Finance Nest - A Thread of Monthly OKR Report Publications

Hi All,

This is a thread where all Index Coop’s Finance Nest where periodic OKR reports are to be published. We encourage everyone to read and share your thoughts in the comments below.

Thank you for taking the time to read the reports and following the success of the community.

@Finance.Nest
Current Contributors: @Matthew_Graham, @ElliottWatts, @prairiefi, @Ahuja and @Hammad1412

Operations Account - November Update

Index Coop’s Ethereum Operations Account was created on the 25th July and didn’t become actively used 14th August when it received 1,750 ETH2x-FLI tokens for BED liquidity. Since then, we have come a long way including a few highlights here for the inaugural post:

  • Redirect FLI revenue: IIP-72
  • Authorizing stablecoin strategies: IIP-79
  • Updating signers: IIP-88, IIP-99
  • Transfer Funding Council assets to Operations Account: IIP-90
  • Authorize Rari Capital strategies: IIP-101
  • Create an Operations Account on Polygon: IIP-111
  • Redirect Simple Indices revenue: IIP-116
  • Adopting Parcel for payroll: Link

At November month-end, the Operations Account held the following:

Asset Quantity $ Price Value
INDEX 73,191.10 15.89 1,162,903.26
USDC 697,693.47 1.00 697,693.47
ETH 119.65 4,636.43 554,753.10
WETH 37.04 4,636.43 171,716.91
ETH2x-FLI 1,858.50 249.69 464,052.83
BTC2x-FLI 986.47 64.01 63,141.24
WBTC 0.16 57,117.09 9,186.56
BED:WETH UniV3 1 Link to pool 292,129.45

OKR Overview

  • Number of Operations Account Transactions: 33 (nonce 22 to 49)
  • Total Index Coop ERC-20 Transactions: 47
  • Number of Operations Account ERC-20 Transactions: 20
  • Number of Operation Account Time Sensitive Transactions: 9 (ETH2x & BTC2x sell transaction + BETA purchase)
  • Percentage of Time Sensitive Operation Account Transactions: 9/33 = 27.3%
  • Number of failed transaction due to insufficient signers: 0
  • Number of successful safety test transaction: 0
  • Number of incorrectly executed transaction: 0
  • Gas Spend during November: Operations Account total 0.7738 ETH, 0.2106 of which was covered by Parcel
  • Number of Days to Process Contributor Rewards: 5
  • Number of Contributor reward disputes per quarter: 1 to date
  • Number of Developer hours utilised by Contributor Reward process: 0

Time Sensitive Transaction Details

Time Sensitive Transaction Start Time Finish Time Duration (min) Transaction Summary
Nonce: 22 8:53:17 PM 9:07:59 PM 14 min 42 sec Swap ETH2xFLI for WETH
Nonce: 33 3:16:41 PM 3:21:56 PM 5 min 15 sec Swap WETH for BETA
Nonce: 34 3:24:58 PM 3:28:03 PM 3 min 5 sec Swap WETH for BETA
Nonce: 35 3:30:59 PM 3:34:06 PM 3 min 7 sec Failed Swap
Nonce: 36 3:38:06 PM 3:43:12 PM 5 min 6 sec Swap WETH for BETA
Nonce: 37 3:45:11 PM 3:47:13 PM 2 min 2 sec Swap ETH2xFLI for WETH
Nonce: 44 9:20:47 PM 9:28:30 PM 7 min 43 sec Swap ETH2xFLI for ETH
Nonce: 45 9:40:11 PM 9:45:45 PM 5 min 34 sec Swap ETH2xFLI for ETH
Nonce: 46 10:02:45 PM 10:04:41 PM 1 min 56 sec Swap BTC2xFLI for ETH

Link to Operations Account Signer Activity (signers, time to execution, gas used, gwei price)

Link to ERC-20 Transaction Recap for November for monitored Index Coop wallets.

One of the goals with the Operations account is to streamline payments activity to a core group, with an emphasis on strong controls and timely processing. We hope to continue to deliver on this element of the Operations Account, while continuing to improve transparency through reporting like this.

Original Post: Finance Nest Community Updates - A Thread - #3 by prairiefi
Contributors: @prairiefi, @Matthew_Graham and @ElliottWatts

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Operations Account - December Update

As we experiment in search of the ideal template for reporting this style of feedback to the community, we have pivoted towards a format more like the Financial One-Pager report.

For December the key takeaways are:

  • USDC has been put to work. Index Coop is now earning BAL rewards in the new Balancer Boosted Pool
  • Polygon Operations Account was created
  • $250K of ETH2x-FLI-P : ETH liquidity was deployed on Sushiswap
  • At the end of December 2021, the Ethereum Operations Account held $2.069M
  • At the end of December 2021, the Polygon Operations Account held $0.468M
  • A quiet month with very few transactions, only two time sensitive transactions
  • Parcel continues to save Index Coop gas costs, 0.7466 ETH during December

Feedback is always welcome and don’t hesitate to ask any questions below.

Report: Index Coop - Operations Report - December 2021 - Final.pdf (106.6 KB)

Contributors: @prairiefi and @Matthew_Graham

3 Likes

Operations Account - January Update

January was a busy month with more than 100 Operations Account transactions!

  • GMI token mint and LP
  • ETH:INDEX Vault with Gamma Strategies
  • Argent / ZigZag Liquidity
  • Ended with $3.5M on Ethereum and $43k on Polygon, not including ~$2.4M transferred to Gamma and Argent

Feedback is always welcome, and more transaction detail is available upon request or by reviewing the Gnosis safe

Report: Index Coop - Operations Report - January 2022 - Final.pdf (108.0 KB)

Report Contributors: @prairiefi @ElliottWatts

Investment Account - January Update

January marks the first monthly report for the investment account. In January, the investment account was funded with stables ($5M). Towards the end of the month, about half of those stables were deployed to productive strategies.

