Enable Index Coop products to go on other chains (Polygon, BSC, Fantom, xDAI).
Incentivize ETH2x-FLI/ETH pools on MATIC, BSC, FTM in partnership with Popsicle
Research updating Snapshot and updating analytics dashboards to include other chains.
Use data from these experiments to plan long-term strategy.
Mint/Redeem stays on L1 Ethereum. DPI, MVI, BTC2x-FLI, INDEX liquidity stays on L1.
Following on from posts from @Mringz DeFi Partnerships & Integrations Strategy, from @Mringz and @oneski22 DeFi Partnerships and Integrations Q2 and beyond and A vision for Q2-2021 all business development activities should be centered around reaching the following goals:
- $500M AUM
- 400,000+ DPI supply units
- $9M FLI suite 7-day moving average volume for 2 consecutive weeks
- 4 new products launched with $200M+ combined TVL. They are category leaders in terms of the most relevant measure (i.e. uTVL, volume, liquidity)
As mentioned in the DeFi Partnerships and Integrations Q2 and beyond:
We believe DeFi partnerships and integrations activities will assist in reaching these goals in the following ways:
- Increase the number of extrinsic productivity opportunities available in the ecosystem for Index Coop products
- Communicate the value proposition of existing extrinsic productivity opportunities for Index Coop products
- Build relationships with DeFi projects that will enable us to collaborate in creating new products and new extrinsic productivity opportunities
One of the key activities identified was listing on Layer 2 (L2) scaling solutions, which allow for low-fee trading, increasing volume and low-fee acquisition of products, increasing unit supply, and TVL.
Given the increase in capital, efficiency ETH2x-FLI has seen due to the Uniswap pool migrating to V3, we believe that ETH2x-FLI is the right product to begin our multichain expansion. We hope to use ETH2x-FLI as a case study to gather data and inform a long-term strategy for how the Coop should handle L2s and other chains going forward.
This is the present state of the Index Coop products on chains outside of L1 Ethereum:
- DPI has a bridge to MATIC, xDAI, and BSC, and a very small Sushi Pool (DPI/ETH) on MATIC.
- INDEX has a bridge to MATIC and xDAI
- ETH2x-FLI, BTC2x-FLI, and MVI have bridges to MATIC.
- Mint/Redeem functionality is exclusively on Ethereum
We see an opportunity to launch several small incentivized pools on leading DEX’s on Polygon (MATIC), Binance Smart Chain, and Fantom Opera Chain.
We are proposing the following actions:
- The following new bridges established:
- DPI → Fantom
- INDEX → BSC, INDEX → Fantom
- MVI → BSC, MVI → xDAI, MVI → Fantom
- ETH2x-FLI → BSC, ETH2x-FLI → xDAI, ETH2x-FLI → Fantom
- BTC2x-FLI → BSC, BTC2x-FLI → xDAI, BTC2x-FLI → Fantom
- Incentivized ETH2x-FLI / ETH Pool on MATIC
- $1M target liquidity, TBD APY
- Incentivized ETH2x-FLI / ETH Pool on BSC
- $0.5M target liquidity TBD APY
- Incentivized ETH2x-FLI / ETH Pool on Fantom
- $0.25M target liquidity TBD APY
- Partnership with Popsicle Finance to manage cross-chain rewards for these pools, and integrate with their automatic cross-chain LP management.
- Partnership with multichain.xyz to establish bridges to BSC, xDAI and Fantom for all existing and future Index Coop Products.
- Partnership with Polygon (MATIC) to establish bridges to Polygon (MATIC) for all future Index Coop Products.
- Research into enabling snapshot voting with Index on MATIC, BSC, Fantom and xDAI.
- Updating our analytics dashboards to include Index products on other chains to gather data and better inform our strategy going forward.
- Keep Mint/Redeem functionality exclusively on L1 Ethereum
We are requesting a loan of $175,000 from the BD Multisig to seed 10% of each of the pool targets, which we will remove once liquidity goals are met, and return to the BD Multisig with the trading fees going back to the BD Multisig and/or Treasury.
We are requesting a small group to be created with representatives from the Treasury, Product, and BD Groups to determine the ideal INDEX rewards for these pools, as well as the duration of the liquidity mining program.
This is all to build the underlying infrastructure to allow the Coop to be nimble as L2s and side chains continue to grow, as well as set up small experiments to allow us to gather data for a more long-term multi-chain strategy.
Is there anything we might be missing? Are there other chains we should consider?
Let us know in the comments.