IndexCoop Rari Capital Fuse Pool: Formal Proposal

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Authors: @BigSky7, @Mringz, @oneski22 [Discord: TrotNixonLine]

Building on the original post here.

The IndexCoop BD team is formally proposing the creation of an IndexCoop operated Fuse pool. This proposal does not call for the transfer of any funds nor ask for any incentives to be given to this pool. This proposal is only calling for the creation of the pool.

The pool will be managed by a new multi-sig that will control the pool parameters. This proposed 3/5 signature will allow trusted DAO members to execute the necessary operations without burdening the main multi-sig which is already operationally strained.

The initially proposed signers are BigSky and Mringz from BD, Over Analyser from Product, 0xModene from Engineering, DFC (and optionally 2 signers from Set [2 of Dylan, Greg, or Punia])

The pool will initially contain:
DPI
USDC
DAI
ETH
ETH2x-FLI (supply and borrow only, unable to be used as collateral)

With the intent to add BTC2x-FLI, MVI, and INDEX, as well as future products once accurate compatible oracle solutions are ready. [Chainlink is preferred, UniV3 oracles are acceptable]

The initial market parameters will be set in consultation with Rari, however, IndexCoop as owners of the pool retain the final say and sole control over all parameters.

Should the community support the creation of this pool, Rari will post a snapshot vote for the RGT holders to decide if they will whitelist IndexCoop to be able to create pools.

We would love feedback, especially on the use of a new multisig for control of the parameters.

After sufficient discussion, we will add a poll to gauge community sentiment.

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Reading over this it is clear this will increase Index Coop administration burden, will have direct costs and require resources to maintain.

If I understand correctly, Index Coop shall incur direct cost via wages and the need to develop the in-house skill sets to manage the proposal.

Please provide a business case to justify this expenditure.

Will this generate any revenue for Index Coop ?

May I get a response to the post linked below.

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Hi Matt,

The initial setup which is all this proposal is asking for, will require 3-5 transactions to be executed by a 3/5 (or 3/7) multisig. We view this as a similar experiment to ones we have taken in other venues, such as Loopring, to see if there is a market demand for an additional lending solution. The salary cost is quite small.

While we will be working closely with the Rari Team to set initial parameters and adjust if necessary. Closer management of the market and development of the expertise can occur once we have shown that demand exists.

We are not requesting any treasury funds for this project. Rari will be supplying 100,000 USDC in initial supply liquidity from their yield aggregator.

We have seen a number of DAOs use fuse as a place to add additional value to their various offerings and test lending demand including FEI, Olympus, Volmax, and PoolTogether.

I believe that demonstration of demand, as well as real world data on how are assets perform in a lending market, can only help our tokens get on Comp, Aave, Maker etc.

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I strongly agree with @oneski22 and support this proposal. This requires NO expenditure from Index Coop. If the pool does not gain liquidity over the following three months we can shut it down at no cost to us.

To re-iterate this proposal requires no funds from Index Coop and creates a valuable new lending market for our tokens.

At this stage in IC’s growth we should be embracing experiments and innovation not looking for ways to say no. Especially when those experiments are essentially cost free, have significant upside, and require minimal further work from our community.

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One of the Q3 Strategic Priorities is doubling down on the most effective growth/distribution tactics and the first bullet is Major DeFi integrations (i.e. Aave). It is my opinion that this does focus us on effective growth and distribution and pushes us towards major DeFi integrations in a couple ways:

  1. Proving out the demand for borrowing/lending of Index Coop products helps us with other integrations.
  2. Rari itself could be at the beginning of becoming a more prominent, trusted protocol.

OlympusDAO’s recent launch on Rari is very encouraging. And Sushi just announced that they are launching a Rari pool. So let’s do this!

Based on the Org call, it sounds like BD is going to carry the lift here? There will be some analytics work needed after launching a pool, but happy to have myself or the AWG carry that given my support here. I am also happy to help as a mult-sig signer if you are looking to get any signers outside of BD that are going to be involved in this initiative.

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Post in the Rari Governance Forum is live.

https://forums.rari.capital/d/119-whitelist-indexcoop-dao-as-pool-creators

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