The FLI products have proven to be a lucrative and popular product. It is in the interest of Index Coop and DeFi Pulse to scale this product suite as rapidly as possible. Working with our normal DG1 and DG2 process adds considerable overhead and slows down deployment. If we launch 25 FLI products in 2022, that will require 50 individual snapshot votes. We are already taking steps to streamline FLI governance requirements, but believe that it is in the best interest of all parties to further streamline and formalize this process.
PWG is actively looking for a way to reduce this admin and governance overhead so that we can move more quickly and win the market. This proposal is to create a process to delegate responsibility to a team composed of PWG and DeFi Pulse members to launch products on a per-chain basis.
The recent launch of ETH2x-FLI-P on the Polygon Network is a great demonstration of how well these products will perform on various layer 2 and side-chains. The future of the product range is to scale to as many chains as we can reasonably determine demand exists.
We know we want to launch more, and we know that each product will operate with the same fundamental strategy that has proven safe, secure and popular. Moreso, we have already built and developed the infrastructure to do so. As such, it seems unnecessarily burdensome to navigate the Decision Gate process for each additional product.
PWG proposes the creation of a team including members of PWG and DeFi Pulse that will seek authority to launch further FLI products on a per-chain basis. This will remove the need for a DG1 and DG2 vote. Instead an IIP will be proposed by a member of each team as co-authors, seeking the authority to launch FLI products on that specific chain.
An example would be:
IIP-XX Launch FLI Products on Avalanche Chain
Passing this vote would enable the team to decide on products to launch in line with demand and feasibility, and not constrained by governance and time-gating. In this example, the team would quickly be able to launch 6 products in rapid succession:
AVAX, iAVAX, ETH, iETH, BTC, iBTC
These would make up the total products that are technically feasible and where reasonable demand might exist. As debt markets mature and liquidity deepens on this sidechain, we would be able to quickly launch future AVAX FLIs to meet demand. Over the next several years, this will hugely advantage Index Coop by enabling us to move swiftly and capitalise on opportunities as they arise.
A future FLI launch schedule in 2022 could look like:
A team of FLI product managers (composed of IC and DFP members) will be delegated the authority to seek approval to launch FLI products on a per-chain basis. When the team determines that the FLI suite can be extended to a new chain, a member from each organization will co-author a new IIP to seek delegated authority to schedule FLI launches on that chain. This will be accomplished by a single IIP. Each new approval will not require DG1 and DG2, and will rely on a single vote.
Following a successful vote, Index Coop and DeFi Pulse FLI product managers will have the delegated authority to schedule new FLI products on that chain as they become technically feasible and where reasonable demand can be determined to exist. Any products scheduled under this regime will be agreed upon with input from EWG and the newly formed Liquidity Pod to ensure it integrates with any other existing roadmap.
This delegated authority to act will automatically renew with any major periodic update to Index Coop’s organizational structure. Each time a newly formed Index Council is created, they will retain the right to the decision to end this delegation. If no request to end delegation is received by forum post within 10 days of the formation of the new Index Council, this delegated authority to act will automatically renew until the next Council is formed.
The team will include:
These proposals will bypass much of the Decision Gate process, and give the relevant team the authority to launch FLI products on a given chain autonomously. This is a deviation from our standard product governance process. Therefore the Governance Nest recommends that a higher quorum be instilled for such proposals.
- 10% of all $INDEX in circulating supply must participate in the vote
DO delegate FLI decisions to PWG & DFP as detailed above.
DO NOT change the existing arrangement.
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