An Expanded Vision of Index Coop

Hi all, happy to join the discussion. A couple thoughts here -

On product - As the entire crypto space develops, I don’t think many people seeing one chain winning out completely above the others. With interoperatibility coming, the more likely scenario is an ecosystem of various chains all working together to do what they’re best at, a classic division of labor.

In that scenario, in addition to the sectors TGT mentioned above, it allows for baskets consisting of the main coin (ETH, DOT, ADA, etc…) plus its strongest on-chain assets. In discussions with those less familiar with the crypto space, the amount of projects out there can be overwhelming especially when you dive into the projects on Ethereum or on PolkaDot when they have just scraped the surface of the main token.

With further adoption will come everyone’s favorite topic - regulation. In my experience when the regulators do come knocking they appreciate those who have been proactive and with recent developments (DoJ report, CFTC guidance on margin etc…) it might be smart to begin thinking about it, especially if we’re talking about eventual adoption of crypto-indices into people’s retirement accounts.

Basically, it may be prudent to begin producing a detailed but easily digestible quarterly report describing performance of the DPI (and any future potential indices) as well as a description of each of the underlying tokens, new developments about those tokens and their historical performance. This would help people get a brief understanding of the index without having to spend hours doing research. The language could even be voted on by INDEX holders. As time goes on, having something like these easily accessible would also help boost the Coop’s credibility and legitimacy in the eyes of the general public, as well as regulators.

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Strong introduction!

Great ideas

I’m late to the discussion. This is very exciting and exactly what crypto needs to get more mainstream adoption. As a community we have a really huge responsibility in guiding the market to invest in the most valuable projects that will have a lasting impact in the long term.

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Just wondering, does the push to list DPI and other indexes on CeFi exchanges also include INDEX itself? IMO any exchange that does list index cooperative’s products should also list INDEX. It makes sense.

We actually have more CEX listings for INDEX than DPI. INDEX is a much simpler concept for CEX compliance to understand. However, it’s is significantly much smaller market cap than DPI.

completely agree with @Gabriel’s support of the idea of a volatility index, also opens up possibilities of moving onto a volatility based product offering (if/when the current derivative markets could support the requisite liquidity for rebalancing a basket of options regularly). As a core idea it would be very impactful, volatility as an asset class has become huge over time in TradFi and I can only imagine the same will be true for DeFi

Hi @setoshi, just re-reading this post. Exciting stuff

Just made me think of this infographic…

And thats just ETF’s! :sunglasses:

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Before we get to volatility, can I ask what we might do for a bear market product that will let retail go short on baskets of over-incentivised shit coins and non-utility tokens, as well as seemingly immortal ghost forks (and we all know who they are). I am not an expert but something like an investment pool that systematically borrows junk with no conceivable bull case, sells it for stable yield (our own SYI?) and auto-manages all the collaterised positions with the maximum bear outlook these tokens truly deserve. This product would be uncorrelated with our bullish products, and provide retail a place to go in bear markets. We could launch it when things start to turn down. It would also be tons of fun to manage as a group…