This proposal is expected to appear on Snapshot for voting on 17th October 2021.
TL;DR
- Proposal to whitelist INDEX for IL protection
- Proposed co-investment is 200,000 BNT
- 0.2% Fee pool to compete with Sushiswap and Uniswap V2 pools (and undercut Balancer and Uniswap v3)
- There are no apparent security concerns that would prohibit whitelist status.
- There is no reason to doubt the legitimacy of the INDEXcoop project.
LINK token address: 0x0954906da0bf32d5479e25f46056d22f08464cab
Project Website: https://www.indexcoop.com/
Token Security
INDEX does not have an elastic supply, or rebase mechanism. The supply is fixed at 10,000,000 with 2,181,385 in current circulation. The 7th largest holders are INDEXcoop community, SET labs, or DeFi pulse multisigs or vesting contracts and account for 72% of tokens.
Vesting tokens will be released over 3 years from October 2020 to October 2023 based on the following schedule:
The INDEX contracts do not appear to have permissions that grant administrators unrestricted mint/burn capabilities.
Project
INDEXcoop was formed in October 2020 by SET protocol and DeFi pulse to launch and manage on chain structured products. Currently these take two forms:
- Sector indices which mint a single RRC20 token when the underlying tokens are deposited. Examples include DeFi Pulse Index ($DPI), Metaverse Index ($MVI), Data Economy ($DATA) and $BED (Which contains Bitcoin, Ether, $DPI)
- Leveraged product created by depositing tokens into compound and then borrowing $USDC against the collateral.These include $ETH2-FLI and $BTC2-FLI.
All products are based on Set Protocol smart contracts and generate income by charging holders a streaming fee. In addition, the leveraged products charge issue and redeem fees.
INDEX coop currently has $286 M AUM with zero being incentivised by [INDEXcoop] liquidity mining or staking. Daily income fluctuates, with a minimum of $10,000 per day over the last 2 months. Total cumulative income since launch in October 2020 was $1.7 M.
The INDEXcoop has been recognised as one of the leading DeFi communities and is currently dominating the structured products / index product category within DeFI.
Tokenomics
The INDEX token is currently a pure governance token for the INDEXcoop. Nor are there any token burn mechanisms in place. INDEX is based on the ERC20 standard.
At this time, other than LP’ing with the risk of IL, there are no productive ways to use INDEX tokens (i.e. single side staking, use as collateral).
INDEXcoop recently did a strategic raise with 7,775,000 USDC held in the Treasury.
Community and Communication
INDEXcoop main internal activity is on Discord and Discourse with reference docs and Snapshot voting for IIP’s. There are also Twitter, Reddit, Instagram, TicTok, and Podcast, and WeChat marketing channels. INDEXcoop UI and smart contracts activity can be found on GitHub.
There is also a DuneAnalytics board showing key metrics.
Available Audits
The Index Coop’s farming contracts are based on forks from Uniswap and Compound with minimal changes and have not been audited.
The Set Protocol contracts have been audited by ChainSecurity and Trail of Bits
The new MetaGovernance module completed an audit with ABDK on 13/11/2020.
Market and Trading Data
- INDEX price at the time of writing is $35.13
- All-time high: $67.08 (09 May 2021)
- All-time low: $1.33 (06 November 2020)
- Price 90 days ago: $25.30
- 2,181,385 tokens in circulation
- 10,000,000 maximum supply.
- The current market capitalization is $76,624,063
- The INDEX token is available on exchanges, including Hoo.com and Bilaxy
- The majority of trade volume is on Uniswap v3 and Sushiswap
On chain trade data:
There are currently 4 main on chain liquidity pools with significant INDEX:ETH trade volume. With varying fees and volumes. Only the Sushiswap pool received any Liquidity Mining incentives (INDEXcoop have never incentivised INDEX liquidity)
None of the pools offers LP’s IL protection.
| 10 Oct 2021 | Sushi | Balancer v1 | Uni v2 | Uni v3 |
|---|---|---|---|---|
| AUM (11oct21) | $1,122,000 | $1,200,000 | $575,000 | $1,560,000 |
| 28 day average 24 H | $86,099 | $12,014 | $36,280 | $179,244 |
| Fee | 0.25% | 2.00% | 0.30% | 1.00% |
| Daily fee | $215 | $240 | $109 | $1,792 |
| Average Fee Income | 7.0% | 7.3% | 6.9% | 41.9% |
| Liquidity mining | 30% | 0.0% | 0.0% | 0.0% |
| Total Income | 37% | 7.3% | 6.9% | 41.9% |
Benefits for Bancor:
Adding INDEX as a white listed pool will allow INDEX holders to make their INDEX tokens productive while being protected from IL. As INDEXcoop contributors are paid in INDEX, this will serve as an excellent way to attract the attention of a strong and active community.
The initial proposal is expected to create a pool equivalent to the AUM of any of the current pools and lower fee for traders. If this pool is successful in being filled and capturing some volume, then increasing the BNT allocation would be proposed.
Long term the goal would be to work with the INDEXcoop community to enable Bancor to feel confident in whitelisting of INDEXcoop products (Particularly $DPI, $MVI, $DATA and $BED) as these attract significantly more volume then INDEX.