Overview
Keeping up with the progress in a DAO can be hard work! Our newsletter aims to share what we’ve been up to week by week in the Coop, highlighting progress across products, governance and the Index community as a whole.
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Weekly Summary
$DPI gets sticky
#indexchallenge top 5
Smart Treasury
FLI
A Product Philosophy
Assets under vault: $54.53m (+111%)
Across 1 product: $DPI: $228.19 (+20.6%)
Index token: $7.25 (-5.2%)
Figures correct as of 17th Jan, (7 day change shown in brackets)
$DPI gets sticky
Analysis of our flagship product got underway in earnest this week, with @JDcook looking at token retention (aka hodling) since launch. The graph shows improved retention for each passing month, suggesting that DPI is indeed getting stickier.
@Felix put it a more elegantly,
With each passing month, $DPI retention is improving - demonstrating the increased adoption, understanding of utility, and the decline of mercenary / short-term holders
On a related note thanks to those of you who completed the DPI survey this week, we will also be deep diving that data and combining the insights with JD’s work to form a clearer picture of what makes DPI attractive and what can be improved.
#indexchallenge top 5
With the challenge itself done and dusted, all that remains is to cast your vote to decide the order of the top 5 submissions. Thanks to all who took part by baking, editing, meme-ing and wood-chopping your entries!
Smart Treasury
There is an initial discussion around deploying a balancer pool for our treasury to act as an automated buyback machine.
A relatively new idea, doing this gives a number of benefits to the $INDEX token and helps overcome some open questions within the wider Coop:
Makes treasury holdings more transparent
Increases $INDEX liquidity on the open market
Uses streaming fees to pay for monthly contributor rewards, any surplus automatically buys back $INDEX
Maintains diversification via the pool split (e.g 80%/20%)
Have your say in the forum, and read more on the theory over at Balancer.
FLI - Flexible Leverage Index
Earlier this week the team behind DPI, Pulse inc. jumped on a call with the community to talk through their latest product. To watch or listen back to the Q&A just head here. The Flexible Leverage Index (pronounced fly) is designed to take the hassle out of managing a debt position by offering a unique algorithm that reduces rebalancing needs, gives zero slippage entry/exit and features an emergency deleveraging function for extra safety during black swan events as we saw in March.
FLI will launch initially with an ETH product targeting 2x leverage, some of the finer details are still to be decided as the team work on version 0.1, but you can read more in the proposal post here. The size of the market for this project is potentially very large if we consider the amount of ETH locked into Compound, AAVE and others. That’s before we include the potential to roll out similar products using wBTC, YFI, DPI…
A Product Philosophy
This week also saw a wonderfully penned philosophy from @Punia on the governance forum. Sending a powerful and cohesive message about who the Index Coop is and sparking debate around how we build products to reflect that. The highlight for me was:
We create assets that make finance accessible.
Often we find statements like this are just hot air. But if we take the example of the wallet integrations that are currently being built out, we can bring highly complex and bleeding edge products to within one or two clicks for anyone with a mobile phone and an internet connection. This is massive. It also imbues the Index Coop with a responsibility to condense and package these technically complex products into something that can benefit anyone, anywhere and without restriction. Setting just a small goal for ourselves then…
We always welcome new members to the community, if you like what you see come and join the discussion in our social channels. @darkforestcap