This proposal is due to appear on Snapshot on Monday 5th April, 1pm UTC. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
Hello Bancor community! I’m Lito from Indexed Finance. I have become a big fan of Bancor over the last couple of months as I dived deep into Bancor V2.1 and got to know the team. I even interviewed Nate and Mark for my Cryptotesters podcast recently.
As a Bancor enthusiast and an Indexed Finance core team member I naturally want to see these two projects develop a relationship and explore partnership possibilities.
Below is my proposal to whitelist our core indices DEFI5, CC10, ORCL5 as well as our Sigma index DEGEN (soon NFT index) and our governance token NDX.
We are suggesting the default co-investment of 20,000 $BNT per pool.
I am aware that pushing multiple tokens in a single proposal is generally frowned upon. Therefore, the purpose of this document is to organize and summarize the overall value proposition to Bancor and its community; however, each token will be submitted separately for a DAO decision.
To maintain a strong sense of cohesion, and to assist discussion between BancorDAO members, this parent document can be treated as a central beacon for general comments and questions. I will prepare separate posts on the governance forum for each token, and invite your specific comments and criticisms on those as well.
I am super excited to be here, and I very much look forward to working with the DAO on improving these proposals, until they are fit for a final governance decision. Thank you in advance for your attention!
Indexed Finance is a protocol for developing passive portfolio management strategies (a.k.a ETFs). The first product developed by Indexed Finance is a set of capitalization-weighted index pools designed to replicate the behavior of index funds, which historically have returned better and more consistent returns than actively managed funds on the stock market.
Index pools simplify asset management on Ethereum the way that index funds do for the stock market: by creating a single asset which represents ownership in a diverse portfolio that tracks the market sector the index represents. Each index pool has an ERC20 index token which anyone can mint by providing the underlying assets in the pool, burn to claim the underlying assets, or swap with exchanges to easily manage their exposure to specific markets.
Our three core indices are DEFI5 ($18m TVL), CC10 ($10m TVL) and ORCL5 ($400k TVL). We also recently launched DEGEN ($7m TVL as part of our Sigma program aiming at experimenting with new index ideas in a more agile set-up. NFTI, our upcoming NFT index will also be a part of Sigma.
The core difference between Indexed and something like $DPI (IndexCoop) is that our indices are 100% automated. The tokens sit in AMM liquidity pools and re-balance based on a Uniswap mkt.cap oracle. The DEFI5, CC10 index tokens etc are really just LP tokens representing a share in those AMMs. It also means the assets are constantly generating yield for their holders.
Index projects have grown tremendously in popularity over the last couple of months. They are especially attractive for crypto beginners/newcomers who don’t have the time to actively manage their portfolio and spend hours researching new projects. By having liquidity for multiple indices tracking various market sectors, Bancor will be a more attractive trading venue for this target group as opposed to ceding them to Uniswap.
NDX (ERC20), is used to vote on proposals formulated by the community through our Snapshot page as well as on-chain. Our DAO is based on the same Governor Alpha contract as Compound. NDX holders can also participate in the governance of Uniswap, Compound (and more in the future) with the UNI and COMP tokens sitting in our index pools.
In the near future, pending upcoming tokenomics changes, we will be exploring more utility for the governance token such as staking, vote-locking, and more.
Today, close to a third of the total NDX supply has been distributed to the community via liquidity mining. At the time of writing there are 5252 NDX holders.
The DAO treasury (address number 2) receives 30% of the supply vested over 9 months starting from March 1st 2021.
The founder team (address n.3) has 20% of the NDX supply which are vested linearly over 9 months.
Molly Wintermute from Hegic invested into Indexed at an early stage of the project and owns 100,000 NDX tokens or 1% the supply.
Other than Molly there are a couple of whales in the community but no one controls more than 1% of the token supply.
TVL in the NDX pool: $810k
24h volume: $366K
24h fees: $1100
Community and Communication
The core contracts have been audited by two independent security experts: Daniel Luca, a former auditor for Consensys diligence, and Mudit Gupta, the lead blockchain engineer at Polymath.
Market and Trading Data
- NDX at time of writing is $6.97
- All-time high: $27.71 (Feb 04, 2021)
- All-time low: $1.01 (Jan 15, 2020)
- 3,147,404 tokens in circulation
- 10,000,000 supply
- NDX is available on Uniswap
Documentation and Materials: https://docs.indexed.finance/
A comparison of Index projects: https://cryptotesters.com/review/comparing-defi-index-projects
Interview with Dillon Kellar: https://defiprime.com/indexed-finance
I suggest the voting date to start on Monday 1pm UTC to leave ample time to discuss the proposal.