Loss of color usually means stress of the fish. It may be ick. Ick, is a deathly sickniss fish can get, and lives on the body of the fish, feeding on the scales and flesh until the fish dies. On his lip, is it more like a bump? Could we see a pic?
Fading color is definitely a sign of illness. Do you have a quarantine tank? What is your temperature in the tank? What are your bioload levels in the tank? Are there any other signs on the fish that it is ill?
I will try to get a pic on here today.
Um... I don't have a quarrantine tank cuz i'm usuing it right now for a pregnant molly.
He seems very lively though, it doesn't seem like there is anything else wrong.
The temperature is at 75
Ich is normally little tiny specks, like salt grains. I don't think it's ich. Fuzziness is likely to be fungus. What are your water stats? If you can figure out that it is something treatable, I would treat this fish in the quarantine tank, leaving the pregnant fish to birth in the main tank.