Status: Proposal Author: Matthew Graham (@Matthew_Graham) Created: 15 October 2021 Discussion to: https://gov.indexcoop.com/t/proposed-iip-95-beta-finance-dpi-mvi-bed-eth2x-fli-incentivized-lending-borrowing/2964 Quorum: 109,069 [2,181,385*0.05]

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Simple Summary

This proposal is to approve a spend of $105,770 to joint incentivise lending and borrowing of DPI, MVI, BED & ETH2x-FLI on Beta Finance's platform. Index Coop will acquire $105,770 of BETA tokens on market by swapping ETH for BETA from the Operations Account and transferring it to Beta Finance.

Initially, the products will not be whitelisted as collateral as a risk precaution and in time, this will be re-evaluated when Beta considers listing new collateral.

Index Coop will initialise the MVI, BED, and ETH2x-FLI markets on Beta Finance, this will require some ETH for processing the transactions and can be performed by anyone.

Abstract

The permissionless lending platform Beta Finance launched on the 18th August 2021 and entered into Phase 2 of the launch cycle with the introduction of liquidity incentives and the permissionless listing of assets on the 11th October 2021. Index Coop has the opportunity to list the following assets with the support of the core team at Beta Finance.

The target TVL at launch and at the end of the incentive program:

Beta Finance has asked if Index Coop is able to support the initiative and provide BETA incentives. Initially, Index Coop considered providing INDEX incentives to compliment the BETA incentives in a dual incentive program. However, we learnt this requires a new contract to be written and as developers time is a premium, we are opting for an alternative solution. The newly proposed solution is for Index Coop to acquire BETA tokens on market and transfer the same USD spend value to Beta Finance in the form of BETA tokens. This enables the existing distribution contracts to be used and avoids any Index Coop developer lift.

Beta Finance and Index Coop are to provide joint incentives in the form of BETA tokens to support lending and borrowing of the four Index Coop products.

Motivation

Beta Finance is in the launch phase, recently listed on Binance and was the 21st team to go through the Binance Launch Pad. Beta has an aggressive growth strategy that involves expanding across other ecosystems, including L2. As the first partner to list assets on Beta Finance, and with incentives, Index Coop is investing in a relationship for the future that will help integrate Index Coop products across other ecosystems. As Beta Finance expands and a solid relationship is established, it will be easier for Index Coop products to be integrated and attain extrinsic use cases in other ecosystems.

Another benefit of partnering with an early launch phase community is DPI, MVI & ETH2x-FLI holders now have the ability to earn yield by depositing or borrowing Index Coop products on the platform.

Specification

Index Coop and Beta Finance are targeting a $20M across the DPI, MVI, BED & ETH2x-FLI pools. Incentivising all the mentioned products is expected to occur during the week starting 22nd November 2021, subject to Index Coop's governance process being complete.

Incentives are distributed based upon the target APR. The APR is expected to drift lower as capital enters the pool and every two weeks the distribution of incentives will be adjusted to revert back to the target APR.

Voting

FOR:

DO offer $105,770 in BETA incentives across all Index Coop products when Beta Finance lists DPI, MVI, BED & ETH2x-FLI. BETA is to be purchased using ETH from the Operations Account and sent to Beta Finance.

AGAINST:

DO NOT offer incentives on any Index Coop product when Beta Finance lists DPI, MVI, BED & ETH2x-FLI.

Copyright

Copyright and related rights waived via CC0.!