What is the IPOR Index

The IPOR Index (or indices)

There will be multiple IPOR Indices that represent different assets. For example, there may be an IPOR USDT, IPOR USDC, IPOR DAI, IPOR ETH, etc. Given that external protocols’ interest rates are fixed algorithmically based on overcollateralized loans, the IPOR serves as an adequate proxy for the Risk-Free (Rf) rate, as the collateral effectively mitigates default risk.

Index Adaptability and Modularity

The IPOR Index was imagined to be both adaptable and modular. The blockchain landscape and particularly DeFi markets are in constant flux, with protocols rapidly evolving, rising or falling in dominance, and new projects emerging. Given the constant change, the index must be able to adapt to market conditions and account for changes.

The Index calculation is designed to be updatable and modular, able to account for new protocols to be considered for inclusion or removal, changes in weighting due to market dominance, changes to the third-party code base, or other potential significant changes. Updates to the Index will be made via a transparent and democratic on-chain governance process handled by the DAO.

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