IC Multichain Strategy - Community Call Revisions

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Title: IC Multichain Strategy - Community Call Revisions

Channel: #business-development
Authors: @oneski22 [Discord: @TrotNixonLine], @Mringz, @BigSky7

Thank you everyone for coming to the Multichain Community Call. The BD Team hopes to do more of these to have the full Index Coop Community drive strategic decisions while the various working groups execute on the operational ones. Based on your ideas, comments, suggestions, and feedback we propose the following.

TL;DR:

  • Enable Index Coop products to go on other chains (Polygon, BSC, Fantom, xDAI and Arbitrum).

  • Setup a DPI/ETH pool on Polygon seek partnership with Polygon (MATIC) and open up an RFP for DPI exclusivity to the 2 major DEXs (QuickSwap and SushiSwap). Liquidity mining target: $10MM, TBD APY.

  • Update analytics dashboards to include other chains.

  • Research updating Snapshot to allow votes from other chains.

  • Update product launch checklist to include setting up bridges to supported chains pre-launch (Polygon) and work to set up bridges to all chains shortly after launch.

  • Mint/Redeem stays on L1 Ethereum.

Context: [See original post]

Hypothesis:

Our first experiment to launch our L2 strategy will be to increase liquidity for the DPI/WETH liquidity pool on a Polygon DEX (Quickswap/Sushiswap) by launching a liquidity mining campaign that rewards INDEX along with either QUICK or SUSHI.

Proposed Actions:

We see an opportunity to launch an incentivized pool on the largest DeFi chain outside of Ethereum L1, Polygon (MATIC). As well as begin the necessary infrastructure upgrades for Index Coop to be prepared for the multichain world to come.

We are proposing the following actions:

  • Establish bridges to EVM compatible chains (Polygon, xDAI, BSC, Fantom)
  • Incentivized DPI / ETH Pool on MATIC
    • $10MM target liquidity, TBD APY
  • The BD Team will begin exploring partnership opportunities to have an incentivized ETH2x-FLI / ETH pool on Arbitrum shortly after launch.
  • Seek a partnership with Polygon to incentivize DPI/ETH Pool with MATIC Rewards and establish bridges to Polygon (MATIC) for all current and future Index Coop Products.
  • Seek a partnership with multichain.xyz to establish bridges to BSC, xDAI and Fantom for all existing and future Index Coop Products.
  • Begin research into enabling snapshot voting with Index on MATIC, BSC, Fantom and xDAI.
  • Begin updating our analytics dashboards to include Index products on other chains to gather data and better inform our strategy going forward.
  • Keep Mint/Redeem functionality exclusively on L1 Ethereum

Way Forward:

We are requesting a loan of $150,000 from the BD Multisig to seed the Polygon pool, which we will remove once liquidity goals are met, and return to the BD Multisig with the trading fees going back to the BD Multisig and/or Treasury.

We will propose liquid mining campaigns for the pools based on information and data from our previous campaigns as well as recommendations from the product working group.

Consult with the development group around the technical requirements and safety considerations before launching ETH2X-FLI on L2 chains.

Conclusion:

This is all to build the underlying infrastructure to allow the Coop to be nimble as L2s and side chains continue to grow, as well as set up small experiments to allow us to gather data for a more long-term multi-chain strategy.

Is there anything we might be missing?

Let us know in the comments.

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There is a lot of press around Polygon at the moment and a couple of items cut through. There seems to be a multisig with indiscriminate power over the smart contracts that only requires two founders to activate but that can probably be changed in a few days.
Polygon multisig

The other item is that Polygon was an IEO (10% of total supply) on binance and ca 32% of the total supply is staked and delegated to one of binance’s nodes. I don’t know how relevant the governance process is but that’s a huge amount of voting power.

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Matic staking

Even though I can’t articulate specific risk scenarios I don’t want to be reliant on binance’s integrity and resilience to regulatory risk.

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While we need to keep an eye on such considerations, I suspect that the market will gravitate towards:
Large trades / holdings - L1
Mid Trades on rollups
Smaller trades / holdings on side chains (Polygon, BSC, etc).

Persoanlly, I’m happy to be active on polygon, but have never touched BSC. I think many of the more cautious traders (and protocols) are doing similar.

So, I’m happy for the coop to try and incentivise some liquidity to polygon, with the expectation that we’ll likely do similar for the roll ups as they come available.

What we should also be doing is help educate token holders / LP’s as to the security considerations for each option as they come available.

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I’m very in favor of this as a whole. Given Index Coop and DPI are all ETH based, I strongly favor prioritizing the most ETH aligned projects both in terms of which bridges are built first and which pools are most strongly incentivized. With rollups already going live for developers and around the corner for users, I think priority goes: Rollups → Polygon → Fantom → BSC etc.

I am still in favor of supporting DPI on chains like BSC and even places like Solana, but with the lowest priority. Same thing with INDEX incentivized pools, Rollups>Polygon>BSC. Obviously with the one asterisk that Polygon is live and Rollups are aren’t yet.

SushiSwap seems like kind of an ideal partner given how aggressively they’ve been going multi-chain. We could partner with them for pools on L1, Arbitrum, Polygon, Fantom, BSC, etc.

Ideally, nearly all DPI activity will be on L2s by the end of the year.

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fyi - maker dao is having a similar discussion internally about their multi chain future. worth referring to their discussions here, some things are quite relevant A Multichain Strategy and Roadmap for Maker - Governance - The Maker Forum

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Hi, I am in favour for cross chain… though i’m also curious as to the roadmap in regards to Cardano. Is that also in the timeline? As I notice there wasn’t any mention of it.

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What can we do on Cardano today?

We sell crypto structured products - to my knowledge, there’s no place on Cardano, no DEX or other type of exchange, where we can list and sell our products.

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Today, as for now. There isn’t smart contract yet. So we can’t really do anything.

Thus my question is whether there is something in the pipeline once Cardano release their smart contract?

or perhaps is there research done internally into rolling out our products in their chain once it release. As I believe you can start experimenting on their tokenomics on their testnet. Just a thought though.

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Hi @pujimak_in our present strategy is to allow the various IC tokens to travel anywhere should a sufficient bridge exist. IC will pursue DEX/DeFi relationships where we see sufficient demand / usage for the product.

There are other non-EVM chains that are in the process of allowing ERC-20 tokens to be bridged and have offered to build a bridge for DPI, with zero expectation of full fledged support (in the way we are proposing for polygon).

If Cardano has smart contracts and a bridging solution I don’t see any harm in allowing DPI and other IC products to travel to that chain, however I don’t see the Coop running a LM program or establishing other major relationships until we see actual usage and a real ecosystem over there.

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