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.