Reposting now that it is a bit more thought out and after speaking with more members + Pulse, also with a diagram in case there are other visual learners like myself (I apologize for the bad handwriting).
Goal: Keep the main DPI product vanilla, regulator/CEX exchange safe, while providing the more adventurous a way to benefit from the intrinsic productivity in the DPI assets.
Sub-goals: Make a repeatable process for other IndexCoop Products (MVI etc). Empower INDEX holders to decide the balance of return vs. metagoverance power, allow the IndexCoop to make DeFi partnerships to externalize yield decisions (Yearn, Harvest, etc).
Proposal: create a vault controlled by IndexCoop (temp name: iDPI) that allows the deposit of DPI for iDPI, and redemption of iDPI for original DPI deposit, plus yield (in DPI).
This vault will keep a percentage of deposits in DPI to handle redemptions (10% using the number from above). The other 90% will be unwrapped into their components, which will be put to work (ex: YFI → yvYFI).
As for the streaming fee. The 10% that is held in DPI is already handled by the existing DPI streaming fee. As for the remaining 90% that is put out to farm, a portion is periodically streamed (same percentage) to Pulse/IndexCoop. This has the added benefit of diversifying the treasury should we take the streaming in its unwrapped form. The split can be the same or changed since INDEX is running the vault.
Lastly, as for Market Cap, this obviously complicates the calculation. Proposing a new metric, “DPI Family Market Cap” (DPI Market Cap + iDPI Market Cap)
A few benefits I want to stress:
- Regulator/CEX friendly. “vanilla” DPI isn’t touched. If yield is allowed in your jurisdiction you can opt-in.
- Added risk of the yield is taken on only by those seeking yield (opt-in).
- Very beneficial for the IndexCoop, the ability to seek out partnerships with the vaults, and a way to diversify treasury.
- Repeatable Strategy for future products (engineering effort hopefully is high upfront cost once, and can be deployed for MVI or other future products)
more than happy to work with @Kiba or anyone else working on this. would love to see something built so we can cut off this line of attack on our product without jeopardizing the nice simple investor-friendly vanilla nature of DPI.