IIP Number: XYZ
Title: Liquidity POD budget to 31st March 2021
Status: Draft proposal
Created: 11th December 2021
To give the newly formed Liquidity pod a mandate to direct the management of INDEXcoop capital resources and limited expenditure to support DEX liquidity.
The pod will have the authority to direct [USD TBC] of INDEXcoop capital and a further [USD TBC] of expenditure.
With the passing of IIP-110, liquidity pod members are being recruited and structures put in place.
The pod will have the authority to manage all capital currently deployed, or planned to be used for in providing liquidity of $INDEX or our products. In addition, the pod will be able to manage liquidity to support product rebalances and to pay liquidity incentives to 3rd parties.
This IIP is purely focused on the pod budget. It does NOT define the exact mandate, RAPID framework, or OKR’s. These will all be decided by the Liquidity pod and Wise Owl council.
Managing the DEX liquidity of $INDEX and our products is a key part of our operations. If done correctly it greatly improves the user experience in buying and holding our tokens.
To date, liquidity has been managed by a combination of expenditure (liquidity mining) and direct provision of liquidity. These have mainly been agreed upon by individual IIP’s resulting in significant governance overhead.
In addition, we have had occasions where plans approved by IIP process become non-favorable to implement due to technical blockers or better alternatives becoming apparent.
Useful short term capital initiatives (e.g. seed liquidity for product launch, or underlying liquidity to support rebalancing) have largely been discounted due to the governance overhead for individual IIP’s.
Reliance on the IIP process is not fit for current requirements and will struggle to scale as we launch more products.
Current (and planned) Capital deployed
|BED:ETH||Long term (>90 Day)||$260,000||NFT|
|ETH2-FLI:ETH (polygon)||Seed (< 7 day)||$250,000||Address, LP holders|
|INDEX:ETH||Long term (> 90 day)||[$1,400,000] - not yet deployed||IIP-109|
Proposed & agreed but not deployed expenditure
|DPI:ETH polygon||Polygon LM rewards (not deployed)||$20,000||IIP-62|
|MVI:ETH||Liquidity migration incentive(not deployed)||$48,000||IIP-96|
|MVI:ETH||Liquidity migration incentive (Gas and LM rewards)||$76,000||Draft IIP-XY|
By creating a Liquidity pod, with the use of a RAPID decision-making framework we allow a well-informed group to act quickly on behalf of INDEXcoop as we grow.
To be effective, this POD needs access to assets without a need for individual IIP’s.
The Liquidity pod will be given authority to allocate INDEXcoop capital and expenditure to the specified limits to support product rebalances, and the DEX liquidity of our products and $INDEX.
By creating a Liquidity pod, and the use of a RAPID decision-making framework we allow a well-informed group to act quickly on behalf of INDEXcoop as we grow the number of products on the market.
Allocating a budget for the POD to use is an essential part of the benefit of creating the liquidity POD.
The liquidity pod will take over responsibility for all current, and agreed on liquidity deployments and any proposed or agreed expenditure that has not been put on chain:
Future Decisions to allocate INDEXcoop capital or expenditure will be done via a RAPID framework by members of the liquidity pod, F.Nest, G.Nest, with support from appropriate community members and oversight by the wise owl council.
Liquidity pod directions will be enacted by the engineering team and/or appropriate multi-sig signers.
Decisions related to financial assets will be communicated via a Liquidity pod announcement channel on the discord.
Wise Owl Council can disband the pod at any time.
To delegate authority over [TBC] $ USD of INDEX coop assets and to make available a further [TBC} USD of expenditure to the liquidity pod until the 31st March 2021.
Individual recommendations for the liquidity Pod will be submitted for IIP votes.
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