New Collateral Factor Proposal: DPI on Polygon


DPI is the largest index token made by Index Coop. It aggregates the value of the top DeFi blue chips on Ethereum into one token so that investors can save time and gas while remaining exposed to the valuations of DeFi.


Change collateral factor of DPI on Polygon from 45% to 65%


Do nothing


Cream front-ran the larger money markets in listing DPI. This attracted 10% of all DPI to the platform on Ethereum. Given the current gas situation on ETH, incentivising Polygon use will maintain Cream’s advantage in retaining the small-money users that deposited DPI. Now that Aave listed DPI on ETH, Cream can frontrun the asset again on sidechains like Polygon with a CF ratio that is similar to the ratio on ETH v1.

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Dex liquidity is on Sushiswap Polygon: $324.35 | DPI | SushiSwap Analytics

However, I do think almost all TVL would come from migrating to Polygon from ETH.

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Totally agree with the motivation for this.

Index Coop has been making a lot of progress on its goal to make DeFi investment more accessible, and had over 16k unique holders of its flagship investment product: DPI

Raising the collateral factor has the potential to onboard new people + increase market size.