IPOR Protocol
  • The IPOR Protocol Documentation
  • IPOR Protocol V2
  • Research / Whitepapers
    • Conceptual Whitepaper
  • Audits
  • Community Links
  • IPOR Protocol Roadmap
  • IPOR FAQ
    • About the IPOR Protocol
    • Using the IPOR Protocol
    • Liquidity Mining
    • Swaps VS Perps
    • $FUSN Snapshot
  • About IPOR
    • Who Uses IPOR and for What?
    • Why IPOR?
    • IPOR Manifesto
  • IPOR Fusion ⚛️
    • Fusion Introduction
      • Defragmenting DeFi Yield
    • Why Fusion?
    • Users
    • Use Cases
    • Architecture Overview
      • Atomists
      • Alphas
    • Vaults
      • Access Management
    • Fuses
    • Security
      • For Liquidity Providers
      • For Vault Owners
      • Testing
    • Open-source Repository
    • Aragon Integration
  • IPOR Index
    • What is the IPOR Index
    • Working with the IPOR Index
    • IPOR stETH Index
  • Interest Rate Derivatives
    • Interest Rate Derivative
    • Index Calculation
    • IPOR Publication
    • IBT
    • Indicative Term Sheet
  • Automated Market Maker
    • The Automated Market Maker
    • Liquidity Provisioning
    • IPOR Swaps
      • Hedging example with Morpho protocol
    • Spread
      • Math behind the demand spread
    • Risk oracle
    • SOAP
    • Liquidations
    • Asset Management
  • Tokenomics
    • IPOR Token
    • Token distribution model
    • Power IPOR
    • Liquidity mining
      • Math behind the rewards contract
    • Power Token Liquidity Mining for Developers
  • IPOR DAO
    • IPOR DAO Governance
      • Discord - All Channels
      • Discord - Open Governance Forum
      • Discord - Formal Governance
      • Snapshot - Formal Governance
      • Governing Multisig wallets
    • Decentralizing IPOR
      • Configuration Parameters
  • Developers Docs
    • Fusion
      • Developing а Fuse
      • Configuring Pre-hooks
    • Deployed Contracts
      • Ethereum
      • Arbitrum
      • Base
    • Working with IPOR Router
    • ABI
    • V2 changes
    • IPOR Oracle
    • Vault Wrapper
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  1. IPOR Index

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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Last updated 1 year ago

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