Hello! I’m Ivan Martinez (Kiwi) from Cover Protocol! I would like to make a proposal to allocate NDX tokens to Cover Protocol shield mining bonus token rewards, in order to encourage liquid coverage for Indexed Finance.
Cover Protocol is a peer-to-peer decentralized coverage market place for protecting DeFi users from contract bugs, hacks, or economic exploits (ex: malicious flash loan attacks). Indexed Finance is a newly launched protocol that we think is a perfect candidate for coverage on our platform. Because coverage on Cover Protocol is fungible and relies on ERC20s, liquidity must be incentivized due to the risks of providing liquidity in a binary token model.
We handle this by allowing protocols (like BADGER or 88mph) to incentivize liquidity providers for their coverage tokens. Indexed Finance doing this would be a great way to keep users safe and farm with no concerns.
Recently at Cover Protocol we have made a great breakthrough in our liquidity structure. We would like NDX to be the first incentivized coverage protocol to try our new model!
Allocate 10,000 NDX tokens to provide liquidity rewards for Indexed Finance coverage tokens until end of March. After the coverage expires by the end of March, we can refresh rewards further through another proposal.
Why 10,000? 10,000 NDX is ~$220,000, for coverage until the end of March. This is based on 88mphs allocation which was around $157,000 until the end of February, getting around $1,000,000 of available coverage. I think this amount of tokens + our new liquidity model could attract much above that.