Status: Proposed Authors: @overanalyser @allan.g Created: 3 January 2022 Discussions to: https://gov.indexcoop.com/t/iip-121-extend-fli-parameter-delegation/3591 Quorum: 109,069 [2,181,385*0.05]

Simple Summary

Extend IIP-56 for the delegation of FLI parameter management to the FLI Work Team indefinitely.

Abstract

IIP-45 established a work team composed of Index Coop contributors, DeFi Pulse, and Set Labs who were given collective authority to update FLI product parameters. Subsequently, IIP-56 extended this delegation through 31st January 2022.

This proposal seeks to extend the delegation indefinitely, with automatic renewal at the time of Index Council elections.

Motivation

IIP-45 was originally proposed to allow a small set of subject matter experts to manage the risk parameters associated with FLI products without requiring individual IIP’s.

This delegated authority has been utilized on a number of occasions:

• BTC2-FLI parameter change #4
• BTC2-FLI parameter change #5
• ETH2-FLI parameter change #7
• ETH2-FLI parameter change #8

Larger, more material changes to the FLI products still require IIPs and snapshot votes as they are outside the scope of the delegation (ex. Multiple exchange support)

Altogether, the delegation of responsibility has worked as planned to reduce governance overhead while allowing the FLI Work Team to act quickly on behalf of the Index Coop.

Specification

The FLI Work Team will be comprised of individuals from the following groups:

• DeFi Pulse: @ChrisG @snasps
• Set Laboratories: @puniaviision @setoshi @richard
• Automated Indices Pod (Index Coop): @afromac @sidhemraj @allan.g

The process will be:

1. The FLI Work Team will discuss and identify parameter change requirements.
2. A member of the FLI Work Team will post a short description of the change to the forum and state that the FLI work team is in agreement (a poll is not required).
3. The forum post must be live for 24 hours without any dissent from other FLI Work Team members.
4. The change can then be made once these criteria are met.

In scope parameters include:

• Supply Cap
• Max Trade Size
• Slippage Tolerance
• Ripcord Max Trade Size
• Ripcord Slippage Tolerance

Out of scope parameters include:

• Changes to the bot whitelist parameter (ex. IIP-39)
• Fees for the product
• Recentering Speed
• DEXs for Rebalancing

This delegation will renew automatically after each Index Council election cycle, unless otherwise opposed or revoked.

IIP vote specification:

FOR

• Extend the mandate for the FLI Work Team and delegate parameter management indefinitely.

AGAINST

• Allow Delegation to lapse on the 31st January 2022, and revert to IIP and Snapshot for all parameter changes.

Copyright

Copyright and related rights waived via CCO.