This Topic discusses the proposal to launch the Indigo Protocol (Indigo), and is a combination of the following previous Temperature Checks:
- Approval to distribute token at launch (CID QmYwqCVTsU7SLaZLUc2pQCq641uEHxT1EeNUAWoLYZcK5d)
- Approval of the Indigo DAO Constitution (CID QmYZiKRiCtWSKXGu4h5woAKgKftESoSQcuqxYsWbqJLG8J)
- Approval to adopt the Indigo Foundation (CID QmPf3wmBRWJKkK4GxFfuCqJ6XXrPEmazjweADZ9DbG2GE9)
- Approval of the Indigo DAO Voting Procedures (CID QmRPemr27LYce9jSGGjVddu2bccLQVeWcchbZBDG9F4JEp)
- Approval to launch three iAssets: iBTC, iETH, and iUSD (CID QmSuzjZcR3ZyGCh9hHaXkjoqx6sewmXdxSB3tiwyYWUQjF)
Proposal Details
As part of this proposal to launch Indigo, the following are included:
- The Indigo paper – summarizing how the protocol will function
- An agreement that the Foundation, as directed by the future Indigo DAO, will hire and compensate Indigo Laboratories, Inc. (the Labs), for future work towards ideating and developing the protocol
- The Indigo Token Generation Event
- The Indigo Liquidity Bootstrapping Event
The Indigo Paper
The Indigo paper (indigo-paper.pdf) is a detailed high-level description and specification for a synthetics protocol that, subject to approval by the community, could be deployed to Cardano. The Indigo paper is also published on GitHub as an open-source project, allowing all community members to access and provide suggestions.
The Labs and Foundation Services Agreement
An agreement has been executed (Indigo_Labs_x_Indigo_Foundation_Services_Agreement.pdf) between the Indigo Foundation and the Labs detailing that the Labs will perform development, maintenance, and administration tasks in relation to the Indigo Protocol as directed by the future Indigo DAO.
Token Generation Event
INDY will be the Indigo DAO’s utility token for use within the protocol upon mainnet launch. 35 million INDY shall be minted by the Labs and distributed as follows:
- 350,000 INDY to two or three DEXs approved by the Indigo community
- 350,000 INDY to participants within the Indigo community
- 21,000,000 INDY to one or more wallets (administered by the Labs at the direction of the Indigo Foundation on behalf of the Indigo DAO) to be used for community rewards distributions (Stability Pools, Liquidity, and Governance)
- 4,550,000 INDY to the DAO Treasury Reserve
- 8,750,000 INDY will be retained by the Labs, with 7,875,000 being distributed to team members under a two-year monthly vesting schedule
A full vesting schedule can be viewed in the tokenomics.csv spreadsheet, as well as more details in the Indigo paper.
Liquidity Bootstrapping Event
In partnership with Minswap, Indigo will begin a Liquidity Bootstrapping Event (LBE) on November 14th. The LBE will end on November 20th. The goal of the LBE is to use a community-driven and transparent process to discover a fair price for INDY. After the LBE starts, users can deposit ADA into the Minswap Launch Bowl to receive goADA tokens. Deposited ADA will be used to create INDY/ADA Liquidity Pools (a LP) after launch of Indigo. No ADA deposited into the LBE will pass through Indigo, the Labs, or the Indigo team.
350,000 INDY is allocated to bootstrapping liquidity, of which 262,500 INDY is allocated for Minswap. The resultant Minswap LP will consist of 75% of deposited ADA in the LBE paired with 75% of the allocated INDY (262,500). Depending on slippage analysis at the time of the LBE end date, 25% of deposited ADA in the LBE paired with 25% of the allocated INDY (87,500) will be used to create LPs on either one or two additional DEXs.
Current analysis suggests that if, for example, a minimum of 10M ADA is deposited during the LBE, then INDY will be distributed to three Cardano DEXs (Minswap, SundaeSwap, and WingRiders). If less than 10M ADA is deposited, then INDY will only go live on two Cardano DEXs (Minswap and SundaeSwap).
Proposal to Launch
As a potential future Indigo DAO member, do you approve, ratify, accept, adopt, and agree to all the aforementioned documents and information? If this Temperature Check is passed, and upon the deployment of Indigo, this proposal will be initiated as the first on-chain governance proposal for the Indigo DAO.
