# The $INDEX Flywheel

**URL:** <https://gov.indexcoop.com/t/the-index-flywheel/447>\
**Category:** Tokenomics\
**Created:** [1 December 2020 12:08 UTC](https://gov.indexcoop.com/t/the-index-flywheel/447 "2020-12-01T12:08:20Z")\
**Posts on this page:** 1\
**Showing post:** 5

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**Author:** ![DarkForestCapital](https://avatars.discourse-cdn.com/v4/letter/d/d6d6ee/32.png) [@DarkForestCapital](https://gov.indexcoop.com/u/DarkForestCapital)\
**Post date:** [1 December 2020 21:36 UTC](https://gov.indexcoop.com/t/the-index-flywheel/447/5 "2020-12-01T21:36:07Z")

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Hey,

Felix was referring to this discussion about using [$INDEX as a risk backstop](https://gov.indexcoop.com/t/intrinsic-dpi-productivity-w-index-as-risk-backstop/274) in the case of a token within an index product like DPI going to 0. Index stakers will take the hit and tokens will be auctioned off to cover the loss.

This is similar to the [AAVE safety module](https://docs.aave.com/aavenomics/safety-module) where AAVE stakers are rewarded for staking their tokens, knowing that in a shortfall they will be sold off up to 30% and auctioned to the market. [mStable](https://docs.mstable.org/) also has a token that serves as a backstop for their meta tokens.

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_[View the full topic](https://gov.indexcoop.com/t/the-index-flywheel/447)._