CIP #1 - Update CLI rebalancing periods

CIP #: 1

Title: Update CLI rebalancing periods

Status: Proposed

Discussion link:

Created: 13th September 2021

Executive Summary

Crypto market conditions change very fast, so this proposal intends to update the rebalancing periods of CLI from 3 months to 2 months.

Problem Statement

Crypto market operates twenty-four seven and globally. Token prices can fluctuate a lot in a very short period of time. Over one month, token prices and market capitalizations can differ a lot. A rebalancing period of three months does not ensure that CLI index tracks the latest performance of its underlying tokens: BTC and ETH.

Proposed Solution

Overview

This proposal intends to address the problem stated in the problem section by updating the rebalancing periods from 3 months to 2 months.

Rationale

The rationale behind this proposal is to ensure that CLI can better adapt to the fast-moving crypto market and better benchmark the prices of underlying tokens.

Since token prices and market capitalizations in the crypto industry fluctuate a lot in a short timeframe, a more frequent rebalancing helps ensure that CLI composition is up-to-date with the latest changes in the market. However, more frequent rebalancing would also mean higher transaction and gas fees that might cause CLI to deviate from the prices of underlying tokens. As a result, we consider that a two months rebalancing period is a good balance to keep CLI price up-to-date while not incurring a lot of transaction overheads.

Specification

The Cook Protocol team needs to update the smart contract so that anyone can invoke the rebalancing function of CLI two months after the previous rebalancing.

2 Likes

Approved the creation of this proposal. It will be open for Q&A for 3 days

2 Likes

Great! Thank you for the approval.

COOK community members, feel free to post your questions here

1 Like

Amazing. Thank you for proposal.

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So will most of our opinions be considered?? Seeing that the market is volatile

That’s cool. I have been waiting for this sir

1 Like

Hahaha the news is here already, staking/farming. Cook is pumping

Cook is on it’s way on creating history!

2 Likes

this is good. When this Q&A start??

1 Like

yes, I pasted the discussion link on the proposal to change the rebalancing period from 3 months to 2 months.

1 Like

Isn’t two months too short? How about a month?

2 Likes

For me, 2 months is enough

1 Like

It’s now open for questions and answers right?

2 Likes

Yes, I saw it on the tg group. It’s open for questions and suggestions

Have you seen the lastest news on tg link?

2 Likes

This is amazing! Thank you for the approval

1 Like

The AMA is on now. You can check it out

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Yeah. Don’t miss out :rocket:

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No one will miss this

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I’m a big fan of cook but i think 3 months is too long

1 Like