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 Those rewards has become outdated and does not support current holders and users as it should.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 “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
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
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