Creation of a pool accessible via the INDEX coop website to allow users to deposit and lock-up $INDEX and generate yield
The goal is to create value for existing $INDEX holders, reward the holders that want to support the community long-term (not dumping, not trading) and provide an outlet for the DPI fees that coop accumulates.
We need to create value for $INDEX token holders and those who want to hold long-term. A lot of us are DPI holders and would benefit from seeing the value created in DPI (ie: market cap and holding increases) reflected in the value of $INDEX and its community.
The technical setup may be discussed, here’s some general ideas:
- Theres should be a meaningful lock-up period (30 days, 90 days, 120 days…)
- APY should be meaningful but not sky high (as to not drain treasury)
- The lock-up should help decrease token velocity and motivate LPs to stake their tokens instead of dumping
- Pending items: payout mechanism and tokens to be distributed when the lock-up ends ($INDEX, DPI, ETH…)
You’d want to have a pool to lock-up your $INDEX tokens on the coop’s website with specified rewards.
You disagree this is a mechanism that could help drive value for the coop and $INDEX at this moment
Do you want to have an $INDEX pool?
What lock-up do you think would be best?
What is the most suitable APY?
- Less than 5%
- Range of 5-10%
- Greater than 10%
What functional purpose does locking up INDEX serve? There have been many discussions about staking INDEX which will then be used as an insurance policy against DPI farming losses, which makes a lot of sense since INDEX stakers are exposing themselves to risk that is necessary to the proper functioning of the protocol. Here, INDEX stakers really only serve the purpose of keeping the price of the coin high, which feels a bit more like ponzinomics than useful tokenomics.
Pretty much agree with ncitron but wanted to add another comment as I see most of the votes are “FOR” right now. I am also against this unless there is some real issue that this addresses.
I have to agree with the above users. The best way to make INDEX stable over the long term is to make it useful in some way, not liquidity providing or lock-up periods. If people want to trade, let them trade. Market efficiency will stabilize this in the long term. Trying to prevent losses is a fool’s errand.
You all do have valid points, I think this was an interesting way to spark a discussion and gauge the opinion of the community. A pool that allows for staking could be an option to link value creation in DPI to $INDEX, the goal here is to think of mechanisms that allow to connect both tokens intrinsically, so all the work put in by the coop can be reflected in both. The pool would allow to connect them via DPI fees distributions. There may be other mechanisms to do this 100%, it’s up for discussion in any case. This is in no way thought to be a proposal to create inflationary pressure on $INDEX (may be a side effect but I don’t think so, if APY is low enough).
@EJT If you want to create value for INDEX holders then you join one of the working groups or participate in the bounties program and contribute directly to the success of the Coop.
I’m sure it’s written somewhere, but is the streaming fee somehow currently distributed to INDEX holders? Or would staking somehow allow the fee distribution?
Staking for Index is required to make this coin valuable . Also keen on 10% plus API if it is within budget . Hopefully a lot of new users like me lock our coins and invest via this platform