Hi all - hope you had a great Christmas break!
I’ll get right to the point: some progress has happened regarding our presence on Polygon, and it’s worth talking about and getting some thoughts from the DAO.
The Indexed infrastructure is now live on Polygon as of Christmas Eve, and was rounded out by the deployment of the Narwhal swap router there yesterday.
We’re now at the stage where we can deploy indices on Polygon whenever we reach a consensus about what should be included.
To that end, there are some decisions to be made about whether a first Polygon index should only include tokens that are native to Polygon, or whether there’s space to include tokens that have been bridged over from Ethereum mainnet.
To that end, I’ll create a Snapshot soon that’ll run for a few days to gauge interest.
In any case, what needs to happen now is a collection of tokens that we - as a DAO - think deserve a place in such an index. For the sake of deploying a first one, my personal opinion is that we can be fairly loose about what gets included provided it’s legitimate - lower gas fees means that we can maintain a much wider candidate list without it costing hundreds of dollars to update scoring strategies.
A few things to note:
Firstly, the oracle - which uses Quickswap to obtain TWAPs of tokens - gauges against WETH pairs rather than WMATIC - there appear to be a lot more decently-liquid pairs against the former.
Secondly, we - for now - remain bound to a single AMM for oracle pricing: if a token is exclusively available on SushiSwap (Polygon) then we can’t price it until the metaoracle is finished and deployed (which we’d likely have done by now were it not for the exploit taking two months of our time).
Thirdly, we remain bound to the ‘at most 10 assets can have weights bound to them at any one time’ constraint of the Indexed V1 pool factory, and the number N of weights is fixed upon pool deployment. Once Indexed V2 is released, existing pools can be upgraded and freed from this restriction: we could drop the number of assets bound in an index to as low as 2, or as high as 100.
My personal belief is that this first index should be a CC10 of sorts on Polygon (although not named as such). To that end, the first name that popped into my head earlier was something like the Aggregate Polygon Exposure (APE) Index, that simply captures the largest assets by market cap depending on the filters of bridged-vs-native and sufficient Quickswap liquidity. Happy to get booed down on any point there - especially the name - but that requires folk to give their thoughts rather than just assuming that ‘devs will do something’.
@Kuza - I know you’ve been working on a list of tokens (and their QS {X}-WETH liquidity) that are native to Polygon. If you can pop them here as a reply, I’ll do the same with bridged assets. Everyone else reading, if you’ve got a particular favourite that’s missed out or you think deserves inclusion, pop in and say as much and why!
Looking forward to hearing what people have to say!