org/pair/0x94b0a3d511b6ecdb17ebf877278ab030acb0a878) as well as any future protocol owned or incentivized liquidity pools.

Enabling FEI for lending on Aave would allow the $426M circulating FEI supply to be deposited into Aave, and would also allow Fei Protocol to use the protocol-controlled value (PCV) ($756M) to create highly liquid lending markets.

### Benefits for Index Coop

Fei Protocol provides approximately $18M DPI-FEI on-chain liquidity via Sushiswap after purchasing [$10.1M](https://etherscan.io/token/0x1494ca1f11d487c2bbe4543e90080aeba4ba3c2b?a=0xBf5721c5E1C370f6F1A3E21b3972E0AcE93A1E84) of DPI on the 10th 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. There is over [$300M of TVL](https://v2.info.uniswap.org/pair/0x94b0a3d511b6ecdb17ebf877278ab030acb0a878) in the FEI-ETH pool on Uniswap V2 which is ideal for the [iETH-FLI](https://gov.indexcoop.com/t/iip-57-launching-ieth-fli-the-ethereum-inverse-flexible-index/1854) product.

## Specification

DPI multi-sig wallet delegates the Aave voting power to an EOA controlled by IndexCoop’s Dev Team which then can be used for submitting the FEI proposal and moving FEI forward to a vote!

## Vote

#### FOR

- Delegate IndexCoop’s Aave voting power to 0x7f4C5938AF9731e9feadc09C3FA782508198532E for listing FEI on Aave V2

#### AGAINST

- Do not delegate IndexCoop’s Aave voting power to 0x7f4C5938AF9731e9feadc09C3FA782508198532E for listing FEI on Aave V2

_ **NOTE: There will NOT be separate snapshot vote, to decide how INDEX’s AAVE holdings will vote on the AIP should this IIP pass.** _

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).

---

<div class="post-metadata">

**Author:** ![joey](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/joey/32/1814_2.png) [@joey](https://gov.indexcoop.com/u/joey)\
**Post date:** [5 September 2021 23:19 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/2 "2021-09-05T23:19:50Z")

</div>

As a core contributor over at Fei, it would be a fantastic use of the metagovernance power that INDEX holds to help list FEI on Aave. Of course this is good for Fei Protocol, but also helps unlock new opportunities for FEI in the Index Coop ecosystem such as using aFEI in the next set of FLI products for example.

Excited to see more proposals like this coming through now that the community has further formalized the metagovernance proposal process!

---

<div class="post-metadata">

**Author:** ![mrvls\_brkfst](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/mrvls_brkfst/32/401_2.png) [@mrvls\_brkfst](https://gov.indexcoop.com/u/mrvls_brkfst)\
**Post date:** [6 September 2021 06:27 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/3 "2021-09-06T06:27:50Z")

</div>

Thank you @oneski22 , this looks good all round - for the protocols and the ecosystem. Will support.

---

<div class="post-metadata">

**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://gov.indexcoop.com/u/oneski22)\
**Post date:** [6 September 2021 10:35 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/4 "2021-09-06T10:35:21Z")

</div>

@sixtykeys @mel.eth @Pepperoni_Joe requesting an IIP number on behalf of the FEI team, no vote yet.

---

<div class="post-metadata">

**Author:** ![Brianna](https://avatars.discourse-cdn.com/v4/letter/b/6f9a4e/32.png) [@Brianna](https://gov.indexcoop.com/u/Brianna)\
**Post date:** [6 September 2021 21:32 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/5 "2021-09-06T21:32:35Z")

</div>

As a member of the Fei Core Team with a focus on ecosystem development / business operations, I support this request and look forward to further cooperation with the IndexCoop community.

---

<div class="post-metadata">

**Author:** ![Brianna](https://avatars.discourse-cdn.com/v4/letter/b/6f9a4e/32.png) [@Brianna](https://gov.indexcoop.com/u/Brianna)\
**Post date:** [7 September 2021 03:35 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/6 "2021-09-07T03:35:05Z")

</div>

Requesting for a snapshot for Wednesday (September 8th) this week. @sixtykeys

---

<div class="post-metadata">

**Author:** ![sixtykeys](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/sixtykeys/32/3632_2.png) [@sixtykeys](https://gov.indexcoop.com/u/sixtykeys)\
**Post date:** [7 September 2021 19:36 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/7 "2021-09-07T19:36:17Z")

</div>

Hey @joey @Brianna @Matthew_Graham @oneski22, this IIP has been scheduled to go live on Wednesday, 8th September.  
[Snapshot here](https://snapshot.org/#/index-coop.eth/proposal/QmZa8WsStWo84iz1wGCsPzuM1TJTAi4DvsP2yvhu7669CZ).

cc: @mel.eth

---

<div class="post-metadata">

**Author:** ![sixtykeys](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/sixtykeys/32/3632_2.png) [@sixtykeys](https://gov.indexcoop.com/u/sixtykeys)\
**Post date:** [12 September 2021 13:54 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/8 "2021-09-12T13:54:18Z")

</div>

Confirming that this IIP has passed with 211.67k INDEX (99.7%) voting FOR. ✅  
[Snapshot here](https://snapshot.org/#/index-coop.eth/proposal/QmZa8WsStWo84iz1wGCsPzuM1TJTAi4DvsP2yvhu7669CZ).

