Yea it’s a very scarce coin. The uni v2 INDEX-ETH uniswap pair has only 11k INDEX in it. This deal would be for 100k INDEX (1% of the supply). So OTC seems to be the only option for this size Uniswap Info
Liquidity risk does seem uniquely high here. But so do the benefits mentioned above.
Personally I’m strongly in favor of this.
[Slight addition] the uni v3 INDEX-ETH pair has 17k INDEX in it
Just throwing it out there, but why couldn’t an INDEX purchase be done with just FEI and TRIBE? If the total purchase in option 2 is only 0.04% of the DAO treasury (at 25%), theoretically you can cover 100% of the purchase in TRIBE. This should raise the value of TRIBE altogether. Even with FEI you can write a bonding curve and complete the purchase with minting FEI for purpose.
In discussing with DeFi Pulse I advocated for purely FEI and TRIBE but they also wanted some ETH to be able to sell for operational expenses, so the two options presented were the only workable ones.
If we wanted to sell it would likely also be OTC unless on-chain liquidity conditions change, however I think the strategic nature of this purchase would warrant a longer time horizon view.
Please refrain from voting on both options as this is confusing and can mislead other TRIBE voters (see FIP-6). If you are in favor of option 2, please vote for this as your only vote. From above, if a purely FEI/TRIBE purchase is not acceptable to Index Coop, then I would support option 2 also.
I understand it can be confusing but in approval style votes I will continue to vote for all of the options I approve of. This allows broader preferences to emerge in a multiple choice vote, and is something I value highly. If there is a clear option that I prefer to the exclusion of all else in the future, I’d vote solely for that.