Create: "Indexcoop Shield Mining" IIP

IIPS/iip-015.md

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+---
+iip: 15
+title: IndexCoop Shield Mining
+status: Proposed
+author: Luciano (tw @Luciano_vPEPO)
+discussions: https://gov.indexcoop.com/t/iip-015-indexcoop-shield-mining/660/15
+created: 2021-01-04
+---
+
+## Simple Summary
+
+Enable INDEX Shield Mining incentives for the IndexCoop protocol for 10 weeks with an issuance of 0.05 INDEX per NXM per week targeted (target 12,000 INDEX total or 1,000 INDEX per week to attract 40,000 NXM enabling about 1.6M USD worth of covers to be bought at a reasonable rate of ~6% per year)
+
+## Abstract
+
+Allocate 12,000 INDEX towards Nexus Mutual’s Shield Mining program for the IndexCoop smart contracts with the following parameters:
+
+* Shield Mining program runs for 12 weeks.
+* Shield Mining program will leverage Nexus Mutual’s Shield Mining contracts.
+* 12,000 INDEX represents 0.12% of the total issuance and about 0.24% of the unallocated issuance.
+
+The low_cost_risk_limit is set to 50,000 NXM which would enable a ~2.5% cover rate per year, this could be achieved either organically or by increasing the proposed Shield Mining incentives allocation.
+
+#### FOR
+
+* Allocate 12,000 INDEX towards Nexus Mutual’s Shield Mining program
+
+#### AGAINST
+
+* Do not allocate INDEX towards Nexus Mutual’s Shield Mining program
+
+## Motivation
+
+The DeFi Pulse Index has attracted more than 100 million USD in assets, it’s critical we give users multiple options to protect themselves in case of an incident. Protocols like ours and DeFi as a whole are in such an innovative phase that I think it’s in the users best interest to acquire insurance.
+
+Nexus Mutual is the leading provider for smart contract insurance with over 600M USD coverage bought in their insurance programs.
+
+Nexus Mutual’s Shield Mining details: https://medium.com/nexus-mutual/shield-mining-is-here-85067a30ab06
+
+**Additional Motivation** = Set Protocol is currently full and no further covers can be emitted, either enabling more covers to be bought directly through IndexCoop or Set Protocol would enable users to protect themselves from the downside of an smart contract incident.
+
+## Specification
+
+1. We would precise the team to submit the Nexus Mutual’s form to enable coverage buying on their protocol: [https://forms.gle/CDKrEyR9PJUBSdu78
+](https://forms.gle/CDKrEyR9PJUBSdu78)
+2. Once IndexCoop has been added on Nexus Mutual, the team can coordinate with NM team when to begin the Shield Mining program.
+
+3. Marketing launch of the IndexCoop Shield Mining program.