Bankless DeFi Growth Index Community Call
Nov 2, 2021
⏰ We start at 3 minutes after the hour ⏰ 🚨 This meeting is being recorded 🚨
Call Technicalities & Agenda
Technicalities
Purpose: An opportunity to learn more about the Bankless DeFi Growth Index
Agenda
Mission: We’re on a mission to make crypto investing simple, accessible, and safe for everyone.
How do we do that? We focus on 3 core pillars
Index Coop Mission & Strategy
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Presentation by Lucas & Ben from Bankless + Lemonade
Introduction
Why this call?
To present and field questions on the proposed GMI Index.
Why Bankless DeFi Growth Index (GMI)?
The Bankless DeFi Growth Index (GMI) seeks to capture the performance of emergent DeFi application themes. Notably, GMI will seek to capture exposure to DeFi upstarts on a rolling basis by establishing a time limit on inclusion.
By relaxing some considerations for selection into Index Coop’s flagship DeFi Pulse Index, GMI seeks to provide exposure to experimental DeFi project tokens which are further out on the risk curve.
Introduction
About the Authors
Motivation
Customer feedback has indicated that exposure to DeFi assets further out on the risk-curve -- coupled with an indexing strategy -- would represent a compelling solution for them.
The DeFi landscape moves fast, and while customers are able to capture the appreciation of standard-bearing DeFi protocol assets through DPI, a vehicle taking a more risk-on approach and relaxing some requirements allows us to capture the aforementioned desire for exposure.
Premise
The Bankless DeFi Growth Index will contain a collection of ERC20 tokens curated to capture broad exposure to emergent DeFi application themes, rebalanced monthly. GMI is a simple composite index which will be built on Set Protocol.
The index screens for promising early stage DeFi projects which are not yet considered “blue chip” and attempts to produce an optimal weighting via the use of a combination of square-root market cap, relative secondary market liquidity, and relative token dilution/emission scoring.
GMI maintains rolling exposure to early-stage and experimental DeFi upstarts by employing a ‘graduation’ system which retires components after specific term lengths (or if they become part of DPI’s constitution).
User Stories
Pre-buy:��“Jawz and the Ohmies are giving me Fohmo on Twitter, but I’ve also heard that Spell thing is cool. How old are those Rari bois again? Idk man, it’s hard to keep track of all of the new projects these days, but I know I would feel much more comfortable if I knew I had a stake in up and coming DeFi projects.”
“DPI is an awesome product but we’ve missed the move in newer DeFi names”
�Post-Buy:�
“I hold DPI:GMI at a 4:1 ratio in order to attain more comprehensive DeFi exposure than DPI alone, with a more risk-on flavor”
Market Opportunity
To date, DeFi and risk products such as FLI have accounted for the vast majority of Index Coop’s AUM and revenue. We believe DeFi index products have immediate marketability and strong potential for PMF with Index Coop’s core personas.
Differentiation
Example Composition
Design - Token Inclusion + Exclusion
�Asset Size Requirements:
More Quantitative Filters:
Qualitative Filters:
Design - Token Inclusion (Staked)
Design - Token Exit
��Asset Size Exit:�
DPI Addition Exit:�
Time in Market Exit:�
Design - Weighting
Design - Misc
Challenges
Next Steps - IC Process
Next Steps - Methodology
Q and A
Open Questions
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Other Topics
Speaker: Open Discussion
Open Forum (If Time)
Archive