Extend PWG Elected Term to June 30, 2026
TL;DR
Formally extend Protocol Working Group (PWG) members elected term to June 30, 2026, and implement an expansion of KPIs to reflect increased responsibility, workload and transparency. This includes a proposed update to the monthly stipend to support the group’s evolving role in protocol stewardship.
Background
The Indigo Protocol Working Group (PWG) is a dedicated team of experienced contributors, focused on strategic research, protocol optimization, data analysis and governance. With a strong foundation in protocol mechanics and market dynamics, the PWG plays a critical role in advancing Indigo’s mission to become the most decentralized and resilient protocol on Cardano.
Over the past three years, the group has delivered across multiple dimensions, from user experience advisory to data-driven analytics, and from incentive refinement to external protocol partnerships. Members of the PWG have contributed significantly to incentive design, protocol analytics, feature ideation and DAO governance.
The continued engagement and expanding scope of responsibilities position the PWG as a critical driver of Indigo’s long-term success.
PWG Work To Date:
The Protocol Working Group has consistently delivered practical contributions that support Indigo’s ongoing growth and protocol optimization. Below is a summary of our most impactful contributions:
Research and Strategy Design for Buybacks 2.0
The PWG has led the research into an optimized buyback strategy (Buybacks 2.0) leveraging on-chain data and simulations to select the strategy. With the goal to make buyback orders more effective in offsetting emissions and supporting the long-term sustainability of iAssets.
Liquidity & Stability Incentives Research and Management
We’ve actively researched and advised on the optimal distribution of incentives between Liquidity Providers and Stability Pool participants. This includes balancing rewards, adjusting to protocol interest rate changes, and ensuring a sustainable incentive structure that aligns with protocol health.
Ongoing Data Analysis for Protocol Refinement
The PWG continuously gathers and analyzes data to guide qualitative improvements to the protocol. This includes tracking LP behavior, stablecoin dynamics, borrowing trends, and new asset integrations across Cardano. These insights inform parameter tuning and systemic enhancements designed to push Indigo toward optimal efficiency.
Indigo Insights Development & Expansion
In collaboration with Labs, we played a central role in designing and deploying key upgrades to Indigo Insights on the dApp UI. This includes new charts and metrics such as the Redeemable vs. RMRs, Collateral History, HHI (Herfindahl–Hirschman Index) for Collateral Distribution, and Minted Supply Over Time, empowering the community with deeper, actionable protocol analytics. The community can expect multiple new features to be deployed in the next months.
Protocol Feature Ideation and UX Enhancements
We continuously identify areas within the protocol where user experience or system logic can be improved. From subtle refinements to future upgrade proposals, our role is to ensure the protocol evolves in a way that benefits both users and the system’s robustness.
DAO and Community Engagement
The PWG maintains regular communication with the Indigo DAO and its broader community, contributing to governance discussions, answering questions, and keeping contributors informed on protocol developments.
Ecosystem Representation and Strategic Partnerships
We actively represent Indigo across the wider Cardano ecosystem and facilitate strategic collaborations. This includes our successful coordination with Wanchain, leading to a cross-chain iUSD pool reaching 1.3M ADA in TVL, and our engagement with Minswap’s partner fee program, unlocking new revenue streams for the DAO via iAsset trading activity.
Cross-Group Collaboration
We work closely with POG, Labs and Foundation to align protocol improvements and ecosystem strategies.
Oversight of Treasury Use and DAO Expenditures
As stewards of the protocol, we serve as watchdogs for the DAO treasury, monitoring fund allocation and advocating for prudent use of capital in alignment with DAO interests.
iAsset Parameter Analysis and Adjustments
Ongoing research and analysis of iAsset parameter settings within the protocol. Parameters such as Maintenance Ratio, Liquidation Ratio and Redemption Ratio can be adjusted towards optimal growth of the protocol.
Revenue Strategy and Treasury Diversification
The PWG has taken the lead on ideating and proposing mechanisms to diversify the Indigo treasury and generate sustainable revenue, ensuring long-term financial resilience for the DAO.
DAO Constitution Review
We are actively engaged in the ongoing evaluation and refinement of the Indigo DAO Constitution, helping shape governance in a way that remains adaptable, clear, and effective.
