Status: Proposed Author: @Matthew_Graham, @prairiefi, @Ahuja Created: 18th August 2021 Discussion to: https://gov.indexcoop.com/t/iip-97-authorize-the-operations-account-for-beta-finance-rari-capital-strategies/2976 Quorum: 109,069 [2,181,385*0.05]

Note: Due to the snapshot word limit, this proposal has been abbreviated. To read the full proposal, please refer to 'Discussion to' above.

Simple Summary

This IIP includes two amendments to Index Coop finances. The first is to transfer MVI and DPI held within the Treasury to the Operations Account.

The second is to enable the Operations Account to interact with Beta Finance & Rari Capital by authorizing the Finance Nest (FN) to deposit assets held within the Operations Account into Beta Finance and Rari Capital.

Treasury: ‘0x9467cfADC9DE245010dF95Ec6a585A506A8ad5FC’ Operations Account: ‘0xFafd604d1CC8b6B3B6CC859cF80Fd902972371C1’

The Treasury holds $621,653.09 of DPI and $77,683.31 of MVI at the time of writing.

Abstract

IIP-70 authorized depositing $500K of USDC reserves into the Operations Account. Per the Stablecoin Asset Management Guidelines, the FN recommends these funds be made productive. In order to actively manage these reserves, this IIP will authorize the FN to deposit and withdraw assets into Beta Finance & Rari Capital freely in line with the stated guidelines.

With the emergence of Beta Finance liquidity mining on DPI and MVI, the FN would like to transfer DPI and MVI from the Treasury to the Operations Account and have the authority to invest assets productively. We expect DPI and MVI to become productive assets with various protocols like Aave V2, Rari Capital and Beta Finance all offering incentives on one or both mentioned Index Coop products. Rari Capital is teasing LM in their discord, Beta Finance has a proposal live on our governance forum and Aave V2 liquidity mining rewards are expected to be replenished during November which may, or may not, include DPI.

Having this blanket authority will allow the FN to act nimbly when managing the liquidity of the Operations Account as market conditions or the state of the Index Coop’s operations evolve. The ability to deposit and withdraw assets into Beta Finance enables Index Coop to partially offset the costs associated with proposed INDEX incentives being offered on DPI upon listing DPI, MVI and ETH2x-FLI.

Motivation

The Operations Account presently has the ability to deposit stablecoin held within the Operations Account into Aave, Balancer, Compound, and/or PoolTogether. This proposal seeks to extend this to include DPI and MVI, as well as adding the lending protocols Beta Finance and Rari Capital to the list of protocols the FN can deposit and withdraw from.

The FN seeks to deploy assets held within the Operations Account productively across a number of protocols in order to earn income for the Index Coop. Because the Operations Account is set up and the Beta incentives are only known for the first 12 weeks, we would deposit the DPI and MVI from the Operations Account rather than the Investment Account. Once the Investment Account is up and running, this type of strategy (non-stablecoin) is meant for the Investment Account.

Technical Specification

Beta Finance & Rari Capital are accessible from Gnosis Safe via Wallet Connect and no technical work is required.

Voting

FOR:

DO authorize the FN to use Beta Finance & Rari Capital in the Operations Account and DO transfer all MVI & DPI from the Treasury to the Operations Account.

AGAINST:

DO NOT authorize the FN to use Beta Finance & Rari Capital in the Operations Account and DO NOT transfer all MVI & DPI from the Treasury to the Operations Account.

Copyright

Copyright and related rights waived via CC0.