ARC - Add DPI as Collateral on the Aave Arc Market

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A proposal by 3SE Holdings suggests onboarding DeFi Pulse Index (DPI) as collateral on the Aave ARC market to provide direct DeFi exposure without listing multiple tokens, thus increasing DeFi accessibility for traditional investors. The proposal also includes potential INDEX incentives for lending DPI on Aave Arc Markets, which could further boost DeFi adoption among traditional investors.

The discussion revolves around a proposal by MatthewGraham, Metfanmike, and Mringz from 3SE Holdings to onboard DeFi Pulse Index (DPI) as collateral on the Aave ARC market1. DPI, a leading DeFi-themed indices product, is backed by strong on-chain liquidity and institutional investors. The proposal aims to provide direct exposure to DeFi without the need to list multiple tokens, thereby making DeFi more accessible to traditional investors via the KYC approved Aave ARC platform1.

DPI, a basket of 13 popular DeFi tokens managed by Index Coop, is seen as an excellent fit for collateral in the Aave ecosystem due to its significant borrow demand, low volatility, efficient sector representation, and liquidity via primary and secondary markets1. The proposal also highlights that IndexCoop DAO is voting on a liquidity mining campaign to attract TVL to the Arc Market and expose institutions to the power of token incentives1.

The discussion concludes with the specification that DPI should be whitelisted for use on the Aave Arc Market1. MatthewGraham also announced that Index Coop is considering offering INDEX incentives to those who lend DPI on Aave Arc Markets, and shared links to the ongoing discussion and snapshot vote for this proposal2,3. This proposal, if accepted, could potentially increase the accessibility and adoption of DeFi among traditional investors.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 05/12 01:14