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 MATIC 2x Flexible Leverage Index (Polygon) in a timely manner.

Work Team Analysis

The Work Team Analysis for MATIC 2x Flexible Leverage Index (Polygon) has been posted here.

Product Requirements

The PRD document for MATIC 2x Flexible Leverage Index (Polygon) 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 MATIC 2x Flexible Leverage Index (Polygon) proposal exceeds Snapshot’s character count limit. Below is an abbreviated proposal. Check out this forum post to read the full proposal.

Title: Launching MATIC 2x Flexible Leverage Index (MATIC2X-FLI) on Polygon Status: Proposed Author(s): Pulse Inc Created: 11-Oct-2021

Simple Summary

Pulse Inc proposes that the Index Coop manages a new index that provides target 2x leveraged exposure to the performance of Polygon’s native MATIC token, using the FLI strategy that was proposed in IIP-13.

In contrast to previous FLI products, MATIC2X-FLI will be launched on the Polygon network.

Abstract

MATIC2X-FLI is based on V0.1 of the FLI methodology that is also used for ETH2X-FLI and BTC2X-FLI. ‌

Motivation

Manually maintaining a leverage position requires continuous monitoring of the health of the position in order to avoid liquidation and incurs high gas fees when the position is frequently rebalanced.

‌Rationale

Flexible Leverage Indices (FLIs) solve this problem by wrapping a collateralized debt position in a single token that can be bought and sold on an exchange and by socializing implementation costs. Furthermore, FLI’s unique index algorithm reduces rebalancing needs by an order of magnitude. Emergency deleveraging is possible during Black Swan events for additional safety.