Add DeFiPulse Index ($DPI) as a collateral asset to CREAM market

Summary

DPI is an index that tracks the top DeFi tokens, launched by the well known DeFi Pulse and Set Protocol teams. Adding $DPI as collateral to CREAM will give us a more stable collateral asset, give us revenue from a top 50 DeFi token (Coingecko Top 100 DeFi tokens) and allow DPI holders to leverage their position.

About $DPI

The DeFi Pulse Index is a digital asset index designed to track tokens’ performance within the Decentralized Finance industry. The index is weighted based on the value of each token’s circulating supply. The DeFi Pulse Index aims to track projects in Decentralized Finance that have significant usage and show a commitment to ongoing maintenance and development. It aims to be for DeFi what the S&P500 is for the U.S. stock market.

The index methodology is managed by DeFiPulse, one of the leading DeFi analysis websites, and runs on top of Set Protocol, an OG DeFi dapp with ~$26M TVL. The ETF itself is managed by a DAO called Index Coop, with DeFiPulse providing the rebalance weights and assets in accordance with their rigorous methodolohy. You can read about the methodology for how tokens are added and rebalanced for $DPI.

Stats:

Motivation

I try to be an active contributing member to CREAM as much as possible and I think adding $DPI is a great opportunity for us. You guys may have seen me talk about CREAM before. I’ve proposed new UI designs, suggested we count timelocked CREAM in governance which was approved by governance (original twitter convo), and other general twitter shenanigans.

Why should CREAM add $DPI?

  1. CREAM already lists ~50% of the tokens held in the $DPI index - YFI, UNI, LEND, BAL, and COMP
  2. Because it is an index, DPI price is more stable than the underlying tokens making it a safer form of collateral.
  3. DPI is one of the most liquid pools in Uniswap with over $20M making it a top 10 pool which means there is enough liquidity for liquidations on CREAM platform.
  4. Substantial community support - Spencer Noon, David Hoffman (Bankless), DeFi Rate, $YAM, DeFi Dad, etc.
  5. Control of $DPI was transferred to Index Coop DAO about two weeks ago so we have just started marketing, integrations, and business development (this proposal included). If CREAM is the first lending protocol to accept DPI then the DeFi whales we are targeting will come to CREAM over other protocols to leverage their $DPI positions in order to yield farm, do spread trades, short the market, go leverage long, and create structured products.

It would be dope if DPI deposits/withdrawals got CREAM rewards but that will be a secondary proposal if this one is passed and CREAM community/team is interested in doing so.

Before someone asks - no we can not add CREAM to the index unless it falls under our strict methodology which is managed by DeFi Pulse, not the Index Coop DAO.

Proposal

Until timelocked CREAM is counted in Snapshot I can’t make a proposal so I would appreciate if someone made a snapshot proposal for me :upside_down_face:(@lumberg?)

  • Add $DPI as collateral to CREAM
  • Do not add $DPI as collateral to CREAM

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I think this is a great idea and exactly the kind of token CREAM should be listing.

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Any other thoughts on this proposal? Perhaps @eason or @lumberg?

I think that’s a great move. Maybe I can help set up a proposal for this.

thanks for calling out here. Was supportive of this one and glad to see it passed!

Proposal to increase DPI’s collateral factor if anyone wants to weigh in: