IndexDAO <> Olympus
TLDRL: IndexDAO will be a market cap/treasury weighted index of olympus forks introducing decentralised diversification to all members of defi 2.0. Index will hold gOHM as well as other rebasing tokens subject to community governance and due diligence. Index DAO has a strong focus on both the onboarding and education of beginners in the defi space and the ohmverse. Index DAO is creating a platform that can allow and facilitate access to the ecosystem and offer exposure to the rapidly growing industry as a whole while also offering diversification across a broad variety of well vetted ohm forks and the like to protect and grow the interests of the holders and expand the Olympus ecosystem.
Summary:
Create a formal partnership between IndexDAO and Olympus. Index will provide Olympus with 3.33% of it’s Governance token at launch to participate in governance and staking. Olympus commits to not sell Index DAO’s governance token. Index DAO will hold gOHM as a large proportion of it’s treasury starting with 33%.
Background:
Index DAO aims to be a market cap/treasury weighted index of Olympus forks. In traditional finance indexes such as the S&P 500, Dowjones, and the like are foundational instruments for institutional traders and funds that allow them to create further complex financial instruments to provide products and services to cater to their clients. These indexes also and potentially more importantly offer retail investors exposure to the market as a whole in one simplified product while also minimizing risk and maximizing return according to traditional portfolio theory.
With newly developed markets comes high returns but also a broad range of risk involving the likes of “rug pulls”, “zero-value added projects”, “poor management”, “poor direction” as well as other malicious or otherwise high risk issues. We at Index DAO have built a protocol as well as community centered around the axioms of “Education” & “Access” helping combat these risks associated with the ecosystem by empowering individuals with educational content and due diligence training and our offering of diversified solutions that can give access to the upside potential of the market while reducing the downside. We are building a platform that helps the OHM ecosystem as a whole make educated choices for themselves while also providing safe and high value products to choose from.
Network:
IndexDAO will be launching on AVAX for both the low fees and the fast transaction speeds achieved by the network for seamless usability. We also believe in the overarching concepts that are being built by the network and the ability for them to solve the scalability issues associated with blockchain through the use of subnets.
How will we manage our treasury?
IndexDAO will offer bonding for staked governance tokens of olympus forks first on avax with plans to expand multichain in the near future. Bond discounts will be adjusted to maintain holdings close to a market cap weighted index. On launch gOHM, wMEMO, INDEX/gOHM LP and MIM bonds will be available.
Following launch IndexDAO will expand the treasury to include additional rebasing tokens, subject to certain diligence and risk thresholds, and community voting. The treasury process will be community-led, so please come through to the Discord and let the team know if you have a rebasing token you would like to see included in the Index.
Most importantly, IndexDAO is aligned with the (3,3) ethos and will not be selling the treasury OHM - rebalancing will occur by adjusting bond intake rates and not by selling any treasury assets.
Starting Tokenomics
Liquidity Bootstrapping Event
In total 52,969 INDEX were sold during the liquidity bootstrapping event for a total of 310,164 MIM. The funds raised from this event will be split as such:
50% - Liquidity
30% - Treasury
20% - Development
INDEX will start with a supply of 105,000 INDEX which will be distributed as such:
Liquidity Bootstrapping Event (52,969 INDEX)
52,969 INDEX were sold during the liquidity bootstrapping event for a total of 310,164 MIM.
Initial Liquidity (20,000 INDEX)
20,000 INDEX tokens will be paired with gOHM bought with 50% of the MIM raised in the Liquidity Bootstrapping Event to create the initial liquidity on TraderJoe.
Marketing, Partnerships, Airdrops (12,031 INDEX)
12,031 INDEX will be set aside for marketing, strategic partnerships, and airdrops to support the long term growth of Index DAO.
Development Team (20,000 INDEX)
The Board of Directors will have 20,000 unstaked INDEX vested over the next 6 months to support the long term development of Index DAO. Since these are unstaked INDEX tokens they will not benefit from the rebasing rewards, preventing the Board of Directors from controlling too high of a percentage of INDEX tokens in the future.
What is in it for Olympus and the OHMies?
Index will be an accumulatooor and (3,3) holder of gOHM, providing demand support and soaking up liquidity for gOHM on AVAX. The protocol will also seek to capture the demand of the marginal DeFi investor who may not have otherwise invested in OHM (eg the new millennial DeFi investor who only invests in ETFs because they are a Burton Malkiel stan or the fence-sitter who doesn’t want to pick between frogs and Greek gods (NGMI, anon). A portion of Index’s demand is likely to be entirely incremental to gOHM.
Educating ohmies on the differences between forks as well as due diligence skills will create a more fluid and engaged community.
What do we ask of Olympus and the OHMies?
A large focus of our onboarding will be providing simple explanations of defi concepts and protocols. If you are in a position to speak on behalf of any project in the Ohmverse we encourage you to reach out and we will work together to create content explaining your project.
If you are a seasoned degen with any analysis or Due diligence strategies jump in the discord and contribute to our protocol discussions. For beginners please jump in and ask for help. You will be our next generation of teachers and community leaders.
You can read more about IndexDAO and the team here: https://indexdao.medium.com/introduction-to-index-dao-7de18dba2ff9
EDIT: Our plan is to actually run the LP with an Index/gOHM pair to maximise liquidity of gOHM on AVAX MIM/Index was our earlier choice.
