IIP-89: Launch Polygon Diversified Index (PDI)

Governance Proposal
21

@mel.eth can I have an IIP number assigned to this. Will not be conducting the IIP process for this product because of my involvement in the product.

cc: @sixtykeys

3 Likes
22

Hey @mringz, an IIP number has been assigned, do you have a preferred date as to when you would like this to go to snapshot?

1 Like
24

OK, the video from Friday is here:

https://drive.google.com/file/d/1FuyEYwDnFpfGxaA7SfjQpwNUOheUJROb/view

1 Like
25

@sixtykeys Please queue this for snapshot today. Would like it to got for vote Wednesday.

2 Likes
26

Decision Gate 1 of this vote is now live on snapshot

Vote here: Snapshot

1 Like
27

Still baffled by how you guys handled and then addressed removing telcoin from the index. The presentation deck shows that the backlash from the community was a “challenge”. It honestly seems like the real challenge was doing accurate research on the project which is very concerning if your fundamental role in building indexes is research.

Was bullish on this project but after how this was conducted I would strongly recommend against it. The lack of attention paid to the facts on telcoin leading to you unilaterally removing it from the index (was largest position then completely removed) speaks volumes.

2 Likes
28

Hey @D4O

Apologies, that you feel that way. I was in the telegram group and was monitoring tweets from the community on Twitter and there was a lot of dissatisfaction towards the move. So yes it was a challenge to address as many people were unhappy so we have to really think hard about how we addressed the community. And some of the steps we took like directly engaging with Park Span and entering in the telegram to the community were some of the steps we took to address the situation.

Apologies again, the reason Telcoin had such a large position in the previous Index was because of the Market-cap weighted methodology and we changed from it to reduce the risk profile of the index. We have had conversations with Parker and informed the community that the remove from the initial composition does not mean that mean we won’t include it at a later stage. We rebalance the Index monthly so projects will be added and removed. Also this is a long process to implement a product within Index Coop so alterations to the Index will be happening as we explore with the Product Team the feasibility of the Product.

1 Like
29

Hi, newbie here who is just trying to understand things better. How do the product designers take into account the user education part of this? How would the users interact with it and who could they go to in case of any questions?
Thank you

2 Likes
30

Love this product and discussion, as a big Polygon ecosystem believer I actually have bought a stake in INDEX after seeing how these index’s are researched and decided on so throughly.

Using the analysis provided above I do have a few tweaks I will propose once the index goes live.

  1. Multi Chain DeFi projects with high correlation be reduced
  • SUSHI, BAL, AAVE, LINK and KNC are all large DeFI projects with greater than 0.65 correlation to each other. The inclusion of these projects at a 15% allocations (BAL 6%, KNC 5%) give a 56% weighting to effectively a DeFi index.
  • Reduce SUSHI, AAVE and LINK assets to 12.5% allocations
  • Reduce BAL to 5%
  • Reduce KNC to 3% as its financial commitment and community on polygon is limited

This would reduce a heavily correlated basket of assets to 45.5% vs. 56%

  1. Increase WMATIC to 20% allocation
  • Raise the Maximum WMATIC to 25%
  • Raise the Minimum WMATIC to 15%

This is the Polygon index and it is important to have the highest allocation be in the chains native token.

  1. Classify SX as DeFi/Infrastructure vs. MetaVerse as they are the first project building the Polygon SDK a core piece of Polygon Technology
  • SX is classified wrong as just Metaverse
  • SX has some of the highest potential to grow in the Index, keep its allocation at 5%, but increase its Maximum allocation to 15% and raise the minimum allocation 5%. It is also the least correlated asset index which valuable for diversification.
  • Raising the maximum allocation of SX will allow SX to outperform the index’s average and increase the price of the index without selling right away.
  1. Increase the QI DAO allocation from 1% to 2%

QI is a polygon native stable coin that has seen great success and growth. From my research it seems like a strong token to invest in.

Overall these are just nitpicking my ideal index. Very happy with the projects included and can’t wait to buy it.

6 Likes