Proposal to Launch DPI/USD Market

Background

DPI (https://www.indexcoop.com/dpi) is a DeFi index constructed by DeFi Pulse and the Index Coop. DPI imo is the best defi index created thus far and has a dedicated community behind it thinking deeply about construction and rebalancing. Notably index coop indices doesn’t suffer the issue where 1 token going to 0 brings the whole index to 0.

In traditional finance index futures are hyper liquid, with the ES trading >$100b daily. A DPI future allows traders to get levered exposure to DeFi as a vertical. The only comparable product in the space is FTX’s DEFI-PERP that does good volume ($13m today), but the DPI index differentiates across a couple axis imo

Key Metrics

  • Uniswap DPI/ETH Liquidity $35m
  • Uniswap DPI/ETH 24hr Volume $3m
  • Very heavy DeFi native holder base
4 Likes

DPI is a pretty good addition if Perpetual wants to get into DeFi. Interest is a bit lower than the DeFi blue chips, but also allows Perpetual to be at the forefront for something that is likely to have much more volume in the future.

hey guys,

this is AG from Index Coop, community managing DPI. we would love to see the launch of DPI/ETH futures market. thanks, @will_sheehan for bringing it up.

On our conservative estimates, there are currently around 5,200 unique addressed holding DPI. We have also done some analysis and it turns out that DPI in incredibly sticky. Half of all DPI addresses with more than 500 DPI (roughly $90,000) don’t use it for liquidity mining or yield farming. In fact, they haven’t moved it at all since purchase.

Uniswap liquidity, currently at close to $40 million, is also quite sticky. We have reduced liquidity mining incentives twice (first in December and at by another 35% in the beginning of January) and while the first instance did result in the loss of liquidity, the second time around there was no such effect. Might be explained by rising markets or that no re-staking was required.

Here’s historical Uniswap volume as well for your reference.
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We have also tried DPI options on Opyn a couple of weeks ago and would love to also have DPI futures of perp.fi.

Let me know if there’s anything you need from us.

Cheers,
AG