Gitcoin

Summary In partnership with Index Coop, we would like to propose the Gitcoin Staked ETH Index (gtcETH), which will provide diversified exposure to the top liquid staking tokens and share a portion of staking rewards with the DAO in support of public goods funding.

As part of this proposal, I am requesting we seed initial liquidity pool requirements to ensure this asset is available to those who would like to take advantage of it. That seed funding should come from the Matching Pool as the yield accrued will be used in the matching pool in the future (and we can always sell the LP position and recover our assets if we need them in the short term).

Vote This vote that will accomplish the following (a yes vote would do…):

1 - Formalize the relationship between us and Index Coop and enable co-branding and marketing of the new gtcETH product (if it passes the Index Coop governance)

2 - Move 100 ETH from the matching pool multi sig to fund two LP positions (50ETH each LP): 2.1 pair gtcETH against dsETH in a 1bp pool 2.2 pair gtcETH against ETH in a 5bps pool (The two pools ensure deeper liquidity and reduce swapping fees for moving into gtcETH while also ensuring arb opportunities exist between dsETH and gtcETH to ensure they stay near parity in price)

Work with Index Coop to rebalance the product on a ~quarterly/monthly cadence as needed.

A no vote would prevent us from funding the initial liquidity, but may not materially change Index Coop’s decision to build and launch the product for us.