IIP-101: Authorize the Operations Account for Rari Capital Strategies

iip: 101
title: Authorize the Investment Account for Rari Capital Strategies
status: Proposed
author: @Finance.Nest
created: 31/10/2021

Simple Summary

This IIP includes two amendments to Index Coop finances. The first is to transfer DPI held within the Treasury to the Operations Account.

The second is to enable the Operations Account to interact with Rari Capital by authorizing the Finance Nest (FN) to deposit assets held within the Operations Account into Rari Capital.

Treasury: β€˜0x9467cfADC9DE245010dF95Ec6a585A506A8ad5FC’
Operations Account: β€˜0xFafd604d1CC8b6B3B6CC859cF80Fd902972371C1’

The Treasury holds ~$600K of DPI at the time of writing.


IIP-70 authorized depositing $500K of USDC reserves into the Operations Account. Per the Stablecoin Asset Management Guidelines, the FN recommends these funds be made productive. In order to actively manage these reserves, this IIP will authorize the FN to deposit and withdraw assets into Rari Capital freely in line with the stated guidelines.

We expect DPI to become a productive asset with various protocols like Aave V2 and Rari Capital offering incentives. Rari Capital is teasing LM in their discord and Aave V2 liquidity mining rewards are expected to be replenished during November which may, or may not, include DPI.

Having this blanket authority will allow the FN to act nimbly when managing the liquidity of the Operations Account as market conditions or the state of the Index Coop’s operations evolve.


The Operations Account presently has the ability to deposit stablecoin held within the Operations Account into Aave, Balancer, Compound, and/or PoolTogether. This proposal seeks to extend this to include DPI, as well as adding the lending protocols Rari Capital to the list of protocols the FN can deposit and withdraw from.

The FN seeks to deploy assets held within the Operations Account productively across a number of protocols in order to earn income for the Index Coop.


Overview and Rationale

The FN recommends adding Rari Capital to the list of protocols that Index Coop can earn yield on assets from within the Operations Account. The rationale is detailed within each section.

Rari Capital

The Rari Fuse pools are forks of the Compound code base and although they hold around $1B in funds, the contracts at Compound are well battle tested and are also in use by Cream. Rari offers two yield aggregator products, for USDC and DAI, that aggregate yield across the Fuse pools. The current ROI is just beneath 20% and represents the yield of depositing across multiple fuse pools. This becomes increasingly more lucrative if Rari Capital was to offer Liquidity Mining rewards. Index Coop already has an existing relationship with Rari Capital having founded Fuse pool 19 together. The FN may seek to accrue RGT for additional meta-governance power for the INDEX token or sell for current income.

DPI from Treasury to the Operations Account

Transferring DPI to the Operations Account enables the assets to be put to productive use. Currently, DPI is held within the Treasury wallet and is not earning any yield for Index Coop.

Technical Specification

Rari Capital is accessible from Gnosis Safe via Wallet Connect and no technical work is required.



DO authorize the FN to use Rari Capital in the Operations Account and DO transfer all DPI from the Treasury to the Operations Account.


DO NOT authorise the FN to use Rari Capital in the Operations Account and DO NOT transfer DPI from the Treasury to the Operations Account.


Copyright and related rights waived via CC0.


Strongly supportive of this IIP.

Disclosure: I hold RGT, and am a declared delegate.


Hi @mel.eth, @Mringz, @sixtykeys,

May I request an IIP number and schedule voting for Monday 8th November 2021.

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@Matthew_Graham From my understanding, none of the proposed methods for making DPI productive have currently been confirmed. Any back up plans in case both Rari and Aave don’t provide incentives for DPI?

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An IIP number has been assigned (101), will update this post with a snapshot link as soon as it is queued.

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Hi @sixtykeys

We would probably just hold the DPI in the Operations Wallet until we have a use for it.

The below proposal is well progressed. We have some key stakeholders supporting a variation of the original proposal.


This IIP has been queued to go live on 8th November 2021, 1800 UTC.
Snapshot here

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Confirming that this IIP has passed with 284.54k INDEX (92.58%) voting FOR. :white_check_mark:

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