Hi @mel.eth responding to these points:
if there’s a risk that one token failing could drain the liquidity of others in the pool I’d be a little hesitant
Rari Pools are essentially private forks of Compound. There is no IL risk associated with AMMs, the risk is that bad debt is issued and those who supply tokens can’t be made whole should they withdraw their tokens
a third party will be managing the funds
The IndexCoop will be in full control of the market at all times. We will simply be working very closely / relying on Rari’s expertise to set the initial parameters. All changes will need to be signed from IndexCoop’s designated address.
IC borrowing against the treasury
We are merely highlighting a potential benefit. This proposal does not authorize the treasury to borrow again its holdings or execute any leveraged strategies. I would expect the TWG to clearly articulate and receive DAO approval before executing any such strategy. This proposal is only for the creation of the fuse pool.
@Matthew_Graham, @prairiefi, and @AcceleratedCapital can speak more to how the Treasury would use such a market however I would read more about their visions for the Investment and Operations accounts below:
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