March 2022 Governance Nest Report

Shawn Grubb

Apr 7 | 4 min read

March 2022

The Index Coop Governance Nest is in full swing as we strive to build bullet-proof governance operations while we flex to new situations as they pop up. As this is our second Governance report, we are incorporating adjustments based on community input and guidance. This report chronicles governance activity for March of 2022.

A bar graph depicting a 1% uptick in IIP participation as a percentage of circulation for Index Coop governance proposals.

Notable Index Improvement Proposals

IIP-139: Season 1 Budget Approval

This proposal was for the approval of funding for Season 1 of the newly formed Index Coop nest structure. The budget being requested was $3,627,852.27 for a 5 month period. This amount was moved from the Treasury Account to the Operations Account and will be distributed/managed by the Finance Nest in line with the approved nest budgets.

IIP-136: DG - Launch the FIXED Suite

Proposal from the Product Nest to launch a suite of the first fixed-rate yield tokens to give token holders passive exposure to high, fixed interest rates. DAI-FIXED will be the first of these tokens to be launched. This suite of products is targeted towards DAO treasuries and retail users who want high, predictable returns on their assets. Holders will pay a 0.75% streaming fee. There will be no mint fee and a redeem fee of 0.30%. Post-gas, fee income will go 100% to Index Coop with 10% of that directed to the Product Pod.

IIP-141: DG - Launch the Interest Compounding ETH index ($icETH)

The Index Coop’s latest product, designed by the Product Nest. $icETH is now live and available for purchase. This product intends to provide enhanced yield on ETH using a leveraged liquid staking strategy. icETH is a relevant product for all customer types that the Coop currently serves: retail, DAO treasuries, and institutions. Because ETH is a core component of almost every crypto portfolio, all of these investor types stand to gain from a low-risk, high yield ETH product.

Holders will pay a 0.90% streaming fee, and there will be a mint fee of 0.15% and a redeem fee of 0.35%. Post-gas, fee income and protocol rewards will go 100% to Index Coop with 10% of that directed to the Product Pod.

Top Metagovernance Proposals

Compound-92: COMP Rewards Adjustments - Kickstart Rewards: Step One

This proposal has been the first step towards launching the new rewards program - existing rewards are being cut by 50%. Those rewards has become outdated and does not support current holders and users as it should.

AAVE: Add Terra USD (UST) to AAVE v2

TerraUSD (UST) is an algorithmic, seigniorage-based stablecoin. UST’s market capitalization has grown to almost $8.5B since its inception in October 2020. UST is designed such that each UST can be redeemed for $1 of LUNA and vice versa. This mechanism has kept the price close to the peg. Adding UST to Aave should drive additional stablecoin liquidity and borrow demand to the protocol. This proposal recommends a 0% collateral factor for UST.

COMPOUND-86: Add Market: MATIC & Update Price Oracle

MATIC has significant usage on Aave Polygon at $280MM in liquidity but isn't supported by Aave's mainnet contracts. This is an opportunity for Compound to become the mainnet destination for MATIC.

Operational OKRs

INDEX voter participation rate (%) percentage of circulating supply held outside of Index Coop

12% of $INDEX circulating supply held outside of Index Coop internal wallet addresses were active in governance during the month of March, this represents a 1% increase from the previous month. On average vote participation was 302,727 INDEX during the month of February, with an average circulating supply of 2,540,037 INDEX.

100% error-free execution by adherence to established governance processes (Lower control limit: 95%)

100% of these votes were executed per established processes.

35 votes were executed through Operational Governance:

23 MetaGovernance11 IIP and 1 Election (Index Council V2).

A chart depicting the status of Index Coop governance proposal for March 2022

Metagovernance OKRs

INDEX voter participation rate (%) percentage of circulating supply held outside of Index Coop

1.71% of $INDEX circulating supply held outside of Index Coop internal wallet addresses were active in MetaGovernance during the month of March, this represents a 0.7% increase from the previous month. On average, voter participation was 43,155 INDEX in March, with an average circulating supply of 2,524,443 INDEX.

Metagovernance request for assistance:

No requests for assistance. Regarding the Governance House proposal, until an Index Coop decision has been made, the Governance Nest will continue operations as normal.

Chart depicting Index Coop metagovernance proposals for March 2022.

Outreach OKRs:

SixtyKeys published “Governance Alerts Explainer”

Mel.eth and Static121 built the “What is Metagovernance” video

Mel.eth & Puncar joined Chase @ WIC to talk governance

Shawn16400 wrote “Leveraging Metagovernance for Change”

Contributors:

mel.eth — Governance Nest Coordinator

shawn16400 — Governance Communications Coordinator

sixtykeys — Governance Operations Pod Coordinator

Lavi — MetaGovernance Committee (MGC) Coordinator

Puncar — MetaGovernance Ambassador Program Coordinator

https://gov.indexcoop.com/t/monthly-governance-reporting-thread/3993

Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.

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Information is for educational and illustrative purposes only. The Index Cooperative is not engaged in the business of the offer, sale or trading of securities and does not provide legal, tax, or investment advice. Cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent.No Index Cooperative communication is intended to imply that any digital assets are low-risk or risk-free. The Index Cooperative works hard to provide accurate information on this website, but cannot guarantee all content is correct, complete, or updated.

March 2022 Governance Nest Report

Shawn Grubb

March 2022

Notable Index Improvement Proposals

IIP-139: Season 1 Budget Approval

IIP-136: DG - Launch the FIXED Suite

IIP-141: DG - Launch the Interest Compounding ETH index ($icETH)

Top Metagovernance Proposals

Compound-92: COMP Rewards Adjustments - Kickstart Rewards: Step One

AAVE: Add Terra USD (UST) to AAVE v2

COMPOUND-86: Add Market: MATIC & Update Price Oracle

Operational OKRs

Metagovernance OKRs

Outreach OKRs:

Contributors:

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Resources

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March 2022 Governance Nest Report

Shawn Grubb

.css-722v25{font-weight:var(--chakra-fontWeights-bold);}March 2022

Notable Index Improvement Proposals

IIP-136: DG - Launch the FIXED Suite

IIP-141: DG - Launch the Interest Compounding ETH index ($icETH)

Top Metagovernance Proposals

Compound-92: COMP Rewards Adjustments - Kickstart Rewards: Step One

AAVE: Add Terra USD (UST) to AAVE v2

COMPOUND-86: Add Market: MATIC & Update Price Oracle

Operational OKRs

Metagovernance OKRs

Outreach OKRs:

Contributors:

Sign up for our newsletter

Product

Resources

Connect with us

March 2022