IIP-184: Buyout DPI from Scalara

IIP: 184 Title: Buyout DPI from Scalara Status: Final Authors: @allan.g Reviewers: @ChrisG @0x_Dev @jordan.t @anthonyb.eth Created: 14 March 2024

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Simple Summary

This proposal intends to update the fee split on DPI from 70% Index Coop / 30% Scalara to 100% Index Coop / 0% Scalara. In exchange, Scalara will receive 45,000 USDC. Index Coop and Scalara have agreed to these terms pending a successful IIP.

Motivation

The DeFi Pulse Index (DPI) was launched in 2020 as the flagship product for Set Protocol V2 and Index Coop. Nearly three and a half years later, DPI has remained an integral part of Index Coop’s product portfolio, and it continues to be popular with new and legacy users. Since its launch, Scalara, formerly DeFi Pulse, has successfully served as the product’s methodologist.

This proposal seeks to buy out Scalara’s interest in DPI, with Index Coop maintaining the methodology for the product moving forward and receiving 100% of product revenue. If this proposal passes, DPI will continue to operate, as it historically has, as the DeFi Pulse Index on Set Protocol V2. However, if DPI is migrated to a new token in the future (similar to the legacy FLI tokens), Index Coop and Scalara have agreed that the new token will not use DeFi Pulse branding. Any future migration plans for DPI will be detailed in a proposal similar to the legacy FLIs and open for an extensive comment period. Migration proposals and any changes to the existing DPI methodology must also be voted on by $INDEX holders to be ratified.

Scalara has agreed to a one-time payment of 45,000 USDC in exchange for its interest in DPI.

Specification

• The revenue accrued for DPI will be claimed and distributed upon passing of this IIP and dispersed to Scalara and Index Coop in line with the current 70/30 fee split.
• Scalara will call the updateMethodologist() function on the DPI Manager contract and pass in the address eth:0x6904110f17feD2162a11B5FA66B188d801443Ea4 (Index Coop Eng Multi-sig)
• Index Coop will transfer 45,000 USDC to Scalara at (eth:0x673d140Eed36385cb784e279f8759f495C97cF03) as soon as the Methodologist role is successfully transferred from Scalara to Index Coop

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Voting

FOR: DO buy Scalara’s interest in DPI AGAINST: DO NOT buy Scalara’s interest in DPI