- The Index Coop <> Set relationship continues to evolve; several shifts are occurring.
- Success == the Index Coop ecosystem (Index Coop, Set, other partners) creating, growing, and maintaining dozens of successful products leading to significant TVL growth for all ecosystem organizations
- Set will be focused on where we can be highest-leverage to the Coop: Technology, Leadership, Product Ideas
- We believe the Index Coop’s success depends on the number of products it can create, grow, and maintain autonomously and sustainably.
- (, )
The Index Coop has evolved dramatically since Set founded and launched it in October 2020.
Throughout that evolution, the nature of the Set <> Index Coop (IC) relationship has also changed. We’ve recently entered a new, exciting phase for both organizations.
The purpose of this post is to share Set’s goals and how the Set <> IC relationship is evolving.
This post will be successful if it helps Index Coop core contributors, community, and other core stakeholders better understand:
- Set’s evolving relationship with the Index Coop
- Set’s intentions
- Set’s beliefs of what matters most for Index Coop success
We recognize that we exist in a rapidly evolving market and environment, so this post reflects how we view things today. We will update as needed.
This post does not change the nature of collaboration for Set & Index Coop teams already working closely together. Instead, it communicates the big picture.
We are excited for the future of Set, the Index Coop, and our organizations working together towards shared goals and mutual success.
Let’s root ourselves in the basics.
Set Protocol is an asset management platform. Set’s purpose is to increase financial prosperity by making powerful financial tools accessible to anyone in the world. We’re building a fully-featured and reliable platform for investors to access packaged strategies, and for creators to launch / grow / maintain strategies and build asset management businesses.
Today, we are focused on improving the Set platform and shipping successful products in order to rapidly increase protocol adoption and TVL.
This goal requires that Set
- Improves the platform for asset managers and developers - We expect to continue to foster an ecosystem of asset managers (including Index Coop) and developers using Set technology. To do this will require that we improve the platform in response to their needs.
- Supports successful products - We expect to be focused on structured products in categories where we believe we can be #1 or #2 in the market.
The Index Coop remains our closest partner for achieving these goals. We know that by improving the platform and supporting successful products both the Index Coop and Set will win (,).
Achieving those two goals also requires focus. We intend to fully distinguish Set Protocol and Index Coop from one another so that both organizations can double down on their strengths.
Set launched the Index Coop in order to support the DeFi Pulse Index. A decentralized community was needed to govern, rebalance, and grow the product and creating a community from scratch was the answer.
Of course, the Coop has evolved significantly since launch. Over 11 products with ~$150MM TVL are in the market, $10MM was raised from investors, the brand is strong and the community is thoughtful, hardworking, and passionate. It’s clear that the Coop strives to be a great and lasting organization that marks the best of DeFi.
So too has the Set <> Index Coop relationship evolved. While not linear or obvious, we’ve tried to approach the relationship in a manner of leadership development and hand over more responsibility and autonomy to non-Set core contributors over time. Roughly speaking, the relationship has changed over 3 phases:
- Phase 1 : October 2020 - February 2021
- Phase 2 : March 2021 - June 2021
- Phase 3: July 2021 - December 2022
- Phase 4: January 2022 - ??
We are now in the midst of an exciting 4th phase in which our organizations will become fully distinguished from one another such that the Coop can fully stand on its own two feet without Set’s operational involvement.
This milestone is a testament to the hard work and dedication of everyone who has contributed along the journey so far.
At a high level, this 4th phase requires that Set transfers the remaining operations (primarily technical in nature) to Index Coop Directly Responsible Individuals (DRis) in an intelligent and safe manner. We will continue to do this based on a clear vision, intentional planning, and effective collaboration such that both organizations are set up for success. In the end, Set will remain a core Index Coop stakeholder and will continue to work in collaboration with our Coop colleagues in the highest-leverage ways possible.
We see a future in which the collective Index Coop ecosystem (Index Coop, Set, other partners) is able to create, grow, and maintain dozens and then hundreds of desirable products - leading to significant TVL growth for all ecosystem organizations.
To reach that vision, both Set and the Index Coop need to focus on their strengths.
Set will continue to support the Index Coop in the highest-leverage ways we can.
- Technology Provider - Set is a technology provider and is focused on building fully-featured and reliable infrastructure that enables Index Coop and other asset managers to create, grow, and maintain delegated management products.
- Leadership Provider - Achieving our shared goals will require working alongside Coop leadership structures. Contributing executive level leadership / strategy, and generally supporting the creation of an environment that enables the Coop to become a lasting DeFi institution.
- Product Idea Provider - Guiding methodologists interested in building on Set Protocol (inbound to Set) and in need of the Coop’s core value propositions to and through the Index Coop to launch their product(s). Contributing methodologies and giving 100% of fees to IC (i.e. Proposal: Launch a Basis Trading Product Suite)
We see the Index Coop success as dependent on the number of successful products that it creates, grows, and maintains autonomously and sustainably.
- Create - Source & select the best product ideas to create: Properly generating these ideas requires immense creativity, market insight, and experience. Ideas can be generated internally or via external partners. Strong product judgment is required to determine what will do well in the market.
- Grow - Effectively bring products to market and grow them: This requires a deep understanding / insights of what it takes to launch successful products and to lean into the opportunities that generate these products.
- Maintain - Autonomous and sustainable product maintenance: This requires dedicated team members who are empowered with the proper tooling and technology to ensure that products are maintained indefinitely.
To create, grow, and maintain successful products requires organizational capability and the will to focus on those 3 pillars of success. This means optimizing resource allocation to core create/grow/maintain functions.
If create, grow, maintain are the Index Coop’s focus, success will follow.
Set & Index Coop teams are already working together towards these roles, and Set will continue to lend significant resources and support to ensure that we reach the end-state in a position that leaves both organizations poised for further growth.
This ongoing, phase 4 collaboration has rested on two key pillars that we fully expect to continue.
- Clear, consistent, open communication - We have established clear, known communication channels between our organizations.
- Clear collaboration - Creating clear collaboration agreements, especially as related to product create/grow/maintain.
Now let’s go from the high-level direction to concrete changes.
This table contains a summary of all the in-progress work that is required for the Index Coop and Set to fully distinguish from one another, focus on respective strengths, and work in a (3,3) relationship well into the future.
We view one of the highest-leverage ways for Set to contribute is as a leadership provider.
In an effort for transparency and clarity, here is a table that shares an overview of what Set will and won’t be supportive of when it comes to Index Coop proposals and activities.
TLDR; Set is supportive of focus on creating, growing, and maintaining successful products, as well as organizational structures that focus on those pillars with appropriate resource allocation.
Set is excited for the future of Set, the Index Coop, and our organizations working together towards shared goals and mutual success.
- Set is focused on building the platform and products needed in order to rapidly increase protocol adoption and TVL.
- In relation to the Index Coop, Set will be focused on where we can highest-leverage: Technology, Leadership, Product Ideas
- In order for the Coop to succeed, we believe it must focus on 3 core pillars of product: create, grow, and maintain.
Here’s to our future success! (,)