DAO led by Set Protocol and DeFi Pulse to launch governance token, with liquidity mining starting tomorrow.

The decentralized asset management protocol Set Protocol and the DeFi data platform DeFi Pulse announced the formation of a decentralized autonomous organization "Index Coop" and launched liquidity mining to issue governance token INDEX.

DeFi Pulse Index (DPI)

According to previous reports, the decentralized asset management protocol Set Protocol and DeFi data platform DeFi Pulse collaborated in mid-September to launch a new decentralized financial index product called DeFi Pulse Index DPI. Specifically, the product consists of ten selected tokens from various DeFi tokens in the DeFi Pulse database and is issued as a "multi-asset collateral" token based on the Set Protocol, similar in concept to Taiwan's 0050 or 0056 fund products.

On the other hand, since the DeFi Pulse Index DPI itself is an ERC20 standard token, it can achieve strong composability in the DeFi ecosystem, such as being used as collateral on platforms like Aave or Compound, and can also be a liquidity asset supported by liquidity mining.

Although the product has been launched for less than a month, it has already accumulated $2 million in locked assets and 1,300 token holders, achieving initial success in the market.

Community Establishes DAO and Issuance of Governance Token

This week, the management community behind DeFi Pulse Index announced the formation of a decentralized governance organization "Index Coop" and the issuance of the governance token INDEX. In the announcement released yesterday onMedium, Index Coop stated:

"The token binds Index Coop with its holders, enabling community-led ownership and governance."

To facilitate continued growth, INDEX holders will be responsible for important decisions regarding the index, including developing new indexes, managing community funds, adjusting product fee standards, and enhancing index performance. The total token supply is 10 million, to be fully issued over three years, with 70% allocated to the community portion, to be distributed to DPI holders before block height 10980212 (1%), liquidity mining program (9%), index rewards program (7.5%), and community treasury (52.5%), while the remaining 30% is for the team portion, to be allocated to Set Labs (28%) and DeFi Pulse (2%).

Based on current information, the economic model does not include a mechanism to reward INDEX holders for governance.

Liquidity Mining Program

The liquidity mining program for INDEX tokens has only one mining pool option, where users must provide liquidity on Uniswap for the DPI/ETH pool and stake DPI/ETH Uniswap LP tokens on thisplatform to earn mining rewards. The liquidity mining program will start at 03:00 on October 8th, Taiwan time, and will last for 60 days.

According to Uniswap data, the currentliquidity pool has accumulated assets worth over $9 million and continues to grow.