Product Working Group Weekly Call

27th September 2021

⏰ We start at 2 minutes after the hour ⏰ 🚨 This meeting is being recorded 🚨

**Important Disclaimer**

In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as this “Presentation.” Index Cooperative, taken together with its affiliates, is referred to herein as “IndexCoop,” “we,” “us” or “our.” The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any interests in a fund or any other securities. Forward‐looking statements. The Presentation contains certain “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to, among other things, future events and the financial performance of IndexCoop. Readers can identify these forward‐looking statements by the use of forward‐looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “assumed,” “anticipates,” “positioned,” “targets” or the negative version of those words or other comparable words. Any forward‐looking statements contained in this Presentation are based, in part, upon the historical performance of IndexCoop and our affiliates and on our current plans, estimates and expectations. The inclusion of this forward‐looking information, should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward‐looking statements are subject to various risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these statements. Accordingly, you should not place undue reliance on any forward‐looking statements. No reliance, no update and use of information. You should not rely on this Presentation as the basis upon which to make any investment decision. To the extent that you rely on this Presentation in connection with any investment decision, you do so at your own risk. This Presentation does not purport to be complete on any topic addressed. The information in this Presentation is provided to you as of the dates indicated, and IndexCoop does not intend to update the information after its distribution, even in the event that the information becomes materially inaccurate. Certain information contained in this Presentation includes calculations or figures that have been prepared internally and have not been audited or verified by a third party. Use of different methods for preparing, calculating or presenting information may lead to different results, and such differences may be material. Past performance. In all cases where historical performance is presented, please note that past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. Distribution of this Presentation. This Presentation is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to local law or regulation.

Mission: We’re on a mission to make crypto investing simple, accessible, and safe for everyone.

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How do we do that? We focus on 3 core pillars

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• Product growth: Our products must provide deep value to users & distribution must be a core competency.

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• Community autonomy: Empower contributors of different commitment levels to produce impact for Index Coop stakeholders

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• Protocol sustainability: Ensure the Coop is built to last. This is done through treasury management, value capture, governance, and product + growth + community.

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Index Coop Mission & Strategy

Principles

• We work together towards shared goals: Contributors feel progress is being made together, and they are rewarded for it.

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• We’re on an never ending journey of growth & improvement: Contributors feel they can be additive in improving the current process

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• We foster a sense of belonging: Contributors feel like they are part of something they are proud/passionate about

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• We foster a sense of safety: Contributors feel they can communicate openly w/o judgment and/or personal remarks

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• We interact with empathy: Community members feel heard; Community members feel their concerns are taken into consideration during decision-making

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If at any point, we stray from these principles, please send feedback and we will endeavour to adjust

Call Technicalities & Agenda

Technicalities

• Please stay muted unless you’re speaking.
• We will use the +1 system to initiate speaking
• This meeting is timeboxed to 1 hour - further discussion can go in the Discord or continued with the epic owner

Purpose: To discuss the priorities for the Product working Group

Agenda

• Liquidity
• Product to launch
• Product onboarding
• Internal Proposals
• External Proposals
• Discussion

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Introductions

Purpose: Put a face/voice to everyone’s name, get to know each other just a little bit more

1. Your Discord Handle / Name
2. A quick background
3. What do you do to relax?

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Type +1 in the chat box your intention to

introduce and we will go in that order.

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Liquidity

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Liquidity - Discussion

@OverAnalyser

• MVI liquidity is split between Uni v2 and v3 - Concern
• MVI:ETH pool has rewards on Polygon
• DPI:ETH pool on polygon does not yet have rewards - waiting on Sushi team.
• DATA liquidity is on Sushi
• Onsen rewards expected soon (™)
• Visor reported to be planning Vaults on top of coop v3 pools.
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• DPI volume is on Uniswap V3

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MVI liquidity - A concern - AUM

@OverAnalyser

• Liquidity rewards on Uniswap stopped on the 19th
• V2 LP tokens reduced - LP’s pulling liquidity
• Minimal migration to v3 ($150k v3 pool)
• Data here
• @Overanalyser to restart discussion on v3 liquidity Mining for IIP snapshot w/c 4th

