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 Pulse Yield Products (PINT & PAY) in a timely manner.

Work Team Analysis

The work team analysis for the Pulse Yield Products (PINT & PAY) can be found here.

Product Requirements

The PRD for the Pulse Yield Products (PINT & PAY) 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 Pulse Yield Products (PINT & PAY) proposal exceed Snapshot’s character count limit. Below is an abbreviated proposal. Check out this forum post to read the full proposal.

================================================ Title: Pulse INTerest (PINT) & Pulse Aggregate Yield (PAY) Indices DG2 Author(s): Pulse Inc & Matthew Graham Created: 01-04-2021

Simple Summary

The initially proposed Pulse Aggregate Yield Index (PAY) – previously Stable Yield Index (SYI) – was a yield index comprising three risk tranches on Ethereum Mainnet. Realizing that too broad of a composite index may run the risk of not addressing a clear target audience it was decided to separate out these three tranches into their own indices. Doing so will enable users to create a portfolio according to their unique risk tolerance and yield demand. The low-risk and medium-risk tranches are now PINT (Pulse INTerest Index) and PAY (Pulse Aggregate Yield Index) respectively.

All Pulse Yield products follow the same core design elements to capture the best risk adjusted yield on USD stablecoins within DeFi. Yield is aggregated across DeFi into a single ERC20 token that can be easily traded. As yield accumulates, the price of the PINT and PAY token steadily increases.

Motivation

Yield indices appeal to investors seeking to hold a portion of their portfolio in USD stablecoins. PINT is designed for investors who seek as part of their asset allocation a yield aggregating product that only uses the safest yield sources in DeFi – whether based on risk management or liquidity considerations. PAY on the other hand is more suited to investors who are comfortable with additional protocol risk in order to achieve double-digit annual yields using stablecoins. The potential to create and maintain a third index with significantly higher yield, risk, and turnover is left for future development, as well as variations on other networks.

Pulse Yield products are designed for holders to passively earn and compound stablecoin yields. By buying the respective token, holders eliminate the problem of having to maintain a diversified productive stablecoin portfolio that includes costly rebalancing and reinvesting of non-stablecoin incentives. For those of us who like the simplicity of holding a single position, PINT and PAY will become the go to ERC20 token.

By being a basket index of selected yield opportunities, PINT and PAY solve many problems for yield seeking investors:

• Not enough time to keep up with the fast paced DeFi ecosystem
• Difficulty to accurately comprehend and understand the various risks associated with each product
• Which yield opportunities to invest in to maximise returns given the associated risks

For DAO treasuries, fund managers, and retail investors alike, the Pulse Yield product offering allows them to gain access to a diversified productive stablecoin portfolio in a single transaction.

The launch of products with distinct risk profiles allows investors to create custom portfolios based on their own risk budget by combining PINT and PAY. This use case is particularly appealing to DAOs seeking to diversify a portion of their treasury and that may have liabilities with different durations. DAOs do not have to spend time and effort on the yield opportunity selection process and can instead focus on larger asset allocation decisions.

It is worth noting that even the yields expected from the low-risk PINT product are higher by an order of magnitude compared to US TradFi yield products such as CDs or savings accounts.

Index Coop - Core Value Proposition

Pulse Yield products provide a unique opportunity to introduce tokenized yield aggregation by simplifying the user experience – just like FLIs did for leverage products.

Key reasons for Index Coop to launch PINT and PAY:

• Offer a product targeting the fast growing stablecoin market
• Diversify revenue with the inclusion of a market cycle neutral product
• Build integrations / relationships with DAO treasuries
• Address a new user base of yield focused investors
• Pioneer the first tokenized yield aggregator in DeFi
• Offer a compelling product for yield starved TradFi investors