Index Coop - MAR - MAY 2021 Financial Report
I am pleased to present Index Coop’s March - May 2021 Financial Report and a long form article was published via substack.
Index Coop continues to see strong month on month revenue growth with ETH2x-FLI revenue surpassing DPI’s contributions to be the main revenue earner during the month of May.
Index Coop continues to dominate the index fund management space and the future for Index Coop could not be brighter. Index Coop is the market leader within the ethereum community and continues to release market leading products.
Many thanks goes out to all those within the community. In such a short amount of time, together we have achieved so much and what a fantastic journey we are on.
Please do drop a comment below and let us know what you think.
Index Coop - Treasury Report March-May 2021 .pdf (427.4 KB)
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Hi @Matthew_Graham - thanks for this and makes for interesting reading. Given this data, I’m even more in support of the treasuries move to diversify our Index holdings into other assets (ETH / USDC).
Couple of minor pieces of feedback:
- Can we specify where this rank is from? I’m guessing Coingecko but this figure is arbitrary without clarifying.
- Would also be good to clarify the specific date this snapshot of price, volume etc was made
Great job.
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Hi @Pepperoni_Joe,
Great points. We will definitely incorporate this feedback into the next report.
The ranking is indeed CoinGecko. In the footer, we do state the data is as of 31st May but it’s pretty small text.
The next report will feature larger font size and likely be two pages or a bit less wordy.
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My bad Matt - totally missed it!
I just wanted to chime in to say this is really well done - both the one-pager and the in depth report. Really appreciate the detail and thoroughness.
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This was enlightening! Thanks for pulling this together!
Two questions; one question I have re the Income Statement section:
DPI streaming fee is 0.95%. This is split 70/30 between DeFi Pulse and the Index Coop. Within the income statement, the total streaming fee has been shown within Revenue and the DeFi Pulse share is shown as a cost.
The income statement table appears to have this flipped at 30% DeFi Pulse and 70% Index Coop. I believe the table is correct, but just want to check.
The other question I have relates to expenses: Where are expenses relating to rebalancing (gas fees) and any other direct operational expenses shown on here? Would they be covered by the DeFi Pulse portion of the fee split?
It’s 70% Coop / 30% DFP for DPI.
Rebalancing expenses, etc are currently covered by Set and are in no way incorporated into the fee portion that goes to DFP. Basically, the fee split is on a revenue basis, not an income basis.
These reports are excellent and only getting better. Well done, Matthew and Elliott!
Hey Matt, I’m still reading through this and I was hoping you can clarify some of these questions I have.
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I see that the gross profit is around 280k for May, where do these funds go? Do they make it to the treasury, or are they used primarily for the contributor rewards, which in May were $200k?
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Is it fair to assume that the circulating supply is increased until it reaches total supply, by using those tokens to pay the contributor rewards, if there’s less revenue in a specific month than the pay required for contributors?
Thanks!
Hi @heyandu,
All the Index Coop funds flow into the Treasury Wallet Address: 0x9467cfADC9DE245010dF95Ec6a585A506A8ad5FC
From there the funds are distributed out to Working Group or Funding Council Wallet Addresses. Looking at the Treasury wallet linked above, it shows the various product revenue streams accumulating over time. All expenses are paid in INDEX tokens at this point in time. Contributor rewards are paid from the Funding Council Wallet address: 0xe2250424378b6a6dc912f5714cfd308a8d593986
We have several vesting contracts from Genesis Year 1, Year 2 and Year 3. As INDEX tokens become available they are transferred from the vesting contracts to the Treasury Wallet and then distributed from there. Circulating supply will continue to increase until Total Supply is in circulation and I would think of Index Coop as being fund via the Year 1, Year 2 and Year 3 vesting contracts. The community has a run way of vesting contracts to become established and profitable.
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So everything can be easily tracked with the Treasury Wallet, as it makes its way in or out. Thanks Matt, this makes sense!
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