Work Team: @Metfanmike , @DocHabanero , @Abel , and myself
Summary: @LemonadeAlpha , Lucas Campbell, and Ben Giove have proposed $GMI (IIP-102 Launch the Bankless DeFi Growth Index ($GMI)), aka The Bankless DeFi Growth Index, which is a simple composite index which will be built on Set Protocol. The index screens for promising early stage DeFi projects which are not yet considered “blue chip” and attempts to produce an optimal weighting via the use of a combination of square-root market cap, relative secondary market liquidity, and relative token dilution/emission scoring.
$GMI scored a 2.28 in Work Team Analysis. This is a few points above DPI (2.08) and a few points below ETH-2xFLI (2.36), which have both been very successful products for Index Coop.
Link to full analysis: GMI_Product Scoring Chart - Google Sheets
Reference for scoring methodology: Revised Product Prioritization Framework
Benefits
Market Opportunity: 4.25
This section is the most impactful towards the overall work team score, and $GMI scored well! The product picked up points for a nice to have and need to have customer need. The team was split on whether this is a truly differentiated product, as it caters to a very similar market as Indexed Finance’s DEGEN and Pie Dao’s DEFI-S. Some also felt like there wasn’t enough market research presented to justify a score for a “large market” (which is defined as $50M AUM in year 1.)
Revenue Structure: 4
This is the first product to utilize a 3-way fee split, at 50% to Index Coop, 10% to @LemonadeAlpha , and 40% to Bankless. The sub-60% fee percentage to Index Coop prevented it from scoring a 5, though the high streaming fee (195bps) kept the score relatively high.
Methodologist Impact: 4
Bankless is a known entity in the space with a highly respected brand. The product did not earn a point for marketing plans that directly leverage the Bankless brand as those have not been presented in detail.
Costs
It’s worth noting that costs are factored into the rubric such that a lower score results in the product being ranked more highly.
Financial: 3
The product earned one baseline point and 2 points for requiring Index Coop to provide incentives. The methodologists plan to provide seed liquidity.
Operational: 2.75
The product earned one baseline point and one point each among most members of the team for requiring regular incentives and rebalancing efforts.
Technical: 1
This is a composite index that is relatively straightforward to launch
Note on Work Team Analysis:
- This is intended to help members who haven’t closely followed $GMI product discussions learn about the strengths and opportunities of this product. It’s also designed to help methodologists uncover strengths and opportunities in their proposals.
- Work Team analysis can never accurately predict the future, or how successful a product will be in the months/years after launch. What it does communicate is how much risk the Coop is taking on by launching a product, and a perspective on the strengths/opportunities as stated above.
- Work Team analysis is completed by each of the members individually scoring the product, discussing their scores, and aggregating results. The final score is an average of the individual scores.