# \[Proposal\] Treasury Swap: Balancer \<\> Indexed **URL:** \ **Category:** General Proposal\ **Created:** [August 30, 2021, 10:48am UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188 "2021-08-30T10:48:13Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![DavisRamsey](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/davisramsey/32/973_2.png) [@DavisRamsey](https://forum.balancer.fi/u/DavisRamsey)\ **Post date:** [August 30, 2021, 10:48am UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/1 "2021-08-30T10:48:13Z")
**Motivation** Fernando [recently outlined](https://forum.balancer.fi/t/my-vision-for-balancer-protocol/2123) his vision for Balancer Protocol in which he said our long term success is entirely dependent on successful projects and protocols building on top of us. One of the most exciting use cases for Balancer is multi-asset index pools and it is critical we seek out and build relationships with other projects pursuing the index use case. [Indexed.finance](https://indexed.finance/) is a perfect candidate since they’ve already built several products on a forked version of Balancer v1. Bringing them into our ecosystem on v2 will not only add their current TVL to the platform but create a foundation to build upon in the future. [The newly commissioned Balancer Grants DAO will be interfacing with the Indexed team](https://ndxfi.medium.com/indexed-finance-balancer-grants-203495e00ffa) over the next few months as they build out the infrastructure needed to migrate their indexes to Balancer v2. Beyond that, it is important to engage both communities about how we can create the most effective index products. This proposal aims to accomplish that by giving each project “skin in the game” through a token swap. Benefits include - Treasury diversification into a revenue generating asset with upside potential - Distributes tokens into the hands of a long term ecosystem partner - Voting power for DAO proposals **Specification** 5,000 BAL from the Ecosystem Fund would be exchanged for the equivalent USD value of NDX tokens from Indexed DAO treasury using the 20 day smooth moving average price at the time that voting ends. Price feed will be BAL/USDT (binance) and NDX/WETH (Sushi). Balancer DAO will deposit NDX into dNDX with a lockup period of at least 1 year, once the contracts for dNDX have been deployed. Read more about dNDX [here](https://forum.indexed.finance/t/create-dndx-a-dividends-token-for-indexed-fee-revenue/610). Indexed DAO will deposit BAL into BAL/WETH 80/20 via single asset deposit. If/when Balancer launches the ability to lock BAL/WETH liquidity as proposed [here](https://forum.balancer.fi/t/proposal-staking-of-bpt-for-economic-and-governance-benefits/2113), Indexed DAO will lock their liquidity for a period of at least 1 year. In the interim, Indexed DAO is free to earn BAL rewards. Alternatively, we could pursue something like this: [https://medium.com/primedao/launching-bal-x-prime-the-first-dao2dao-pool-5fa730e603](https://medium.com/primedao/launching-bal-x-prime-the-first-dao2dao-pool-5fa730e603) _Poll ([view on site](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/1))_ ---
**Author:** ![bakamoto20](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/bakamoto20/32/343_2.png) [@bakamoto20](https://forum.balancer.fi/u/bakamoto20)\ **Post date:** [August 30, 2021, 6:35pm UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/2 "2021-08-30T18:35:58Z")
My only concern with what’s outlined is that we’ll be diluting NDX rewards, and similarly they’ll be diluting BAL rewards, although the amounts aren’t too large (at least on Balancer side, don’t know how much staked dNDX there is?). And a year potentially isn’t very long for the lock. I defo support some kind of treasury swap, makes sense. DAO2DAO pool looks interesting, although isn’t Prime competing against Indexed? ---
**Author:** ![DavisRamsey](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/davisramsey/32/973_2.png) [@DavisRamsey](https://forum.balancer.fi/u/DavisRamsey)\ **Post date:** [August 30, 2021, 6:40pm UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/3 "2021-08-30T18:40:31Z")
NDX circulating mcap is over 30 mln USD. USD value of this swap is ~140k. I think any dilution will be very minimal, but cannot know for certain as dNDX is not released yet. Maybe no one stakes, then this could be highly dilutive on their side. Don’t think it’s a concern of ours really tho? no clue what primeDAO’s business model is. No need to go through them for this option though, we just create a NDX/BAL pool on our own. I think staking option makes more sense tho, especially for us as NDX mcap is tiny. If they are successful, gains could outpace BAL and we’d suffer IL. ---
**Author:** ![bakamoto20](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/bakamoto20/32/343_2.png) [@bakamoto20](https://forum.balancer.fi/u/bakamoto20)\ **Post date:** [August 30, 2021, 6:42pm UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/4 "2021-08-30T18:42:57Z")
Yeah swap & staking sounds like it makes sense then, no need to over complicate. ---
**Author:** ![Fernando](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/fernando/32/56_2.png) [@Fernando](https://forum.balancer.fi/u/Fernando)\ **Post date:** [August 31, 2021, 10:53am UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/5 "2021-08-31T10:53:45Z")
Love the idea and agree with the benefits of long-term alignment between Indexed and Balancer. ---
**Author:** ![fomosapien\_eth](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/fomosapien_eth/32/601_2.png) [@fomosapien\_eth](https://forum.balancer.fi/u/fomosapien_eth)\ **Post date:** [September 1, 2021, 5:16am UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/6 "2021-09-01T05:16:00Z")
love the idea. DAO2DAO maybe a bit more over complication as well ---
**Author:** ![zekraken](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/zekraken/32/823_2.png) [@zekraken](https://forum.balancer.fi/u/zekraken)\ **Post date:** [September 3, 2021, 1:15pm UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/7 "2021-09-03T13:15:17Z")
I think the Swap and Staking option also conveys a stronger message around a long term partnership between the two platforms since you are locking away the tokens for 1 year. ---
**Author:** ![tongnk](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/tongnk/32/160_2.png) [@tongnk](https://forum.balancer.fi/u/tongnk)\ **Post date:** [September 6, 2021, 12:53am UTC](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-indexed/2188/8 "2021-09-06T00:53:23Z")
I’m generally on board with these forms of activities. If anything it might make sense for us to submit a proposal and create an ecosystem fund that specifically allocates DAO treasury to doing token swaps with protocols