[Asset List Update] Degen Housekeeping and Refresh (DEGEN)

With the Fei-Rari merger and RSR contract change there are some mandatory housekeeping actions needed for the Degen index. It has also been noted in Discord that the current composition of Degen is almost a year old and is due for a refresh for some of the components to more fully live up to its name.

Remove RGT
With the recent Fei-Rari merger, the RGT token is being migrated to TRIBE and the expiration date has been set to August 1, 2022: Tally | Eip155:1:0x0bef27feb58e857046d630b2c03dfb7bae567494 | 35352825965290593619963926287136976535992260019512232369033890490308293973890
DEGEN currently holds 21,764 RGT worth $362K and there is still $19.2M of liquidity on Sushi for the RGT-WETH pair. The RGT>TRIBE PegExchanger has a ~26.7 exchange ratio which is about 1.2% premium over the comparable spot price ratio of ~26.4. My conclusion here is that the easiest thing to do is to remove RGT from DEGEN and let the index controller slowly swap it out in favor of the remaining token list.

Swap RSR for new RSR
@Norsefire noted that DEGEN also needs a tweak to move over to the RSR contact token that’s been airdropped into the DEGEN contract, details here: Reserve Rights (RSR) contract update scheduled for 01/13/2022 | by Sinatra | Reserve | Dec, 2021 | Medium
Due to the old RSR contract token having been locked from transactions effective 1/13/22 we need to remove the old RSR token from the index immediately (it can’t be swapped out) and add the new RSR contract token as the component index.

New components for DEGEN
@redphonecrypto recently crowdsourced a list of DEGEN candidates, here is the list (updated 2/21/22):

Token Category UniV2 Liq ($M) MCAP ($M) DEGEN Eligible?
LUNA Alt 7.67 19,236 No
FTM Alt 1.46 4,228 No
RUNE Defi 1.17 1,088 Yes
AR Storage n/a 1,258 No
CVX Defi n/a 1,148 No
ASTRO AMM 0.50 89 Yes
TOKE Defi 125.70 317 Yes
ATOM Alt nil 7,282 No
NEAR Alt nil 5,776 No
RBN Defi 0.95 76 Yes

As we are still in V1 infrastructure, we still need Uni V2 ETH liquidity pairs. ASTRO, TOKE and RBN all look suitable and RUNE was an original component of DEGEN and was replaced by RGT last summer, there is an option to put it back in the index at a lower price.
Adding TRIBE should also be considered if we want to keep the Fei-Rari merge.

Components to Remove
Here is the list of current DEGEN components:

Token Category MCAP ($M)
1INCH DEX 599
WOO Defi 377
REN Bridge 280
OCEAN Data 203
RGT Defi 189
RSR Stable 182
ALPHA Defi 140
POLS IDO 124
MIR Defi 90
BADGER Defi 85

I’d like to suggest we remove the top and bottom MCAP and components being 1INCH and BADGER. With the removal of RGT and RSR that opens up to 4 slots for new tokens. This suggestion is not informed by any fundamental analysis of 1INCH and BADGER, simply based on market capitalization.

Please share your thoughts and once we’ve gathered some input I’ll figure out how to put up snapshot votes for the changes, likely with quadratic voting since we have multiple elements to choose from for addition and removal.

2 Likes

I edited the original post with some better information about the RSR contract change and updated the MCAPs as of February 21, 2022.

As a preview of the anticipated snapshot votes you can participate in these surveys:

DEGEN Tokens to remove from Index
  • RSR Old Contract
  • RGT Merging with Fei (TRIBE)
  • 1INCH (Highest MCAP)
  • BADGER (Lowest MCAP)
  • Other (comment in post)
  • Do Nothing

0 voters

DEGEN Tokens to add to Index
  • RUNE
  • ASTRO
  • TOKE
  • RBN
  • RSR new contract
  • TRIBE Fei-Rari Merger
  • Other (comment in post)

0 voters

Awesome update - given the current restrictions around univ2, I am supportive of RBN, TOKE, TRIBE.

Voted to remove basically all those listed.

Thanks for spearheading this!

We need to remove RSR and RGT as a matter of some urgency (RGT has until August), and since we’ve already been swapped in the new RSR, it makes the most sense to do that using a temporary proxy upgrade, which @d1ll0n can hopefully start working on soon.

I’d like to see RBN in place of RGT, from that list provided above!