Treasury Committee Notice: DPI KuCoin Listing

[reganbozman]

This is all totally valid feedback - this request for a loan should have come in IIP 27 but I prematurely asked for those funds before realizing the full extent of our obligations - that is on me.

This has gotten more expensive than I would’ve hoped but some of these costs (like loans to market makers) are inevitable and were always going to come up. The truth is that we do not have the upper hand in conversations with exchanges - DPI does not have the brand cache as YFI, nor the trading volumes. So while I fully believe these exchange listings are valuable strategically, we are a bit beholden to the exchanges.

@MrMadila

1. What contractual agreements are in place on the loans?

The funds are held in a wallet on KuCoin where our market makers have the ability to trade but not withdraw. We have a contract in place with Kucoin.

2. Is a form of collateral necessary, warranted/possible in anyone’s view? (Context: From my tradfi days we required min 105% collateral with daily margin calls marked to market. And that was lending blue-chip stocks to blue-chip investment banks!)

This is not possible imo - Kucoin is definitely not going to post collateral here.

3. As there is no legal entity of Index to speak of, what recourse options do we hold if any, in the event of exchange default/hack/regulatory event etc

We would have the same recourse as any other Kucoin user.

And lastly, just on the sale to USDT, do we have/need procedures in place for such transactions? To ensure best execution, value etc?

We 100% should develop procedures here. I was going to get a quote from GSR (major OTC desk) and leverage them for liquidation.