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MVI liquidity - A concern - Volume

@OverAnalyser

• Main chain volume is moving to v3 - but slower than expected
• Unknown volume on polygon - UI is down

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MVI liquidity - A concern - Trade depth

@OverAnalyser

• V2 still has the deepest volume
• 1% price impact at ~$24,000
• For comparison Arbitrage Issue happens ~ $26,000 and costs ~ $240

V3 liquidity is in a good position

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MVI liquidity - A concern - LP income

@OverAnalyser

• V2 income has dropped with the end of rewards
• V3 gives highest average income
• No trade volume data for sushi swap - Income will be higher

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DATA Liquidity

@OverAnalyser

• Data Launched on the 23rd September
• All liquidity is on Sushiswap (~ $700,000) ~ 65% of DATA AUM.
• This is not enough for low price impact trades ($3,500 trade gives 1% price impact).
• Arb issuance costs ~$85 @ 33 Gwei (~2.5% of the same trade size)
• Onsen rewards are expected to boost liquidity (and AUM) - Start TBC

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DG2 to Launch

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Leaders: Punia

New Product Launches

@Punia

DATA - Target was 16th September → now 23rd September

DRI: Alex Cavalier and Lemonade

Community Action Items:

• Refrain from public communications on there products and launch dates until post launch; post launch blow it up!
• CDWG helping create major media assets for launch.

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Update or hide

Automated Indices Pod

Owners: @afromac, @allan.g, @Eric M, @tg

Automated Indices Pod

@afromac

Risk Modelling

• Eric M finished off V.1 (live-updating spreadsheet) of Automated Risk Model
• Challenge: Google Sheets Scripting creates inefficiencies and bugs
• Moving onto V.2 soon - no dependency on Google Sheets

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New Contributor to Pod

• Ahuja has been helping us with design and modelling
• Wants to get involved across the PWG

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Update or hide

DAO Tooling

Owner: @Punia & @Abel

DAO Tooling - De-prioritised

@Punia & @Abel

What do we need to help the coop grow?

• See Discussion and initial notes
• Looking at working with Parcel for payroll.

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Update or hide

Jobs

Leaders: OverAnalyser

Jobs

@Overanalyser

Update or hide

Product Onboarding process

Owner: @OA & Punia

Revised Onboarding Procedure

@OverAnalyser

Update or hide

Revised Onboarding Procedure

@OverAnalyser

Update or hide

Revised Product IIP template

@OverAnalyser

• More details requested from methodologists
• Differentiation
• Example composition
• Back test
• Size of opportunity
• User Stories
• Onchain Liquidity - e.g. how many trades to add a $1 M token at rebalance with 50 BP (0.05% price impact)
• Cost to customer
• How much rebalancing

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DG2 to capture

• Fee split
• Work team analysis
• Initial tech spec / Product Requirements Doc

Update or hide

Revised Onboarding Procedure

@OverAnalyser

Changes

• Return to Quorum on DG1?
• Who manages the Fee split discussions and agreement?
• Liquidity review methodology
• I (@OA) only became aware of the detailed criteria as part of looking at $DPI token addition.
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Update or hide

Product onboarding Tracker

@OverAnalyser

Internal Proposed Products

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Owners: Methodologists

Robot Index (iRobot)

Julien I bloom.fi 𑁍

Your success from last week 💥

• The formal proposal to establish and fund the RIWG is out on the forum for feedback !
• Work Team has completed the product assessment and prioritization process (no spoiler on the score ! 😇)

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Shoutout one person colleague who has helped you 🙌

• Catjam & Lavi

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Challenges we are working through 💣

• Updating the draft composition to take current market dynamics and liquidity situation into account

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What does the community need to be aware of this week 👀

• Final IIP for DG2 is ready for PWG sign-off, we can reasonably target start of next week for voting

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Update or hide

Yield Hunter Index

@OverAnalyser

Updates:

• Revised methodology has been passed to the work team for review
• A number of tokens added to Cream have yields > 5% over 7 and 28 days

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External Proposed Products

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Leaders: Methodologists

Data Economy Index (DATA)

Titans of Data (Thomas Hepner, Kiba Gateaux)

Your success from last week 💥

• DATA to be launched on Sushi Onsen menu!
• DATA Launch Kick-Off and Dashboard

Shoutout one person colleague who has helped you 🙌

• BigSky: Got us in touch with Sushi and Chainlink teams
• Codemathics and Sebastien: DATA launch banner and video!
• DocHabanero: content and marketing strategy!

