Fei Money

Hey,

This is Scott Lewis, Professor Emeritus at DeFi Pulse.

Been chatting with Joey and have come to an understanding about a potential swap if INDEX tokens to bring Fei into the Index Coop family, following discussions in the community forum about acquiring INDEX: https://tribe.fei.money/t/proposal-buying-defi-pulse-index-dpi/3348

Proposal:

Have a smart contract execute of swap of 100,000 INDEX from DeFi Pulse using one of the following options:

100% ETH:

1266.3 ETH for 100,000 INDEX

50% ETH, 25% FEI, 25% TRIBE:

633.15 ETH for 50,000 INDEX 991512.9 FEI for 25,000 INDEX 1235325.922 TRIBE for 25,000 INDEX

These amounts represent a 5% premium to spot, verified by both Joey and myself immediately before submitting this proposal.

Rationale:

DeFi Pulse is excited to bring the Fei community into the coop, and also derisk its balance sheet from “nearly all INDEX tokens” to just “mainly INDEX tokens”.

Joey has told me that Fei is interested in being an active participant in the INDEX Coop’s metagovernance votes and sees Coop products as a good fit for some of FEI’s PCV.

Premium rationale - There is limited liquidity in INDEX tokens on uniswap, and the market impact of a buy this large would exceed 50%.

Execution Details:

Fei DAO will deploy an appropriate version of the Badger DAO OTC Contract.

If 100% ETH wins, we will use 1 contract with WETH. If the mixed option wins, we will use 3 separate contracts.

Note: DeFi Pulse will consider snapshot approval of this proposal (and execution of OTC contracts) as finalization of both parties intent to trade.

Appendix:

Joey and I grabbed these rates during a video call immediately before submission

Google Sheet with screenshots and calculations is here: https://docs.google.com/spreadsheets/d/1eu0hnqxyWPfX1kfyCYM9dv6ExSOIk0x7_d-f4n7xOmk/edit?usp=sharing

Forum discussion

https://tribe.fei.money/t/proposal-buying-defi-pulse-index-dpi/3348

Voting Rules:

This is an approval style vote, meaning multiple options can be selected. Whichever option of the group receives highest approval, with a >50% approval and 10M TRIBE quorum will be the winning option.