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 products, governance and the Index community as a whole.
For more information and to get involved please visit our:
Website: https://www.indexcoop.com/
Medium: https://medium.com/indexcoop
Discord: https://discord.gg/8EMHtFndMN
Twitter: https://twitter.com/indexcoop
Weekly Summary
October Update
Maker collateral application
Yearn strategy initial proposal
AAVE proposal to include Set Market with DPI
Coinshares Index
$DPI Productivity + Treasury Tokens
Purple is the new Blue
Assets under vault: $22.67m (+38.7%)
Across 1 product: $DPI - $94.00 (+28.8%)
Index token: $7.70 (+165%)
Figures correct as of 15th Nov, (7 day change shown in brackets)
October Update
Index community member @kibagateaux pulled together a piece covering everything the Coop achieved in October. A lot of stuff in the update wasn’t in the newsletter as it only kicked off last week, so go check it out!
Maker Collateral
One of the current goals of Index Coop is to increase the Assets Under Vault (AUV) for our first product, DPI, aiming to hold 1% share in the underlying protocol tokens. One way to do this is to take the token beyond just ‘buy and hold’, and enable use on lending protocols. The community, headed up by @OverAnalyser submitted an application which will allow DPI holders to deposit their tokens to mint DAI, freeing up capital while still maintaining exposure to the DeFi index.
The application is currently halfway through a two week window for community comments, and is being discussed here. There is a call scheduled for next week where Index Coop members will present and answer any questions.
Sounds pretty good right? This is just step one…
Yearn Vault
If you like to earn money on your money you’ve heard of Yearn. If you haven’t, it’s a protocol for automatically harvesting the best yields in DeFi across multiple assets. Getting the DPI token added as collateral on Maker has the wonderful side-effect of allowing for a Yearn Vault strategy to deposit DPI, mint DAI… actually I’ll just let Coop member @GabrielHaines explain:
So it’s pretty simple really. You can discuss and vote on the proposal here, feedback has been positive so far but it does rely on DPI being added to Maker first.
AAVE Proposal
Not satisfied working with just two other protocols, the Set team (who kickstarted Index Coop) have this week proposed adding DPI as collateral on AAVE, as part of a wider Set Protocol Market to come in future.
The proposal is brand new and in the discussion phase, we encourage any lurking Aavengers to get involved with pushing it forward and have your say.
Coinshares Index
On Thursday @Michael Petch took the time to present the Gold and Cryptoassets Lite Version (CGCI-LV) index to the community. Highlights include:
Coinshares being one of the largest crypto asset managers in the world, with existing benchmark regulated products already available in Europe
CGCI index initially constructed after conducting research with Imperial College London, designed to maximise risk adjusted returns
Looking to expand passive investment business into DeFi, impressed with the Index Coop so far with management and marketing of DPI
Directly addressed community questions with regards to liquidity for the underlying assets and go-to-market plan
Further announcements are due in the next week so keep your eyes peeled
The initial proposal is still open for discussion in the Index Coop forum if you’d like to get caught up or add any thoughts.
$DPI Productivity + $Index Tokens
With DPI/ETH liquidity mining due to end in 3 weeks, conversations in the Coop have turned to $index reward distribution and how to maximise the productivity of the DPI token for long term holders.
Current and proposed index distribution
Call for new ways to distribute the tokens
New data relating to DPI fee model
There are a number of different ideas being put forward and the community is always looking for more. Are you a DPI holder or Liquidity Provider? Just holding $index tokens and excited to be a part of the Coop? The more perspectives the better.
There are two core goals we keep in mind when deciding what to do with treasury tokens and income from $DPI fees:
Increase DPI Assets Under Vault, target holding 1% supply of underlying tokens
Further distribution of $index tokens
The easiest way to get involved in the decision making is to cast your vote in the forum polls and join the next community call, you can find the details in Discord.
Purple is the new Blue
Big week across the board for Index Coop as a whole, with DPI in particular up 28%. While your favourite influencers and capital allocators continue to shill the ‘Blue Chip’ tokens as the ones to buy, DPI holds most of them already.
We always welcome new members to the community, if you like what you see come and join the discussion in our social channels. @darkforestcap