[S4 Project Budget] Bankless Indexes

[0x_Lucas]

Bankless Indexes

Authors: @0xLucas
Squad: @0xLucas, @LemonadeAlpha, @FunkMasterFlex, @Bo, @bgov, @
Date Created: December 2nd, 2021

Summary

Bankless Indexes compose of the BED index and GMI index. These are core products for the DAO, providing easy access to the major investments themes in crypto. BED is a beginner index composed of BTC, ETH, and DPI and provides easy access to the core themes in crypto w/ passive management. GMI is our newer index tapping into the innovation in DeFi or “DeFi 2.0” and takes on a more actively managed approach.

Both products direct 100% of the revenue for the treasury via its streaming fees.

Season 3 Accomplishments

• Launched GMI, a DeFi 2.0 index featuring a 1.95% streaming fee.
• Launched the GMI Hot Tub, a Rari Fuse pool providing utility to GMI constituents
• Onboarded BED and GMI onto Argent + ZigZag, creating a fiat onramp to Bankless Indexes
• Translated Bankless Index content into more languages via our International Media Node Program
• Integrated Bankless Indexes into Mango, allowing users to DCA into BED and GMI via fiat
• Grew the indexes to an aggregate of over $5M, on track to generate over $50K in revenue for the DAO.

Season 4 Goals & KPIs

• Scale BED and GMI to 8-figure market caps, driving a significant amount of revenue to the DAO treasury
• Launch a GMI liquidity mining program to deepen liquidity and integrate the index into the GMI Fuse Pool
• Begin the exchange listing process for the BED index
• Engage in a marketing campaign to grow awareness of BED and GMI
• Developer more relationships with protocol DAOs, institutions, and investors to buy Bankless Indexes

Budget

Address: 0x39b8889bEEa01e80210eB56e96D131B00c5e9D9C

Total: 750,000 BANK

Liquidity Mining Program: 500,000 BANK
Marketing Lead: 50,000 BANK
Business Development: 75,000 BANK
Methodologists (GMI): 125,000 BANK

We’ve also retained the entirety of our S3 budget of 900K BANK in anticipation for the liquidity mining program. We’re waiting for exchange issuance on GMI to help facilitate minting the of the index.

Value Creation

100% of all revenue from Bankless Indexes accrue to the DAO treasury. As it stands today:

• BED: 0.25% streaming fee w/ a 50% split to the DAO. At current market cap $2.9M, bDAO is earning $3.6K per year. If we reach our goal of $10M in S4, this would generate $12.5K per year.
• GMI: 1.95% streaming fee w/ a 40% split to the DAO. At the current market cap of $2.2M, bDAO is earning $17.1K per year. If we reach our goal of $10M in S4, this would generate $72K per year for the DAO.

This does not include the INDEX rewards, which composes a majority of the bankless indexes revenue model!

• For
• Against

[Brustkern]

I’m on this team and I’d like to add my vote of confidence for this project.

These guys & gals are quietly crushing it for the bDAO with financial products that, when scaled, will provide the bDAO with an impressive revenue share. This collab with Index is one of the unsung heroes of the bDAO’s revenue generation efforts.

Lucas and the squad are giving the Bankless Indices full attention, and I believe this will be a very productive product for us well into the future.

[wongisright]

This is an extremely exciting effort for the DAO to back.

Cosign the entire team working on this, and the “why” behind the effort.

[jameswmontgomery.eth]

generate over $500K in revenue for the DAO

but presently:

BED generates $12.5K per year
GMI generates $17.1K per year

Can you clarify?

[links]

I’ll be the first to admit my understanding of DeFi concepts is low, but I rest easy knowing you’re working on this stuff for the DAO.

Some questions:

• Are you planning on deploying 1.4M BANK on liquidity mining this season?
  • what is liquidity mining anyway? is it similar to what we did on Olympus Pro where we invested a bunch of BANK to secure LP tokens so we could earn fees on our liquidity?
• Is business development a role? What do they do?
• What do methodologists do?

Thanks!

[0x_Lucas]

Added an extra zero by accident - the remainder (non-streaming fees) comes from INDEX rewards.

[0x_Lucas]

1. Final numbers for the liquidity mining program haven’t been set yet. There may be personal funds coming from HQ members to boost the allocation. Tl;dr on liquidity mining - provide liquidity and earn token rewards by locking your LP tokens. More here

2. Business Development is responsible for reaching to other treasuries to see if they’re interested in diversifying into our indices, helping with exchange listings, etc.

3. Methodologists - mainly for GMI - manage the composition of the indexes. BED is fixed and doesn’t change often but we’re constantly evaluating new projects/weightings for GMI (Ben takes point on this)