INDEX staking/vaults/lending

Holding a token which doesn’t generate any interests is a big pain point and often the biggest discriminating factor that drives investors away.
We can follow different paths but we need to it quick because DeFi moves fast and we should move fast with it.
Three things come to my mind that could finally turn the INDEX token into a interest generating token:

Paladin: deposit INDEX and earn interests from governance borrowers (+PAL liquidity mining).
How does Paladin works? It’s a platform where governance tokens holders can deposit their tokens and lend the underlying voting power only (not the token itself).
We should absolutely consider an integration with Paladin, which will unlock the true power of metagovernance.

Ondo Finance: deposit INDEX in Ondo vaults and earn interests from fixed/variable tranches .
How does Ondo works? It’s a market-making platform where users deposit tokens from a pair, let’s say INDEX/ETH, and the platform uses those tokens to increase the pair liquidity.
INDEX holders could earn interests depositing their tokens in the vaults and at the same time the Coop would benefit from a much deeper INDEX/ETH liquidity.
The Coop could also deposit INDEX and ETH(from ETHFLI) in the Ondo vaults, being able to earn interests on a portion of the treasury instead of having those funds sitting still.

Staking INDEX for $GMI rewards: set up a smart contract where INDEX holders can stake their tokens and get interests from the tokens held in the $GMI index.
How? Votemak is a platform where TOKE holders are bribed to vote for one or the other reactor during the voting period on the Tokemak platform and in the last session we saw more than $1M bribes from Shapeshift, APwine, Fantom.
INDEX holders will vote with TOKE held in the $GMI index and they should earn those bribes.
Same thing should happen with CVX and Votium bribes.
We could also use those bribes to market buy INDEX, achieving the same goal with an easier solution that doesn’t require a smart contract and its security implications.

A strong token is the best marketing for a project and it increases its strength in the eyes of investors.
INDEX tokenomics should be a priority in Q1 2022.

Happy Christmas :santa:t2: :christmas_tree:


+1 that the index token needs more functionality

another idea: all funds that provide rewards should allocate X% to be given to INDEX holders

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Honestly, it’s a pity that holders voices aren’t considered, helpful inputs about tokenomics neither.
It’s evident that the INDEX token is seen more as a cow to milk as much as possible instead of an asset to valorize, every post about tokenomics get little to none interest, no responses, nothing; posts about airdropping 30% of the supply to contributors get 100 comments.
DAO means also community and token holders.
I hope in 2022 the INDEX token value propositions will be considered more, because a strong INDEX means a strong treasury and a strong Coop and after a year is quite shameful to have $10k liquidity for INDEX/ETH with $200M AUM.

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Hi @Deronte,

There is on going work that is looking into Tokenomics. Some early ideas involve making INDEX productive through a yield arbitrage strategy something that could be referred to a strategy yield optimising. This vault would involve depositing INDEX and earning a yield. The idea is being explored, as the INDEX nominated yield would be generated through market buying INDEX and then distributing to those who deposit into the vault. I think I could design a strategy that would not only utilise an Index Coop product which creates AUM (revenue) for Index Coop and also +5% APY on INDEX.

The issue with this idea, is it uses a lending protocol and with that a reliable oracle price feed is needed. We don’t yet have this building block. So the above idea shows we are thinking about ways to improve INDEX value, in this instance, via increasing AUM/revenue, on market buying pressure and extrinsic productivity all in one. When INDEX is listed on a one or more CEX and there is good on-chain liquidity enabling a reliable oracle to be created, we can look at the above idea in greater detail.

Apologies, this is not the answer you wanted to read. But at least you know some people are actively working on ways to try improve INDEX’s tokenomics.