Dear CREAM community, this proposal outlines the case for listing DEFI5 as collateral on CREAM. DEFI5 is a passively managed DeFi index product from indexed.finance, a decentralized protocol for passive portfolio management on Ethereum.
For: List DEFI5 as collateral
Against: Do nothing
DEFI5 was created to gives crypto users exposure to the top 5 DeFi projects by simply holding the index token, in addition, DEFI5 token holders earn around 25% APY via swap fees from AMM pools. Since launch DEFI5 has grown to around $20m in TVL.
- DEFI5 is a passively managed index of the leading DeFI projects: Uniswap (UNI), Aave (AAVE), Compound (COMP), Synthetix Network Token (SNX) and Curve Dao Token (CRV)
- DEFI5 is the top-performing index in DeFi since its inception at the end of December with over 400% growth.
- Meta-governance for DEFI5 is enabled for COMP and UNI. This allows indexed.finance (NDX) governance token holders to vote on-chain with the tokens in the Index.
The indexed.finance team has built a strong community of 4,000 discord members and 9,500 Twitter followers. The team aims to push the DEFI5 index as a simple product for new users to Ethereum to gain exposure to the DeFi sector.
MOTIVATION & BENEFITS
DEFI5 is not listed as collateral on any platforms at the time of writing. However, it is regarded as a leading product with the second-highest TVL of any index on Ethereum. Even though the market cap is around $18m, the underlying tokens are prime collateral as they are considered DeFi blue-chips.
Benefits for CREAM:
- Increased TVL for Cream: Listing DEFI5 token as the primary place would bring a flow of TVL in the form of DeFi backed collateral to borrow against it (current market cap of DEFI5 is $20m, however, there is significant growth potential as index products become mainstream).
- Increased brand-awareness: indexed will fund a marketing campaign to drive awareness to CREAM and DEFI5 products.
- Access to NDX token holders: 4,000 holders and the wider Indexed.finance community of 10,000+ people.
- Symbol: DEFI5
- Blockchain Type: ERC20
- Role of Token: Utility
DEFI5 is currently listed on Uniswap, Quickswap (Polygon) and integrated with 1inch. DEFI5 is available across a number of wallets such as Zerion, imToken, Zapper and Argent.
We look forward to discussing this proposal with the community.