0xfa0142fe…25casent to0x665339c6…2673·#22,873,173·view on Etherscan
# Basket Constituent Maintenance: IPOR Deprecation, DRV Reallocation, and LIT Migration
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**Abstract**
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This proposal seeks to amend the DeFi Growth Index (DGI) portfolio by addressing three tokens: IPOR, DRV, and LIT. Specifically, it proposes to:
Remove IPOR, which has been deprecated, and add FUSN to the basket upon completion of its airdrop.
Remove DRV due to insufficient liquidity on Ethereum and facilitate its transfer to Base or Derive exchange for conversion to USDC, with proceeds reinvested into existing DGI constituents.
Complete the migration of LIT to BUNNI by swapping LIT for BUNNI on the Bunni exchange, with support from the Reserve team. These changes aim to maintain the DGI’s alignment with its objective of tracking high-growth DeFi projects while ensuring liquidity, and portfolio optimization.
**Rationale**
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The DGI is designed to hold tokens from early-stage DeFi projects with innovative mechanisms, established market demand, and strong growth potential. The following issues necessitate immediate action to uphold these criteria:
**IPOR Deprecation:** IPOR has been deprecated, and its replacement token, FUSN, will be airdropped based on a prior snapshot of IPOR holdings. Retaining IPOR in the DGI is no longer viable, and adding FUSN post-airdrop ensures continuity of exposure to the project’s ecosystem.
**DRV Liquidity Constraints:** DRV lacks sufficient liquidity on Ethereum, where DGI operates, violating the DGI’s requirement for tokens to be available on at least two major decentralized exchanges with adequate trading volume (minimum 7d trading volume of 10% of market cap). Removing DRV and converting its holdings to USDC on a supported chain (Base or Derive exchange) will allow reinvestment into liquid, compliant constituents.
**LIT Migration to BUNNI:** LIT has migrated to BUNNI, requiring a swap to maintain exposure to the project’s updated token. This migration aligns with DGI’s goal of holding tokens that reflect the latest developments in their respective protocols.
These changes are critical to mitigate risks such as liquidity constraints, deprecated assets, and misalignment with DGI’s inclusion criteria, thereby protecting holder value and optimizing portfolio performance.
**Proposed Actions and Specifications**
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**IPOR Removal and FUSN Addition**
Action
Remove IPOR from the DGI basket immediately, as it is deprecated. Add FUSN to the basket once the airdrop is complete and FUSN is listed on at least two major decentralized exchanges (e.g., Uniswap, Curve, or Balancer) on Ethereum.
Specifications
Verify the completion of the FUSN airdrop and ensure FUSN meets DGI inclusion criteria:
- Market capitalization between $10 million and $1 billion.
- Minimum 7d trading volume of 10% of market cap.
- Audited by recognized security professionals within the last 180 days, with critical/high-risk findings resolved.
- Not classified as a security by relevant regulatory authorities.
- Allocate the weight previously assigned to IPOR (pro-rata based on current holdings) to FUSN upon inclusion, subject to rebalancing during the next quarterly review (August 2025).
- Coordinate with the Reserve team to confirm airdrop logistics and FUSN’s on-chain availability.
**DRV Removal and Reinvestment**
Action
Remove DRV from the DGI basket due to insufficient liquidity on Ethereum. Transfer DRV holdings to either Base or Derive exchange, swap for USDC, move USDC back to Ethereum, and reinvest into existing DGI constituents.
Specifications
- Engage Reserve and Derive teams to facilitate the transfer of DRV to Base or Derive exchange, where liquidity is available.
- Execute the swap of DRV for USDC on the chosen exchange, ensuring minimal slippage and optimal pricing via on-chain Dutch auctions managed by the Reserve Protocol.
- Transfer USDC back to Ethereum and allocate proceeds proportionally to existing DGI constituents (e.g., MORPHO, FLUID, COW, etc.) based on their current weightings.
- Ensure all transactions are transparent, recorded on-chain, and audited for accuracy.
- Target completion of the swap and reinvestment within 30 days of proposal approval, pending team coordination.
**LIT to BUNNI Migration**
Action
Swap LIT for BUNNI on the Bunni exchange to complete the token migration, with support from the Reserve team.
Specifications
- Coordinate with the Reserve team to execute the swap of LIT for BUNNI on the Bunni exchange, ensuring the swap aligns with the migration terms (e.g., 1:1 or protocol-specified ratio).
- Verify that BUNNI meets DGI inclusion criteria (market cap, trading volume, audit status, regulatory compliance).
- Maintain the weight previously assigned to LIT for BUNNI, subject to adjustment during the next quarterly review.
Complete the swap within 30 days of proposal approval, pending Reserve team support and exchange availability.
**Timeline**
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- 2025 Jul 8: Proposal submitted to the Reserve Protocol governance forum..
- 2025 Jun 9 - 11: On-chain voting period.
- 2025 Jun 12: Proposal outcome executed.
- 2025 Aug - Sep: Next quarterly review to finalize FUSN inclusion and rebalance the portfolio.