Whitelist DPI token for Vesper Pools

[Mringz]

Title: VIP-XX
Status: Proposed

Summary

Proposal to whitelist Defi Pulse Index (DPI) as deposit assets for the Vesper Pools.

Background

Index Coop is the largest on-chain index provider with just over $400 million in assets under management across four products: DPI, MVI, BED, ETH2xFLI & BTC2xFLI. Our goal is to make crypto investing more accessible by creating index products that showcase the value of Defi.

For more analytics into our products check out our Dune dashboard.

Abstract

In this proposal, we intend to provide information as to why we believe the listing of DPI will be beneficial to the Vesper protocol and the community.

Expectations

Conduct research on whether DPI is suitable for inclusion on Vesper protocol. Research the potential revenue a DPI pool can generate for holders.

The underlying strategy employed will include depositing 90%+ of the DPI held in the vault into lending protocols AAVE, C.R.E.A.M, Alpha Homora V2 or Rari Fuse Pool 19 (With scope to add more platforms as more yield opportunities become available). Strategies will be maintained and upgraded as directed by the Vesper community and Vesper Pool Ops.

Liquidity will be bootstrapped by assigning VSP from community treasury, at a level recommended by OpComm.

Although, the interest rates of the DPI on lending protocols are low now. Index Coop does plan to increase the lending rates of these markets by building leveraged products on them. Similar to ETH2xFLI & BTC2xFLI a DPI2xFLI product would increase the interest rate of the DPI lending markets as the DPI2xFLI product will DPI borrow in order to create the leverage needed to create the DPI2xFLI product.

DPI is also closely correlated to ETH & BTC. Meaning it will experience less volatility relative to other governance tokens. This is due to the fact that the token tracks a basket of tokens and reaps the benefits of diversification.

Listing DPI has additional benefits for the Vesper community as by creating a DPI Vesper pool it will create more extrinsic productivity opportunities for DPI which assists in the adoption of DPI which ultimately results in more adoption of VSP as the token is a component of DPI. This also complements Vesper marketing as well, since this pool can be presented as an easy way for institutions and individuals to gain exposure to the Defi category in general while building a position via accumulated yield over time.

Specifications

DPI Token Address: 0x1494ca1f11d487c2bbe4543e90080aeba4ba3c2b

1. Whitelist DPI token.
2. Create DPI pool
3. Deploy pool to beta, for live mainnet testing.
4. Send to auditors.
5. Deploy to pool production.
6. Assign VSP to the production pool.