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.