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Challenges we are working through 💣

• DATA token contract from EWG
• DATA and RENFIL Liquidity on Sushi
• Chainlink Price Feed

What does the community need to be aware of this week 👀

• Launch Date: ETA 9/23 (do not share yet!)

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Update or hide

Pulse Aggregated Yield (PAY)

Defi Pulse

Your success from last week 💥

• Several discussions with protocols being evaluated for inclusion in PAY

Shoutout one person colleague who has helped you 🙌

• Catjam

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Challenges we are working through 💣

• Discussing the “Work Team Analysis” - Analysis seems not to capture all revenue streams
• Looking to pick up commercial discussion again as soon as work team discussion is done.

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What does the community need to be aware of this week 👀

• Methodologist has been actively meeting with various protocols that have products eligible for inclusion within PAY. Initiating Revenue Sharing discussions.

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Update or hide

Polygon Diversified Index (PDI)

Polygon Foundation, Mringz, Ahuja

Your success from last week 💥

• Finalized v2.0 Polygon Index

Shoutout one person colleague who has helped you 🙌

• @Ahuja

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Challenges we are working through 💣

• Product onboarding process

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What does the community need to be aware of this week 👀

• Updated methodology based on feedback
• Community call this Friday 16:00 UTC// 9:00 PST

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Update or hide

NFT index -

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Updates:

• In discussions with a methodologist
• Significant liquidity issue

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Update or hide

Other Topics

Speaker: Open Discussion

Open Forum (If Time)

• What's our role in liquidity going forward?
• Eg $MVI situation feels avoidable/solvable: could have had a backup solution given the uncertainty
• General sentiment on the call is that Index can improve here
• Proposal could be an IIP to allocate a pot, with appropriate people to decide, could separate decision makers and signers
• Action → Mel + Andrew + Cavalier to define next step and report back next week
• Retro on $DATA launch
• Cross WG, including Titans of Data
• Cavalier + @sheptig + @crews and schedule
• Liquidity considerations for new products
• Could liquidity-weighting work? → this significantly skewed $iROBOT’s composition
• PWG bounties / open jobs board → Cavalier to add to onboarding process + channels
• Ethos on overlapping products?
• Seems inevitable we launch overlapping products, so what does that mean for how we think about overlaps now?

Archive

• 0.9% AUM
• 1.7% fees
• 1.9 ratio

Open Forum (If Time) -20Sept21

• Reduce PWG meeting to every 2 weeks?
• INDEX:Product pairs https://gov.indexcoop.com/t/for-discussion-iip-xy-sustainable-direct-liquidity-provision-for-simple-indices/2698
• Lots of product launches - need liquidity
• Liquidity mining is expensive
• Single sided staking for known rewards and we LP with them...
• We need a strategy for Liquidity!
• Delegated to a work team / Pod?
• Work team analysis on the different options for the community?
• Can we build automated liquidity management for our products?

Liquidity - Masterclass

@OverAnalyser

Product Working Group masterclass for coop Interns / community

• Why we need liquidity for our products
• Impact on customer experience
• Ways to maintain liquidity
• Effect of underlying token liquidity on simple products
• Effect of liquidity on leveraged products

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• Date TBC
• Presentation will be recorded
• Likely a blog / forum post to follow.

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iROBOT

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Updates:

• https://gov.indexcoop.com/t/iip-71-launching-the-robot-index-irobot/2321/6
• Passed DG1
• PRD and underlying liquidity assessment complete and passed to work teams
• Work team analysis Ongoing
• Fee split in forum
• 30% of income to goto Working group.
• INDEXcoop to retain methodology bonus.

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