Title: Prioritize INDEX tokens for bond approval for widespread DeFi bluechip meta-governance power

DEPARTMENT or DAO: Growth

Draft Proposal Link: https://near-diploma-a92.notion.site/LOBI-Bonds-f94591801e514378afebd8ec09db5ea1

AUTHOR(S): @kiba

PROPOSAL: Prioritize Index Coop's governance token INDEX for bonding to use for meta-governance in various DeFi protocols through their DPI holdings

PURPOSE AND VISION: Acquire 110k INDEX tokens with the goal to reach quorum on Index Coop meta-gov proposals to control $150m of Defi bluechip governance power. This will make LOBI the biggest voter on top DeFi platforms like UNI, AAVE, and COMP (details below).

IMPACT: $150m of governance power purchased for 1/100th (110,000 INDEX) of market price. Acquisition of heavily undervalued asset into treasury.

ABSTRACT:

Index Coop (IC) makes crypto ETFs, including DeFi Pulse Index (DPI) the biggest in the market with ~$150m in TVL. IC indexes are fully backed and redeemable meaning IC is responsible for custody of all assets for their index investors. This has led to them controlling nearly 1% of circulating supply for major DeFi DAOs. In order to streamline the process for voting on proposals with DPI they created a MetaGovernance Committee (MGC) that's responsible for deciding votes if quorum isn't met and executing votes once a decision has been made by INDEX voters or the MGC itself. If LobisHQ is able to seize a medium-large position, quorum's would be met, further enabling & proving the ability of LobisHQ to fairly decentralize a larger protocol's governance, while gaining massive strategic value, at great price/leverage. If passed, Lobis will also as a by-product start to be backed by AAVE, UNI, Compound, Maker, Sushi, Yearn, Synthetic and Rari tokens, by extension of the IC and DPI synergy. Additionally IC has significant governance power across DeFi to bootstrap LOBI's power & value during this initial phase.

DESCRIPTION**:**

Index Coop (IC) makes crypto ETFs, including DeFi Pulse Index (DPI) the biggest in the market with ~$150m in TVL. Their indexes are fully backed and redeemable meaning IC is responsible for custodying all assets for their index investors. This has led to them controlling nearly 1% of circulating supply for major DeFi DAOs. The great thing about buying INDEX is they accumulate governance power for us by growing their products. E.g. they are adding ENS to the Data Economy Index (my product with them) so LOBI automatically gets exposure to ENS governance without having to issue more bonds.

$1 of INDEX buys $4 of bluechip DeFi governance power (DPI mcap / INDEX mcap) making efficiency of buying INDEX better than any other token (including CVX, currently at $1.1 / $1). We call this leveraged meta-governance. Since quorum is rarely met for Index Coop meta-gov votes, LOBI should seek to acquire 110,000 INDEX tokens (5% of circulating supply, worth $1.8m currently) in order to ensure all meta-gov votes pass. This means LOBI can control $150m of governance power with only $1.8m of investment. 100x leverage! IC is one of the biggest voters for UNI, AAVE, COMP, and YFI so acquiring INDEX expands LOBIs reach and power base. They are in the process of passing a new product with Bankless that will include CVX, gOHM, TOKE, SPELL, etc. so we will be purchasing those tokens at a discount, more efficient than any other protocol with similar intentions to LOBI.

IC also controls enough AAVE and UNI (and COMP?) to create their own proposals on these protocols which is critical to help integrate LOBI and OHM tokens into the DeFi ecosystem. FEI already bought 100k INDEX for meta-gov purposes. They used this to get FEI listed on AAVE using Index Coop meta-governance .

In order to streamline the process for voting on proposals with DPI they created a MetaGovernance Committee (MGC) that's responsible for deciding votes if quorum isn't met and executing votes once a decision has been made by INDEX voters or the MGC itself. If LobisHQ is able to seize a medium-large position, quorum's would be met, further enabling & proving the ability of LobisHQ to fairly decentralize a larger protocol's governance, while gaining strategic value. If passed, Lobis will in effect start to be backed by AAVE, UNI, Compound, Maker, Sushi, Yearn, Synthetix, Rari, ENS, and many more tokens, by extension of the IC and DPI synergy