Idea 1: Coordinated DPI Ecosystem Treasury Diversification
File this under longest-of-shots, or shared-pie-in-the-sky . . .
If there were an appetite among all or most of the component DPI protocols/DAOs to diversify their treasuries at the same time using DPI, the Coop could facilitate a multi-token swap whereby each DAO sends their native governance token to a contract (in proportion to % allocation within DPI), and (once all are in) it would mint and return a commensurate amount of DPI to each DAO. This solves the problem of placing downward pressure on token prices by swapping individually.
Considerations:
Would need to buy tokens for any non-contributing DAO using the contributed gov tokens - complicating the transaction should not all DAOs be on-board. A critical-mass of the large component DAOs would need to participate to get over 90% participation by MC (UNI, AAVE, MKR, COMP, SNX, SUSHI, YFI).
Getting some type on consensus on the amount that each DAO would be willing to contribute would be a cat-herding process that could break down pretty easily; however, because of the way DPI allocates (by MC with a fixed cap) the amount that each would need to contribute breaks down pretty nicely among the components:
By way of example, If UNI were interested in a $100MM swap, MTA’s equitable share would be ~$500,000. Given the size of most treasuries these should be be relatively easy lifts for those protocols and most in-between . . . and would equate to a $425MM increase in DPI AUM, or over 300%.
There’s a lot to consider here, but if the collective appetite exists a process could be roughed out to determine allocation amounts and the rest is just a math problem.
This could be considered for MVI components as well.
Idea 2: Index Cooperative Treasury Swap Desk
I believe The Coop is uniquely positioned to spin-up a treasury swap desk to facilitate DAO-to-DAO (D2D) treasury transactions (direct treasury swaps). I think that a DAO-run initiative would be preferable to say an off-chain market maker or OTC desk, and The Coop likely has more D2D relationships than most other DAOs.
#1 does sound like a bitch to coordinate but would be epic, maybe Coop uses the treasury to fill any gaps in the deal. We’d have to execute pretty fast once we want to close because in under 1 month the rebalance will change everyone’s contributions and the deal we setup might not work anymore.
#2 also sounds like an interesting service for us to run given our BD prowess and our DAO treasury clientele. Idk how needed it is today but in general I def support the idea.
I really like it - if we can set this up as a monthly allocation from each of the component DAO’s even better.
I wonder if we could work with Llama DAO ( @HelloShreyas ) to flesh this out and partner with them to make it happen. If we could get each component to set up a monthly $1-$5 million DPI buy that would be MASSIVE for our protocol.
This is the kind of out-side the box thinking we need in Index Coop BD. These kinds of initiatives have the potential to truly move the needle when it comes to AUM.
I like the idea, shows the co-operation between DAO’s, helps DAOs diversify and grows our AUM.
DPI is currently ~0.75% of each protocols circulating supply, so if we got a 0.05% of each tokens supply then we would grow DPI by 7% and get loads of publicity.
Rather than using an outside organisation I would elan on the different protocol ambassadors we are developing.
I see two potential challenges:
Some protocols don’t have huge treasuries to diversify
It’s a huge lift to make a proposal to all of them and passed their governance with co-ordination to buy the same amount.
Overall, I wonder if there are more effective ways to spend our time
No idea on feasibility here but like a multi-ingredient piedoa oven made up of all the tokens that once reaches a certain threshold will mint DPI, send back to the relevant protocols + any surplus native gov token. Very interesting idea indeed.
