IIP-60: Launching Llama Diversified Index (LDI)

oops

Is the 28th July okay ?

28th July is confirmed.

A slight modification to the time 10:00 PST ( 17:00 UTC).

LDI call (option 2)
Wednesday, July 28 · 6:00 – 7:00pm
Google Meet joining info
Video call link: https://meet.google.com/ijk-bcvj-ozq
Or dial: ‪(GB) +44 20 3937 2049‬ PIN: ‪969 810 742‬#
More phone numbers: https://tel.meet/ijk-bcvj-ozq?pin=6623073400554

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Thank you @Llama for the interesting proposal.

In consideration of the more fund-like nature of LDI (given its relatively generalised scope and stablecoin allocation), could you perhaps elaborate on the reason(s) why is Llama interested in launching LDI not simply as a Set Protocol Set but as an Index Coop Index instead?

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Great idea here @Llama!

I’ve been working with a few DAOs on treasury management and we’ve run into a few issues that might be helpful for you.

Liquidity of “productive assets” is a major hinderance as the size of the portfolio grows. For example ibBTC allocation of 15% and if your portfolio was $2.5m it’s a total value of $375,000 in holdings. A trade of $100,000 has a price impact of 1.51% vs wbtc which has .25% impact. Just the price impact alone could offset any gains in interest without the additional smart contract risk.

This only gets worse as your portfolio grows. I am a huge fan of productive assets but the pros and cons need to be weighed carefully especially when your adding unknown smart contract risk.

My thoughts around DAO treasury management should be centered around the DAO and its needs. Also with something as complex as a DAO choosing the simplest option is usually the best. Creating a portfolio around BED + MVI + DATA + PAY might have a bit more flexibility depending on the DAO’s needs.

Feddas

8 Likes

Hi @gregdocter, @Pepperoni_Joe, @dylan,

Can a snapshot vote for LDI be scheduled for Monday 16th August along with any other particulars needed to advance LDI through the governance process.

Let’s Do It :llama: :owl:

4 Likes