Forum Discussion

https://tribe.fei.money/t/proposal-buying-defi-pulse-index-dpi/3348 Author: Bruno Rodrigues and Matthew Graham

Basic Summary

Using the $10M DPI to be acquired as detailed in FIP-14, we propose creating a $18M DPI-FEI pool on Sushiswap and depositing $1M DPI and $1M FEI in the Rari Index Coop Fuse Pool. Deploying DPI and FEI in the Rari Fuse Pool is captured by FIP-13.

Fei Protocol and Index Coop communities are working together to explore attaining SUSHI rewards and possibly integrating the DPI-FEI LP token into Aave and Creams lending platform.

Motivation

This proposal increases on-chain FEI liquidity and utility. The DPI-FEI pool will be the largest stable coin DPI pool trading on a decentralised exchange and the SLP token has the potential to be collateral on both CREAM and Aave’s AMM platform.

Providing liquidity on Sushiswap is expected to strengthen the three way relationship between Fei Protocol, Index Coop and Sushiswap. The three communities are currently discussing the possibility of the SUSHI incentives, and with the INDEX incentives on the DPI-ETH pool coming to an end, there is the possibility that the DPI-FEI pools becomes the largest on-chain source of liquidity for DPI which is great for FEI. This liquidity helps leverage traders take advantage of the FEI borrow liquidity against DPI in both Fuse and Kashi without additional swaps through ETH.

In addition to exploring incentives on the DPI-FEI pool, we are also seeking to list the SLP token (ERC20) as collateral on lending protocols like Aave’s AMM and CREAM’s platform. Liquidity providers can then potentially earn additional rewards and use the SLP token to draw a loan. This is expected to increase the stickiness of the DPI-FEI liquidity.

We propose depositing $1M DPI and $1M FEI into the Rari Fuse Index Coop Pool as part of FIP-13 and we are also considering depositing DPI and FEI to Kashi which will draw on DPI and FEI tokens from the Sushiswap pool.

Specification

$9M of the DPI acquired via a bonding Curve detailed in FIP-14 shall be paired with $9M of minted FEI and deposited into a 50/50 DPI-FEI pool on Sushiswap, using an ERC-20 compatible UniswapPCVDeposit similar to the FEI-ETH pair. This pair will not have any reweights. The oracle price for depositing will be the Chainlink DPI-USD feed.

The DPI will be held in an ERC20CompoundPCVDeposit for the Index Coop Fuse pool.

The mechanism for seeding these pools will be a 90/10 split on all incoming bonding curve funds to the respective destinations. Future funding through the bonding curve beyond the subsidized $10m will also be split according to these ratios.

Voting Rules

Voting will last 2 days. This is a non-binding signal vote. Please keep in mind that snapshot votes can be changed but not withdrawn until the end of the voting period.

The two options to vote on are:

• FOR Provide $18M Liquidity to DPI-FEI pair on Sushiswap

• AGAINST Do Not Provide $18M Liquidity to DPI-FEI pair on Sushiswap

This is a single choice vote, if option 1 wins the majority, we will submit a DAO proposal 24h after the end of the snapshot vote.