RAPID Example: Increase INDEX Liquidity
Example implementation of a RAPID document.

RAPID - Increase INDEX Liquidity

Issue definition
  • $INDEX Liquidity is currently extremely low.
  • Low $INDEX liquidity leads to high volatility in INDEX price, lowers the purchasing power of our treasury, reduces financial reward & flexibility for IC contributors, discourages trading activity and can make $INDEX protocol integration difficult.
Proposed Solution
  • Supply 2,000,000 USD worth of liquidity to the $INDEX/USDC Pair on Sushiswap using existing funds from the Index Coop Community Treasury.
Decision Type
  • This is a type 1 decision. It is high impact and may be difficult to unwind.
Recommend
  • Dylan
Agree
  • Matthew Graham (Treasury Working Group Lead, increasing INDEX liquidity is TWGs domain of expertise)
Perform
  • Matthew Graham, PrairieFi, Dylan, Overanalyser (TWG Operations Multisig Executors)
Input
  • Metfanmike (Institutional Business Working Group, created the market-making plan with Wintermute, may have further insight)
Decide
  • Matthew Graham
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Team Input/Feedback
Matthew Graham - Supplying liquidity on the INDEX-USDC pair seems suboptimal. I'd like to see a proposal that leverages some other DeFi protocols that are available to us.
PrairieFi - Also agree that deploying liquidity on the INDEX-USDC pair isn't a good idea. We don't want to risk losing that USDC to IL depositing into Sushiswap. Have we considered supplying single-sided liquidity on UNI V3?
Metfanmike - No. We've just secured a Wintermute partnership and they are willing to help market make INDEX on DEXs. My suggestion is to hold off on any INDEX liquidity provisioning until that meeting has been had.
Overanalyser - There are other liquidity venus besides Sushiswap that we should look at.
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Decision
Do not push forward with INDEX-USDC liquidity provision. Wait for more information from Metfanmike by October 29th on potential Wintermute collaboration and make a decision then.
Next Steps & Owners
Metfanmike: Reach out to Wintermute on options for increasing INDEX liquidity. Share results with TWG by October 29th.
Last modified 1mo ago
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