[DRAFT] Production Addition Proposal Process

Introduction

This will be a living document that covers the complete process for getting a structured product supported by the Index Cooperative. Adding new products is the most complex, time consuming and critical part of the Index Coop’s operations. When we get it right we grow the coops AUV, cash flow, and reputation. If we get it wrong we are risking the long term success of the coop. This document is part of the systems that will manage this process.

Many initially joined the Index Coop community with ambitions to launch their own products. We made an initial strategic commitment to focus on just the DPI product and get it to a comfortable level of scale before expanding the scope of products we serviced. Now that we have hit that initial point, and have an expanded vision of the Index Coop outlined (here) [link], some community members are confused and frustrated about the process by which they can participate in the product vision.

This document seeks to provide clarity, criteria, and process by which the community may propose and evaluate certain opportunities. As a community, one of our core values is growth and continuous improvement so we will be iterating on processes here in order to adapt them to the current state of DeFi, improvements in on-chain governance, and the scale of our community.

Process Overview

1. [Optional, but Recommended] A new product idea’s high level specifications and reasoning is proposed and discussed with existing community members.

  • Main discussions here should be oriented around market appeal and feasibility.
  • Such discussions may happen in 1:1 interactions with community members, publicly on the forums and Discord, or any other venue of choice.
  • While this step is optional, it may help the Methodologist save time and help in the construction of a successful application.

2. A Product Addition Application is completed and proposed to the Index Cooperative community in the Governance Forum.

  • The application structure is described in IIP-2 and can be found here.
  • The IIP must be live for 7 days before voting can occur.
  • The methodologist may modify the proposal during discussions.
  • We will host a call for the Methodologist to answer any questions from the community.

3. Decision Gate 1: Snapshot signaling FOR or AGAINST moving forward with Product Vetting Step.

  • Once proposal has been live for at least 7 days the Methodologist can request the start of snapshot voting. This will run for 3 days.
  • Because this is a signaling step to gauge community sentiment, it will not be subject to quorum requirements.

4. Product Vetting Step: All products that pass DG1 are reviewed by Coop teams.

  • Product Development and Business Analysis Work Teams review the proposal in detail with support from the methodologist and assess according to the prioritization rubric.
  • Each team will report progress every week via the weekly governance call.
  • Once each team has committed its review and agreed any modification with the methodologist.
    1. A “Final proposal to launch” will be made by a Coop community member and the methodologist.
    2. This will be a new forum post: “IIP-XX-Final”
    3. This will be the definitive version of the proposal and specify the Snapshot vote dates and a proposed product launch date.
  • If the review teams identify significant blockers that can not be avoided, then the Business and Product teams will recommend a “No” vote on Decision Gate 2.

5. Decision Gate 2: Vote on Product Addition

  • This is the snapshot vote to approve or reject the final product proposal.
  • Signals commitment by the Index Coop to launch the target product in a timely manner.
  • Passing thresholds are 15% quorum and 60% voting FOR

6. Product launch

  • Once DG2 has passed, the coop and methodologist will be expected to work together to launch the product in a timely manner.

Key Links

Prioritization spreadsheet: https://docs.google.com/spreadsheets/d/1chpu_rh4B5o8JbU_tNIACDFGHPAfy320n8hg8m6XMwA/edit#gid=0

IndexCoop Gitbook with more information: https://docs.indexcoop.com/launching-new-products/introduction

Next Steps

Please take time to consider the steps above and what has been mentioned in the Gitbook and comment edits. We hope to get a ratified structure by the end of the week and start onboarding the Coinshares CGCI-LV Index and the Toke Terminal P/S Index through this structure. As well as move forward on the methodologist incentive program.

One thing missing is a process for determining if a product needs to be unwound and how we would go about the process. If anyone has any recommendations for such a structure, please propose it using the forums.

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Something to keep at the back of our minds is: what value can we provide Methodologists if/when the Methodologist rewards are finished? @Kiba brought this up and currently we don’t have anything outlined.

Preserving that moat should be on our mind.

Much needed and fantastic work there. Thank you.

I think that the methodology bonus scheme is a great incentive to attract attention so we have every right to be demanding on and methodologist and proposals.

If you look at collateral onboarding to compound, it expects the applicant to do significant code development BEFORE they apply to be collateral…

As a minimum I would want to see the application explain the smart code contract (even if just so say “Using Set protocols as existing products” or “Using a balancer pool”.

And we need to understand whether the applicant will deliver initial liquidity, or would request support from the coop (e.g. liquidity mining).

We also need to have a feel for how many indices we plan to launch in a given period. Other protocols are applying a shot gun approach and launching a new product every week). I feel that this is too fast and we should be focused on quality and market fit.

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For the methodologist rewards, I would expect all proposals to include a discussion on the fee structure and part of the fees to goto the methodologist

The methodologist bonus is intended to kickstart our growth and attract methodologist. Long term fees from the fund should be sufficient reward.

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