Decision Gate 2 is the final vote for onboarding products to the Index Coop. A full overview of the product onboarding process can be found here.

A passing vote here signals a commitment by the Index Coop to launch the Bankless DeFi Innovation Index | $GMI in a timely manner.

Work Team Analysis

The Work Team Analysis for Bankless DeFi Innovation Index | $GMI has been posted here.

Product Requirements

The PRD document for Bankless DeFi Innovation Index | $GMI can be found here.

Profitability Model

The profitability model for Bankless DeFi Innovation Index | $GMI can be found here.

Go To Market Strategy

The GTM strategy for Bankless DeFi Innovation Index | $GMI can be found here.

Passing Thresholds:

• 10% or more of circulating supply must participate (2,181,385 * 0.10 = 218 138)
• 60% or more of participating tokens must vote FOR

The full-text Bankless DeFi Innovation Index | $GMI proposal exceeds Snapshot’s character count limit. Below is an abbreviated proposal. Check out this forum post to read the full proposal.

================================================ IIP: 102 Title: Launch the Bankless DeFi Innovation Index | $GMI Status: Proposed Author(s): Lucas Campbell, Ben Giove, Peter “Lemonade” Created: 12/07/2021

Simple Summary

BanklessDAO, in collaboration with Index Coop, seeks to launch the Bankless DeFi Innovation Index (GMI). GMI seeks to capture the performance of emergent DeFi application themes.

By relaxing some considerations for selection into Index Coop’s flagship DeFi Pulse Index, GMI seeks to provide exposure to experimental DeFi project tokens which are further out on the risk curve. Notably, GMI will seek to capture exposure to DeFi upstarts on a rolling basis by establishing a time limit on inclusion and a graduation system.

The utilization of an indexing strategy–and the provided diversification–offsets the risk of anyone or small group of assets rugging or otherwise failing. Through this curation, GMI allows passive exposure to this area for those lacking time or expertise.‌

Abstract

The Bankless DeFi Innovation Index is a simple composite index which will be built on Set Protocol. The index screens for promising early stage DeFi projects which are not yet considered “blue chip” and attempts to produce an optimal weighting via the use of a combination of square-root market cap, relative secondary market liquidity, and relative token dilution/emission scoring.

GMI maintains rolling exposure to early-stage and experimental DeFi upstarts by employing a ‘graduation’ system which retires components after specific term lengths (or if they become part of DPI’s constitution).

Motivation

Customer feedback has indicated that exposure to DeFi assets further down the risk-curve coupled with an indexing strategy would represent a compelling solution for them.

The DeFi landscape moves fast, and while customers are able to capture the appreciation of standard-bearing DeFi protocol assets through DPI, a vehicle taking a more risk-on approach and relaxing some requirements–including time in market, audits, anonymous teams, etc–allows us to capture the aforementioned desire for exposure.

GMI will seek to have no medium-long term crossover with DPI and a component will exit over the course of 2-3 rebalancing cycles should it be selected in. Additionally, assets within GMI which do not graduate to DPI will have a term limit - the idea being that the index should be ever-changing and not contain constituents for too long of a time frame.