Status: Draft SIP for discussion
Create sDPI to follow the pulse.inc methodology used for the on-chain fund DPI. This would run alongside sDeFi.
This draft SIP proposes adding support for minting and exchanging the following synth: sDPI with a 1% trading fee.
To create a synth that matches the largest on-chain DeFi fund. This will allow the creation of sDPI:DPI pairs on DEX’s to improve the liquidity of DPI. Improved liquidity will assist traders wanting exposure to the DeFi sector and so increase DPI AUV and trading fees for sDPI / Synthetix stakers. In addition, there may be liquidity mining of CRV tokens for a curve pool.
The synth would be created in the same way as other L1 synths (/L2 synths). The Synth would use the chainlink price feed for DPI.
This price feed is based on the INDEXcoop .com DPI on-chain product based on pulse.inc methodology (market cap weight of the circulating supply of included DeFi governance tokens). As an acknowledgement of the methodologists role in this product, 20% of the trading fees on sDPI would be allocated to pulse.inc.
Trading fees would be 1% inline with other synths and there would not be an associated iDPI.
DPI is the largest most liquid DeFi fund and has established itself as the industry benchmark. Creation of the sDPI synth will open up low slippage trades via sDPI:DPI liquidity pools and cross asset swaps and so reduce trading friction within the DeFi Sector. This should increase AUV and trading volume.
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