YIP: Treasury to Invest in DeFi Pulse Index Set

Basic Summary/Abstract

We propose to purchase $250,000 worth of the DeFi Pulse Index Tokenset (DPI) using the Yam treasury. This will help diversify the treasury away from full exposure to yUSD tail risk, give exposure to the rise of DeFi, increase awareness by aligning with a popular DeFi info resource, and demonstrate a major use case of the treasury.

Motivation

YAM is currently heavily exposed to the risks of yUSD including DAI, USDC, TUSD, and USDT risk, Curve smart contract risk, and Yearn Vault smart contract risk. By allocating treasury funds to the DPI Set, we diversify some of that risk.

While we are eliminating potential downside risk, we also get exposure to new upside. By investing in a basket of DeFi cryptocurrencies, the YAM treasury has the opportunity to grow alongside the broader DeFi markets, rather than solely relying on stablecoin yield.

Finally, this showcases one of the fundamental use cases of the treasury by investing in other DeFi assets and interacting with other DeFi protocols.

Risks

While we limit the risk exposure to yUSD, but do take on price risk to the underlying DPI assets as well as TokenSets smart contract risk.

Specifications

An on-chain governance vote would use treasury funds to purchase the DeFi Pulse Index Set.

  • For
  • Against

0 voters

3 Likes

I’m down. More activities is always good. :partying_face:

1 Like

Disagree with this proposal. I think we can deliver stronger returns to the treasury with less risk yield farming UNI and sushi with ETH stable coin pairs. This proposal exposes us to small cap and does not take advantage of profitable yield farming climate.

4 Likes

I also disagree with this proposal. I think we should turn to ETH. We could fix yam-eth pair and also could turn to mining UNI/Sushi

disagree,i think we should turn to eth.the eth is more valueable and useful than the DPI

also this will make more sense

For.

PROS: Index based investing is huge in equities for a reason.

CONS: Leaving Yield on the table. IE: KNC, SNX, YFI…etc, all are yielding at the moment but require participating in governance / interacting with systems.

FUTURE: Potentially Index Set gets it’s own Yearn Vault if it gets on-boarded within Aave / Compound / Maker.

4 Likes

An enthusiastic yes from me! I feel that the DPI is sufficiently diversified to represent a relatively conservative investment in the space with significant upside.

disagree, we should choose safe investment

I vote for against, the idea of DeFi Pulse is cool, but this seems a relatively new project, the potential risk can be high at this stage…

I think it’s a bit high risk for the treasury, but I like the thinking. People will get “upset” when it goes down.

And when market goes up, people will get “upset” if we don’t have it

Doesn’t work that way.

We will see, only the future knows. However, as a yam bag holder, I will be upset that we don’t hold some DPI. I cannot be the only one. And if I am not the only one, then the use of “we” is accurate.

Didn’t went well for 2017/18 ICOs that held their treasury or parts of treasury in crypto or ETH.

should jam the DPI into alpha homora at 1.75x