Overview
Keeping up with the progress in a DAO can be hard work! This newsletter aims to share what we’ve been up to week by week in the Coop, highlighting progress across the products, governance and the Index community as a whole.
For more information and to get involved please visit:
Website: https://www.indexcoop.com/
Medium: https://medium.com/indexcoop
Discord: https://discord.gg/8EMHtFndMN
Twitter: https://twitter.com/indexcoop
Weekly Summary
First community podcast between Gabriel Haines and Over Analyser
Speaking of Over Analyser, he recently dropped his latest piece on medium, dive in here
IIP 004 - Create a treasury committee
IIP 005 - Trustless Rebalance Process
IIP 007 - CoinShares Gold and Cryptoassets Index Lite Version (CGCI-LV)
IIP 008 - Meta Governance Module
Buffet on buying the dpi
Assets under vault: $16.34m
Across 1 product: $DPI - $77.39 (+24.2%)
Index token: $3.05 (+23.1%)
Figures correct as of 8th Nov, (7 day change shown in brackets)
First Community Podcast
Content creator and avid Coop member Gabriel Haines sat down with resident wise owl Over Analyser to talk Invesments, ETFs and of course about the DeFi Pulse Index. Check it out!
More from Over Analyser
One of the most prolific members of the Coop when it comes to putting his thoughts out there, OA published a piece on Index Funds as Productive Assets this week. It’s important to us because at the Coop we want to maximise the productivity of our Index offerings and benefit holders in return. We have a great opportunity working with digital assets to do things that traditional index funds cannot.
The options for $DPI can be divided between having intrinsic or extrinsic productivity, which basically just means using the tokens within the index to increase returns (staking YFI, AAVE etc), or using the whole index token itself, for example as collateral on a lending platform (CREAM currently 5%). This prompted further discussion on the discourse forum with another idea to use $index tokens as a risk backstop. Jump into the conversation if you have any thoughts on how we can improve either token’s productivity.
Treasury Committee
It was a busy week for moving the Coop forward with improvement proposals. IIP 004 addressed the need to reward contributors for their first month of effort with a plan to continuously reward future contributions. An initial amount of 10,000 Index tokens was spread across the first 3 months was put forward. The IIP used Yearn and Synthetix as examples of how to reward active community members, even laying out a roadmap to go from a treasury committee to using objective measures like SourceCred in the future.
Rewards were given out for tweeting, writing blogs, attending the community calls and all sorts in between. Thanks to everyone who got involved and is helping to grow Index Coop.
Trustless Rebalance Process
In a major step toward becoming a decentralised index cooperative, IIP 005 migrated ownership of the DeFi Pulse Index rebalance mechanism to a new ‘manager contract’, splitting functionality between methodologists and the Index Coop. This was done to reduce the chance of improper behaviour as the whole process was initially controlled by the Index Coop multisig. Having voted on and passed the IIP, from now on methodologists will publish index token weights, and the Coop is responsible for verifying these weights, converting them, submitting them and finally executing the rebalance via the new module.
Not long after the vote was passed, IIP 006 was published with the first set of proposed parameters for the November rebalance. This vote also passed and the rebalance occurred on 5th November, really a major milestone and very early in the formation of the Coop which is great to see.
Coinshares Index
Coinshares came forward this week to propose a new index, a ‘lite’ version of their existing Gold and Cryptoassets Index. The CGCI-LV index would consist of wBTC, wETH and wDGLD and is designed to improve risk adjusted returns compared to holding gold or crypto assets alone.
The team are scheduling a Q&A session for either 12th or 13th November 9am PST, keep an eye out in the Discord for confirmation. A second index would be an exciting step for the Coop, especially one that is quite different in function to $DPI, and Coinshares have certainly done their research.
Meta Governance Module
A proposal to allow $index holders to take part in Compound, Uniswap and AAVE governance voting has been put forward.
IIP 008 is a first attempt at leveraging the substantial portion of assets held in the DPI index for more than just financial gain. Adding the governance module will allow a duplicate vote to be held on the $index snapshot page, and provided quorum is reached (5%, ending 24hrs earlier than underlying vote), the Index Coop multisig will use the asset held within DPI to vote For/Against based on the result of the $index vote.
One of the more subtle effects of this proposal is the influence it will give the Index community. As we grow the Assets Under Vault for products like DPI, $index token holders will start to have significant voting weight in the underlying protocols. This can help us move forward with integrations and win-win decision making with these other teams and communities. It also increases the value proposition for holding Index tokens and taking part in Index Coop governance more generally.
DPI DIP
I hope you listened to Warren when he advised buying the dpi, $DPI is up roughly 25% since then. Not financial advice of course…
We always welcome new members to the community, if you like what you see come and join the discussion in our social channels. Hoot hoot!