author: Matthew Graham (@Matthew_Graham)
To date gas costs for maintaining the FLI product have been borne by Index Coop and it’s service providers. This IIP proposes reimbursing gas costs incurred up until the time when future gas costs borne by FLI product holders be reimbursed with COMP tokens from each respective product’s TokenSet vault.
To date, Index Coop and its service providers have spent $146K in gas on ETH2x-FLI and for BTC2x-FLI is not shown on Dune analytics. Having already proposed in a separate discussion transferring future gas costs from Index Coop to FLI holders, in line with all industry standards, this proposal seeks to reimburse Index Coop for gas costs incurred up until when future gas costs borne by FLI product holders.
To date, the FLI products have generated around $500K in COMP tokens, which are now sitting unused in the bothe ETH2x-FLI & BTC2x-FLI contracts. I proposed Index Coop’s gas costs up until the time when future gas costs borne by FLI product holders be reimbursed with COMP tokens from each respective product’s TokenSet vault.
This $500K was generated over the same period as the $146K gas fees were paid, which should give the Coop ample runway to reimburse those gas costs, until the full feature is built out.
The on-chain maintenance costs of the FLI products should have always been borne by the FLI product holder. To date Index Coop has borne these costs and now, we have an opportunity to recover past costs by transferring COMP tokens that have been accumulating within the FLI product to Index Coop.
Upon implementing the upgrade as detailed in IIP-XY: FLI Economic Model Upgrade - Future Gas Costs, all past gas costs amounting to around $146K at time of writing are to be reimbursed with COMP tokens.
All future COMP token allocations and liquidity rewards which are expected to continue being accrued for the next 3 years are to be discussed in a separate forum post as this will form part of a broader fee split discussion. This separate and future conversation will address the developer lift for improving the FLI product technically since launch. There exists the potential to use the COMP rewards to pay for this upgrade should Set Protocol not have the bandwidth to provide the engineering resources.
Index Coop’s gas costs up until the time when future gas costs borne by FLI product holders are reimbursed with COMP tokens from each respective product’s TokenSet vault, ETH2x-FLI & BTC2x-FLI. The COMP tokens are to be transferred to the Index Coop Treasury.
Upon upgrading the FLI contracts, past gas costs incurred by Index Coop are to be reimbursed by transferring the equivalent USD value in COMP tokens from ETH2x-FLI & BTC2x-FLI to the Index Coop treasury.
DO NOT perform any upgrade to the FLI contracts.
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