v1.0 of the Index Coop North Star & Core KPIs were set in early 2021. At the time, DPI was our only launched product. These KPIs have served us well, and I believe we got a lot of things right when determining what was most important to measure as we grew this business. A few things (from my perspective and that I came up with while writing this) that we have learned about our KPIs:
- Simple Index Products & Leverage Products may have some overlapping KPIs but should also have some different KPIs
- Mint volume (alone) is a poor KPI
- New product launches (or the lack thereof) are difficult to surface in our current KPIs
- 7-day moving averages may not be the best time-frame for KPIs which require a moving average
- Net Capital Inflows should be a core KPI
- Protocol revenue can be tricky due to volatile market conditions - it may be best to try and break out revenue growth do to increased units and mint/redeem vs just larger AUM
- Users are only represented in one North Star / Core KPI (# unique holders)
- Milestone KPIs (ex: % of users with 2nd product buy) should be explored as potential Core KPIs
- Cohort KPIs (ex: retention % of new users in the last 60 days) should be explore as potential Core KPIs
So, as with all things, our KPIs must evolve. The Analytics Working Group will be looking to recommend some updates to our KPIs and how they are reported. I wanted to put this out to the community because it would be extremely helpful to get any and all feedback from Coop leaders and community members around the effectiveness, or lack of effectiveness, of our current KPIs and ideas for Index Coop KPIs v2.0.
I want to also make it clear that this is not intended to be a giant shake-up. The majority of our KPIs serve us well - I think this is more about making a few adjustments and leveling up when it comes to how we think about the health of our business and organization.
Tagging some individuals who have provided feedback or shown specific interest in KPIs in the past:
@LemonadeAlpha @MrMadila @Thomas_Hepner @gregdocter @dylan @fallow8 @Matthew_Graham @jackiepoo @sidhemraj @anthonyb.eth