More transactional details are available upon request or by reviewing the Investment account Gnosis safe
Index Coop - Investment Account Report - January 2022 - Glossy.pdf (113.9 KB)

Report Contributors: @Ahuja @Matthew_Graham
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2 Likes

Thank you for this. It’s great to see the funds earning a return. Nice work.

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Operations Account - February Update

February was a quiet month for mainnet transactions as the focus was on Polygon FLI products, with the launch of iETH, iMATIC, and MATIC2x-FLI-P.

Feedback is always welcome, and more transaction detail is available upon request or by reviewing the Gnosis safe
Index Coop - Operations Report - February 2022.pdf (110.6 KB)

Report Contributors: @prairiefi @ElliottWatts @Matthew_Graham

3 Likes

Investment Account - February Update

In February, the investment account maintained its allocation in the strategies employed in January. Later in March, the remaining stables were deployed to productive strategies making all of the $5M in stables deployed.

More transactional details are available upon request or by reviewing the Investment account Gnosis safe

Index Coop - Investment Account Report - February 2022 - Glossy.pdf (117.2 KB)

Contributors: @Ahuja @Matthew_Graham

3 Likes

Operations Account - March Update

Product launch continued this month with BTC FLI products on Polygon and preparations for icETH at month-end, capping a busy month for transactions on the account.

Please share any feedback and as always, you can check Operations Account transaction details on Mainnet and Polygon.

Report Contributors: @prairiefi @ElliottWatts @Hammad1412 @Matthew_Graham

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Investment Account - March Update

At the end of March 2022, there was $5M of stables earning 10.75% in interest and this represents only 71% of the capital held with the Investment Account.

The BAL rewards being earned are to be deposited into veBAL and used to vote BAL rewards across Index Coop product pools on Balancer V2. These product pools are in the early design phases and the Investment Account has been position to support this short to medium growth ambitions. Products like LAYER1 which benefit for BAL Liquidity Mining incentives.

There is a delta neutral Protocol Owned Liquidity (POL) position, where ETH has been borrowed to provide icETH/ETH liquidity. Index Coop is earning low signal digits Return On Investment, yield > costs of capital, on the POL. This is the very first POL position where Index Coop does not have any price risk exposure to the assets held in the POL position. The change in the price of ETH has been successfully hedged.

We also expect future upside on this icETH/ETH liquidity strategy with $SPICE rewards from Arrakis DAO when the DAO launches later this year. We anticipate Index Coop to receive a $SPICE allocation as a partner who uses G-Uni pools and creates revenue for the Arrakis DAO. The $SPICE tokens Index Coop receive will then be locked (veSPICE) and used to vote $SPICE rewards across Index Coop INDEX/Product pools.

With Liquidity being a major financial outlay for IC the ability to use other protocol incentives for future products could drive significant cost savings. The Investment Account is being structured in such a way as it will help solve Index Coop second largest bottle neck, liquidity for our products/INDEX tokens.

A link to download the report:

Index Coop - Investment Account Report - March 2022 - Glossy.pdf (127.3 KB)

Report Contributors: @prairiefi @ElliottWatts @Hammad1412 @Matthew_Graham @Ahuja

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Investment Account - April Update

As of the end of April, all 100% of the capital within the Investment Account is actively deployed. The Investment Account continues to provide Protocol Owned Liquidity (POL) for icETH without having any ETH price exposure. The POL position is generating an income for the DAO independent of market price movements.

The Investment Account holds $6.74m of capital earning 7.01% in BAL and TRIBE rewards. There is also swap fee income and income from the POL position which is not included in the 7.01% figure. We do expect the current allocation of capital to be viewed favourably when the Arrakis DAO launches their SPICE token. This potential upside is speculative and if it eventuates, will enable Index Coop to use the SPICE holding to vote Liquidity Mining across Index Coop product/INDEX pools. We expect this to lead to higher TVL and reduce the DAOs dependency on POL which has absorbed 100% of revenue generated since Index Coop launched on 06/10/2020.

The Balancer Strategy is predicting a yield of 20.92% APY to commence in 2 days time when the next BAL distribution period commences. Meanwhile, the TRIBE strategy is yielding around 17% APY and has been a solid double digit ROI strategy. In June we hope to be reporting an APY > 15% which represents a significant step change to the current ROI being generated.

The strategy for Balancer remains the same as previous months and in the near future we intend to request from the Balancer community the ability to deposit our BAL holding into the VotingEscrow contract to attain veBAL to boost our Balancer Boosted Pool yield APY in the interim whilst Index Coop continues to design a product to be built on Balancer v2.

A link to this months publication:
Investment Account Report - April 2022 .pdf (128.8 KB)

Report Contributors: @prairiefi @ElliottWatts @Hammad1412 @Matthew_Graham

1 Like

Thanks for these reports as always. In terms of calculating runway, we may not want to count $INDEX as a cash equivalent due to its volatility and illiquidity. I am concerned we may have a false perception of runway if we are treating it as such.

Hey Felix,

I think you may have posted this in the wrong forum thread, as the investment account report does not touch on the runway topic. We provide a stabelcoin runway each month in our community update thread, linking the latest one for April Finance Nest Community Updates - A Thread - #7 by Finance.Nest

We do not include INDEX in the calculations.

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