IIP-60: Launching Llama Diversified Index (LDI)

Governance Proposal
8

Hi @Thomas_Hepner

Thank you for the feedback. We will try to answer all of these questions as best we can.

Responses:

  1. Llama is already in discussions with various entities about LDI. Although these discussions are at early stages, Llama has identified investors willing to invest into LDI.
    Llama is excited and looking forward to working with Index Coop’s BD team to help grow LDI as we believe the initial capital is a good indication of product market fit.

  2. LDI is not a market cap weighted product. LDI contains tactical allocation and risk optimised return driven position sizing.

  3. The name of the product will include Llama for branding and marketing purposes. The Llama brand will be linked to the success of this product much the same way as DeFi Pulse is linked to the success of DPI. LDI is a Diversified product and is appealing to all types of investors. Llama believes partnering with Index Coop will further strength the branding around LDI and also broaden the reach of the product. There is no desire to change the name.

  4. NA

  5. PAY is a more complicated product relative to DPI, MVI or DATA and harder to replicate. PAY is an ERC20 token and all of the compounding benefits are built into the price - these are ideal qualities for inclusion in LDI. However, Llama can reassign the cash allocation within LDI to a different asset.
    Llama did look at including DPI, MVI and DATA. Our analysis indicated the risk optimised return analysis methodology leads to higher returns over time.

  6. The LDI design utilises productive iterations wherever possible. Similar to the overall tactical allocation, this is by design and intended to be a feature of the product.

  7. Llama would like to have LDI trading within 6-8 weeks. Llama is looking forward to entering commercial discussions after DG1.

Llama would like to develop an open, transparent and mutually beneficial relationship with Index Coop community. Llama has strong working relationships across DeFi which will help support distribution efforts and integrating LDI into other protocols. Llama is also able to assist with rebalancing, integrations with Aave and Compound etc… which require developer lift. In a broader context, Llama is able to share the developer workload needed to support the product.

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