Hi everyone,
The purpose of this thread is to both gauge the DAO’s interest in deploying the Indexed infrastructure on Polygon, and request a list from the DAO of the protocols that - in its opinion - are worthy of inclusion in a POLY10 index.
On the Indexed roadmap, increased cross-chain presence is a specific goal of ours. In that document, I suggested that the metaoracle that is currently being worked on as a component of our Balancer V2 upgrade is a prerequisite for the existence of a so-called POLY10 index on the Polygon network.
Having thought about this, this is not the case. We can deploy the core Indexed infrastructure on Polygon, utilising the TWAP price oracle of either Sushi Polygon or Quickswap depending on overall liquidity, using a bridged token (either NDX or dNDX) for the equivalent Governor Alpha.
Moreover, we can do this very quickly if the desire is there: a fixed deployment script exists (modulo some tweaks to bind to the new oracle source), and it wouldn’t cost much at all to deploy.
My thinking here in terms of this setup benefiting the DAO is that exit fees generated on Polygon can be routed to the same type of seller contract that will be deployed for dNDX on mainnet, and thereafter bridge the resulting WETH (perhaps via WMATIC, given base liquidity pairs) back to mainnet.
Given the performance of the DEFI5 and the CC10 since inception - and in the interests of launching something soon to take advantage of the attention on Polygon - I believe that a POLY10 index would be ‘best’ served by the core controller’s square-root of FDV scoring strategy. Bearing in mind gas costs, it’ll also be much, much cheaper to maintain a full list of 25 candidate assets (rather than the 10 within DEFI5 and 16 within CC10).
So, to that end: if the DAO approves of this idea, here is a statement of intent from Core:
- Once dNDX is launched, Core will look into rapidly deploying the current Indexed infrastructure on Polygon, and
- We appeal to the DAO to respond in this thread with those assets that they believe would be well suited to inclusion in a POLY10 index.
We are speaking with various parties to gauge how quickly support could be put in place for displaying dashboards for indices on Polygon, and potential liquidity rewards to bootstrap TVL. The Indexed UI will need to be upgraded to support multichain, but this does not preclude deployment of either the infrastructure or any index.
There’s a decision to be made as to whether or not candidate members of the POLY10 have to be Polygon-only: tokens such as Balancer and Curve exist on Polygon and are equally ‘valid’ as potential candidates, but this is - naturally, the DAOs choice. The CC10 has been bridged to Polygon, but you can’t mint or burn its tokens within it: instead you need to bridge them back to mainnet to do anything but trade it. A Polygon-native index, even if filled with ‘Ethereum’ tokens, would benefit from the ability to mint and burn on the cheap.
It is probably worth bearing in mind the existing inclusion criterion for CC10 assets when suggesting candidates for this list (modified slightly to ‘fit’ Polygon):
POLY10 Criteria
This category has the following criteria for inclusion:
- The token is at least a week old.
- No major vulnerabilities have been discovered in the token contract.
- The token’s supply can not be arbitrarily inflated or deflated maliciously. The control model should be considered if the supply can be modified through governance decisions.
- The token does not have transfer fees or other non-standard balance updates.
- The token meets the requirements of the ERC20 standard. Boolean return values are not required.
- The token has a fully diluted market cap of at least ${?} million.
- At least $1 million worth of liquidity is locked in the {oracle source} market pair between the token and WMATIC. This does not apply to WMATIC.
- The token is either a protocol token for an Polygon {or Ethereum?}-based project, a governance token for a DeFi project, or a wrapper token for a blockchain’s native currency.
Want to see this happen? Indicate as much here, and start suggesting candidates! It would be preferable for suggestions to take the form of -
- Asset name/ticker
- Market cap
- Liquidity levels on Sushi and Quickswap for X/WMATIC
- Purpose/category
- Why you think it’d be a good fit for a Polygon index
- simply so we can aggregate everything together in a consistent way.
Based on the results of this temperature check, I’ll create a Snapshot to log formal approval from the DAO.
- Yes
- No
0 voters