Over 30 Protocol Improvement Proposals Contributed
To date, the PWG has collectively proposed and/or contributed to over 30 protocol improvements, showcasing our commitment to continuous development and strategic alignment with DAO interests.
Proposed KPI Additions and Expansions
As the Indigo Protocol continues to grow in complexity and scale, the responsibilities of the PWG must evolve accordingly. This expansion reflects both the deepening of our current strategic efforts and the introduction of new initiatives that demand increased coordination, technical execution, and time investment. Rather than shifting focus, these proposed KPIs represent a broadening of our scope and a maturation of existing workstreams, ensuring Indigo remains competitive, efficient, and transparent in an increasingly dynamic ecosystem.
Buybacks 2.0 + TWAP Strategy Management
Following the TMP2 proposal, the PWG together with the Foundation is now authorized to actively manage and coordinate buyback strategies. This includes the combined use of Buybacks 2.0 and TWAP mechanisms, which will require frequent evaluations, simulations, and adjustments based on evolving market data.
Indigo x Minswap - LP Algorithm Management
Project Catalyst Fund13 allocated funding for the Indigo x Minswap Proposal to develop Peg Stabilizing Liquidity Pools. This will require PWG to use real-time market data to actively manage LP fee algorithms until this new system can be fully automated.
Growth of Strategic Protocol Partnerships
Building on the success of the Wanchain collaboration and the Minswap partner fee program, the PWG is developing a pipeline of strategic alliances designed to expand Indigo’s footprint and utility. These initiatives require extensive coordination, negotiation, and technical integration efforts.
Research and Implementation of Emissions Optimization
As the market environment evolves, the PWG will lead in proposing and testing data-driven emissions strategies, aiming to support the long-term economic health of Indigo and maintain balance across incentive structures.
Standardized Reporting and Transparency Practices
To improve communication and accountability, the PWG will produce quarterly public reports summarizing research findings, strategic discussions, and actionable outcomes. These will be accompanied by quarterly AMA sessions to maintain direct engagement with the DAO and broader community.
Increased Communication and Outreach
The group will also launch and manage a dedicated PWG Twitter account, helping to bridge the gap between technical research and community visibility, as well as promote protocol knowledge and transparency.
Improved Data Analysis Tools
Indigo Insights is an example of the data analysis tools the PWG have been able to provide to the DAO. PWG have ideated multiple additions to the collection and aggregation of data that can be effective tools for understanding all things Indigo.
Rationale for KPI Expansion and Stipend Adjustment
Over the past three years, the Protocol Working Group (PWG) has accumulated substantial experience and become increasingly integral to Indigo’s strategic direction. Through consistent collaboration with Indigo Labs, and now with the Indigo Foundation, the PWG has evolved from a contributor group into an operational arm of the protocol, responsible for ongoing research, strategic planning, incentive modeling, and protocol oversight.
With the recent passage of Labs TMP2 proposal, the PWG and Foundation now hold broader authority to coordinate and adjust buyback mechanisms, combining Buybacks 2.0 and TWAP strategies in response to dynamic market conditions. Alongside expanding strategic partnerships like the Wanchain dual incentive program. This work builds on existing responsibilities and involves ongoing market analysis, coordination, and responsive strategy tuning. These efforts support Indigo’s continued growth through deeper collaboration and technical alignment.
As Indigo matures, the expectations and responsibilities placed on the PWG have grown significantly. The group is now expected to operate with a higher degree of professionalism, aligning more closely with the Foundation and other contributors in shaping the protocol’s future. This level of engagement is essential for Indigo’s ongoing decentralization and long-term sustainability.
Proposal
In recognition of the increased scope, workload, and responsibility outlined above, this proposal seeks to:
- Extend the current PWG term through June 30, 2026.
- Provide a monthly lump sum stipend to 6000 INDY/month
- This adjustment reflects the significant growth in expected duties, the expansion of KPIs, and the commitment to operate with greater accountability and professional standards, while fostering closer collaboration with the Indigo Foundation.
- Stipends will be paid monthly, within 10 days following the end of each month of active service.
- In cases of early resignation or removal, stipends will be prorated to reflect the actual duration of service during that month.