(OGP 21) - Addition of Four New Markets

Title: (OGP 21) - Addition of Four New Markets

Author: mertioi.eth

Sentence Summary: This governance proposal aims to expand the market offerings on the Overlay Protocol by adding four new markets, namely the Top 50 Market Cap Index, NFT Blue Chip Total Market Cap Index, Crypto Volatility Index, and CPI (Consumer Price Index) calculated using Truflation's custom methodology.

Security Risks: The addition of these new markets introduces the potential for increased complexity and data integration challenges. It is essential to ensure proper data sourcing, verification, and security measures to mitigate any risks associated with the inclusion of these new markets. Additionally, any third-party data providers should be thoroughly evaluated for their reliability and security protocols.

While the addition of the proposed markets brings valuable opportunities to the Overlay Protocol, it is essential to acknowledge potential risks and consider them in the decision-making process.

The Overlay Protocol Foundation will actively monitor and assess the performance and reliability of the proposed markets, especially VIX (which can be predictable), to ensure that users have access to reliable and accurate data. Ongoing evaluation and risk management practices will be implemented to mitigate any potential adverse impacts on the protocol and its users.

Introduction: As the Overlay Protocol continues to grow, it is crucial -by its nature- to expand the range of markets available to users. By adding four new markets, we can offer a more diverse set of trading opportunities and attract a broader user base. This governance proposal outlines the key details and benefits of adding the Top 50 Market Cap Index, NFT Blue Chip Total Market Cap Index, Crypto Volatility Index, and CPI to the Overlay Protocol.

Body: By adding these new markets, Overlay aims to cater to the diverse range of markets and opportunities preferred by its users. Each market offers unique opportunities and insights, providing users with a wider range of options to explore within the protocol. Let's delve into the specifics of each market and understand how they can enhance the “exotic market” experience on Overlay.

Top 50 Market Cap Index: The Top 50 Market Cap Index will provide users with exposure to the largest and most established cryptocurrencies in the market. This index will consist of the top 50 cryptocurrencies by market capitalization and will serve as a benchmark for tracking the overall performance of the cryptocurrency market. On chain oracle: Translucent.link through chainlink contracts Methodology: siwa (provided by Autonomy Software Inc) NFT Blue Chip Total Market Cap Index: The NFT Blue Chip Total Market Cap Index will capture the market capitalization of blue-chip NFT (Non-Fungible Token) projects. NFTs have gained significant popularity and represent a unique asset class within the blockchain ecosystem. This index will enable users to participate in the growth of the NFT market by tracking the performance of the most prominent projects. (For more reference: https://data.chain.link/arbitrum/mainnet/indexes/nft-blue-chip-usd) Oracle: chainlink Crypto Volatility Index: The Crypto Volatility Index will provide users with insights into the volatility of the cryptocurrency market. This index will use a calculated methodology to measure and track the price fluctuations of various cryptocurrencies. By offering exposure to the crypto volatility index, Overlay Protocol users can potentially benefit from strategies that capitalize on market volatility. Oracle: chainlink CPI (Consumer Price Index) by Truflation: The inclusion of the CPI calculated using Truflation's custom methodology will enable users to gain exposure to the real-world economic data. Truflation's methodology ensures accuracy and daily updates, providing valuable insights for users in assessing the impact of inflation on their investment decisions. Oracle: chainlink

Proposed Cost: The addition of NFT Blue Chip Total Market Cap Index, Crypto Volatility Index, and CPI will not incur any direct costs -other than Translucent costs (LINK tokens, previously asked from the DAO)- to Overlay. The necessary data sourcing and integration efforts will be carried out by the Overlay Foundation, with the help of Autonomy Inc’s siwa source code

Conclusion: Expanding the market offerings on the Overlay Protocol by adding the Top 50 Market Cap Index, NFT Blue Chip Total Market Cap Index, Crypto Volatility Index, and CPI calculated by Truflation will provide users with a more comprehensive trading experience. These new markets cater to various opportunities and offer exposure to different aspects of the crypto and real-world economic landscape. We encourage the community to support this proposal, as it will contribute to the growth of the Overlay Protocol ecosystem.