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March 2022 Governance Nest Report
March 2022 Governance Nest Report
4/7/2022
Index Coop
Content
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.
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 Those rewards has become outdated and does not support current holders and users as it should.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).
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.
Outreach OKRs:
SixtyKeys published “
”
Mel.eth and Static121 built the
Mel.eth & Puncar joined Chase @ WIC to talk
Shawn16400 wrote “
Leveraging Metagovernance for Change
”
Contributors:
— Governance Nest Coordinator
— Governance Communications Coordinator
— Governance Operations Pod Coordinator
— MetaGovernance Committee (MGC) Coordinator
— MetaGovernance Ambassador Program Coordinator
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FAQs
Streaming fees (an annual fee paid continuously block-by-block)
Mint and redeem fees
Borrow costs (interest paid to borrow funds from onchain markets when using leverage)
Index Coop yield tokens simplify earning yield in DeFi by automating complex strategies and diversifying across protocols. They are user-friendly and cost-efficient, appealing to both new and seasoned DeFi users.
Leverage tokens automate a leveraged position by utilizing onchain money markets like Aave or Morpho to borrow funds, amplifying a user's exposure to an asset without requiring manual management. The token's smart contracts autonomously handle the borrowing, lending, and rebalancing of assets, maintaining a consistent leverage ratio despite market fluctuations. This automation eliminates the complexities of collateral management and liquidation risks, while also charging low, transparent fees that avoid expensive funding rates often charged by perps.
Index Coop is a decentralized autonomous organization (DAO) that specializes in creating and maintaining onchain structured products. Index Coop aims to democratize access to the crypto market, empowering everyone to participate in the growing digital asset ecosystem with ease.
No, yield automatically compounds and accrues to the token price. The value of the tokens you hold in your wallet will simply go up over time without the need to claim or compound rewards.
Index Coop products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
INDEX is the ERC-20 governance token on Ethereum for Index Coop. INDEX empowers its holders to participate in decision-making processes that shape the future of Index Coop.
Yes, all Index Coop products are instantly redeemable for their underlying value at all times.
Yes, all Index Coop smart contracts have been audited by leading independent security firms such as OpenZeppelin, ABDK, Isosiro, & more. There is also an active bug bounty program through ImmuneFi. Audit information is published in the docs here.
Costs and fees vary by product, but typically most products can include some combination of the following: