DPI Product call 27Jan21 - Analysis, IIP-14 for extended liquidity mining and KPI's

OK, This is a summary of the slide deck and discussions from the call on the 27 with some updated analytics. The deck can be found here: DPI product call 27Jan21 - Google Slides

Analysis of DPI circulation
First there was some analysis of the number of $DPI issued and what proportion is in the UNISWAP pool:

This is weekly data recorded every Sunday:

It’s really telling a familiar story in terms of DPI circulation and the pool depth from dune analytics. Adding the INDEX reward rate, and coingecko prices lets use see the reward rate

(Note, the actual staking reward rate will be higher as I’ve assumed that all Uniswap LPs are staked in the coop contract. In reality some are not staked, and some have been staked in other contracts, at the moment 94% of UNI LP tokens are farming INDEX, so it’s close enough for a broad brush)

Ongoing $DPI Liquidity mining

There are multiple liquidity mining programmes running that use $DPI.

Two of these pools are currently incentivised by INDEXcoop. The largest Uniswap pool and a smaller pool on Loopring. (The Alpha farms are farming the INDEX rewards from the coop, and I think the DPI:LINK pool is double counted)

The coop Uniswap programme will end on the 7th Feb, and there is a proposal to extend for a further 30 days using the same contract, but reducing the rewards by 50% to 1,250 per day.

The loopring pool is half way through a 14 day programme with a total of 2,000 INDEX assigned (143 per day). This has created a small pool (~$2.2 M), with the 6th largest trading volume on L2 (and the largest pool that isn’t ETH / LRC / Stablecoin).
We also see ~$110,000 of DPI on loopring sitting outside the AMM pool.

Discussions on Liquidity mining
During the meeting there was a lengthy discussion on the liquidity mining. This included:

  • What size of Uniswap, pool should we target?
  • Will the exchange issue module allow us to reduce the size of the Uniswap pool target?
    *General agreement that IIP-14 for continued farming with reduced rewards was in the right direction.
  • Whether we should plan a hard stop on the Uniswap pool at the start of March, or continue to taper.
  • Should we transfer some of the IIP-14 rewards to Sushiswap Onsen to produce additional rewards. Building our relationship with Sushi was seen as good, and the INDEX Onsen pool has been very useful in building INDEX liquidity.
  • However, does multiple smaller pools benefit users. There may be benefits as aggregators can take advantage in differences in prices, but a single large pool may be more reassuring to larger DPI holders.
  • What proportion of wallets are tied to Uniswap / can use aggregators.

DPI user and retention analysis
This was just a brief summary of JD’s work:

DPI token transfers
This was just a quick summary of OA’s blog:

Draft KPI’s
OA shared a set of Draft KPIs for $DPI as a product with some back dated data for comparison:

The road to 1%is a nice meme (i.e. ownership of 1% of the underlying tokens), but it will become more difficult as more tokens are added to the index.

Sustained Productivity
Extrinsic productivity with Maker and AAVE vaults is still progressing, but not imminent.
The Cream vault is slowly crowing with ~~1.5% of DPI sitting in it (~$1.3 M).

Intrinsic productivity has taken a backseat while the Devs work on new products etc. The next stage is a formal spec / white paper.

I think that’s about it.