---

<div class="post-metadata">

**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://gov.indexcoop.com/u/oneski22)\
**Post date:** [13 September 2021 19:31 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/9 "2021-09-13T19:31:46Z")

</div>

FEI has submitted the AIP here: [https://app.aave.com/governance/35-QmbfLFGJdZQn21pwJGQzVnFqLk4vXHTmHUhio8ArWmvVqZ/yes](https://app.aave.com/governance/35-QmbfLFGJdZQn21pwJGQzVnFqLk4vXHTmHUhio8ArWmvVqZ/yes)

In accordance with the language from the IIP quoted below, we will be voting FOR.

> [@oneski22](#):
>
> ## Vote
> 
> #### FOR
> 
> - Delegate IndexCoop’s Aave voting power to 0x7f4C5938AF9731e9feadc09C3FA782508198532E for listing FEI on Aave V2
> 
> #### AGAINST
> 
> - Do not delegate IndexCoop’s Aave voting power to 0x7f4C5938AF9731e9feadc09C3FA782508198532E for listing FEI on Aave V2
> 
> _ **NOTE: There will NOT be separate snapshot vote, to decide how INDEX’s AAVE holdings will vote on the AIP should this IIP pass.** _

---

<div class="post-metadata">

**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\
**Post date:** [13 September 2021 20:41 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/10 "2021-09-13T20:41:15Z")

</div>

Confirming that due to Fei having enough AAVE to make their own proposal (as they have done: [Add FEI to Aave V2](https://app.aave.com/governance/35-QmbfLFGJdZQn21pwJGQzVnFqLk4vXHTmHUhio8ArWmvVqZ)), it was determined that the easiest way to execute this IIP is to vote using using the typical/current metagov address `0x10F87409E405c5e44e581A4C3F2eECF36AAf1f92` ([IIP-49](https://gov.indexcoop.com/t/iip-49-dpi-metagoverance-vote-delegation-to-multisig/1684)) and NOT delegate to `0x7f4C5938AF9731e9feadc09C3FA782508198532E `

---

<div class="post-metadata">

**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\
**Post date:** [13 September 2021 22:18 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/11 "2021-09-13T22:18:36Z")

</div>

So executed

 ![Screen Shot 2021-09-13 at 5.17.56 PM](https://canada1.discourse-cdn.com/flex027/uploads/theindexdao/original/2X/6/61ceb94341dc20e9285dd4d593caa1b1b14a3773.png)

---

<div class="post-metadata">

**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://gov.indexcoop.com/u/oneski22)\
**Post date:** [14 September 2021 22:25 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/12 "2021-09-14T22:25:29Z")

</div>

UPDATE: There are issues with the AIP submitted. We are working with @joey and team to assess the situation.

---

<div class="post-metadata">

**Author:** ![joey](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/joey/32/1814_2.png) [@joey](https://gov.indexcoop.com/u/joey)\
**Post date:** [15 September 2021 19:42 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/13 "2021-09-15T19:42:04Z")

</div>

I’ve summarized these issues here on the Aave forum: [ARC: Add support for $FEI as a deposit currency - #31 by Joey-fei - New Asset - Aave](https://governance.aave.com/t/arc-add-support-for-fei-as-a-deposit-currency/4542/31?u=joey-fei)

The current status of the proposal is that it is cancelled and we are awaiting re-delegation to re-propose. Big thank you to @oneski22 @anon10525910 and the entire Index Coop community for patience and support on this proposal.

---

<div class="post-metadata">

**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\
**Post date:** [16 September 2021 16:52 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/14 "2021-09-16T16:52:48Z")

</div>

Looks like this is live again: [Add FEI to Aave V2](https://app.aave.com/governance/37-QmbfLFGJdZQn21pwJGQzVnFqLk4vXHTmHUhio8ArWmvVqZ)

What needs to happen now?

---

<div class="post-metadata">

**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://gov.indexcoop.com/u/oneski22)\
**Post date:** [16 September 2021 17:48 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/15 "2021-09-16T17:48:43Z")

</div>

Per IIP-82 we will be voting FOR.

Assuming no payload issues, this will be the end of the saga!

---

<div class="post-metadata">

**Author:** ![joey](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/joey/32/1814_2.png) [@joey](https://gov.indexcoop.com/u/joey)\
**Post date:** [16 September 2021 17:49 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/16 "2021-09-16T17:49:33Z")

</div>

Amazing 🙂 Never forget [Murphy's law - Wikiquote](https://en.wikiquote.org/wiki/Murphy%27s_law)

---

<div class="post-metadata">

**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\
**Post date:** [16 September 2021 20:22 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/17 "2021-09-16T20:22:46Z")

</div>

kk will coordinate with @dylan and confirm here once executed

---

<div class="post-metadata">

**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\
**Post date:** [16 September 2021 22:10 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/18 "2021-09-16T22:10:09Z")

</div>

Vote executed ✅

[meeting character count]

---

<div class="post-metadata">

**Author:** ![mel.eth](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/mel.eth/32/3539_2.png) [@mel.eth](https://gov.indexcoop.com/u/mel.eth)\
**Post date:** [13 November 2021 18:40 UTC](https://gov.indexcoop.com/t/iip-82-use-indexcoops-aave-holdings-to-list-fei-on-aave-v2/2573/19 "2021-11-13T18:40:00Z")

</div>

@oneski22 (please tag relevant inputs as appropriate)

It appears that implementation of this IIP is complete on the [Aave v2 platform](https://app.aave.com/#/reserve-overview/0x956f47f50a910163d8bf957cf5846d573e7f87ca-0x956f47f50a910163d8bf957cf5846d573e7f87ca0xb53c1a33016b2dc2ff3653530bff1848a515c8c5), please confirm there is no further planned work related to this IIP.

cc: @anon10525910  
cc: @sixtykeys @Lavi @Mringz