Proposal: Add $DEFI5 as a collateral asset on CREAM

SUMMARY

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

BACKGROUND

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.

Key facts:

  • 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.

TOKEN

  • Symbol: DEFI5
  • Blockchain Type: ERC20
  • Role of Token: Utility

EXCHANGES

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.

REPOSITORIES

https://github.com/indexed-finance/indexed-core

SECURITY AUDITS

https://docs.indexed.finance/protocol/security

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We look forward to discussing this proposal with the community.

4 Likes

DEFI5 is my favorite concentrated DeFi exposure index to recommend and use myself, as it not only tracks what I want to be in but earns a passive yield through fees. I like the approach of the community at INDEXED in general and think DEGEN will catch a strong bid as well as the cycle for the space in general pulls out of this small lull. Adding utility for DEFI5 would be great for passive investors and support a great project, while also providing a boost to the index itself (good because I think it is a well constructed project which deserves to grow) and CREAM because it will bring more users, and may even be a small step towards unlocking some TVL from more passive participants in the space (more of a reach/bonus). I support this proposal.

2 Likes

HI, Iā€™m not a CREAM user yet, but I would be if I could deposit DEFI5. I think index tokens in general make great collateral and are great holding assets and holding assets like DEFI5 are always looking for places to deposit or stake to earn more yield or use as collateral.

2 Likes

Appreciate your support, if this goes well we would definitely look to apply with DEGEN

2 Likes