Powerpool NFT Index powered by dAMM

Proposals
#1

Hello everyone! :wave:

:art: :man_artist::woman_artist:

I have been working on a Powerpool NFT Index that provides exposure to the huge interest and potential in the NFT sector. NFTs are poised to capture trillions of dollars in market value from traditional markets. If we segment the current NFT market then the main sectors are: art, collectibles, physical goods, Defi for NFTs, and the meta-verse. In the future prominent sectors will expand to include music, documentation, and events.

Index Composition :pie:

  1. Enjin (32.1%)
  2. Decentraland (22.6%)
  3. Sandbox (12.2%)
  4. Rarible (10.3%)
  5. Lukso (7.5%)
  6. NFTX (6.2%)
  7. Superfarm (5.8%)
  8. Origin Protocol (3.3%)

Alternatives: :arrows_counterclockwise:
9. Flow
10. Aavegotchi
11. Axie Infinity

NFT Index Weight (0.5MCAP+0.5SUSHI+UNISWAP
NFT Index Weight (0.5MCAP+0.5SUSHI+UNISWAP841Ă—520 32.9 KB

Reasoning: :thinking:
The projects chosen are leaders, and considered blue chips, in the NFT field across different segments with enough liquidity across Uniswap and Sushi. The weight algorithm used for DAMM is

0.5MCAP + 0.5[SUSHI + UNISWAP VOLUME]

This algorithm balances the index based on liquidity across DEXes and market cap which better balances the composition.

Additional Data :1234:

Screen Shot 2021-03-16 at 5.34.07 PM
Screen Shot 2021-03-16 at 5.34.07 PM2286Ă—530 128 KB

Further Points :spiral_notepad:
The Index’s weights or composition may change if projects offer a boost to the index.

Index Name :name_badge:
Please offer suggestions for the Index’s name! :ballot_box:

Acknowledgments: :medal_sports:
Thanks @Sergey for creating the weight algorithm. Additional thanks to the rest of the Management Board team for prioritizing this Index. @vasilysumanov @Zero @DrGonzo.

Like and Retweet my Twitter Update

Look forward to hearing the community’s thoughts! :thought_balloon:

6 Likes
#2

Great work! I just hope there will be more yield-bearing NFTs with extra utility in the near future. Those will be the ones investors will flock to in my opinion.

2 Likes
#3

whooo! so happy this is finally at proposal.

I absolutely believe that we should include the proposed Alternatives (especially FLOW and AXS) into the final Index Composition, not only for diversification purposes but just the fact that they cover the various NFT “sectors”.

is there a idealized “cap” on the number of projects we want included in this? I only ask as I believe it will be a great idea to include DEGO (www.dego.finance) into this index. shows promising growth (recently and future) while the project itself is a combination of DeFi + NFT. definitely look into them for consideration although im clueless as to their Sushi and UniSwap liquidity.

other than that, i second what @Hello mentioned about having more utility based tokens included, but im STOKED to get this sorted out and voted on

1 Like
#4

I also have figures on DEGO. I would be willing to add them to the composition. I prefer to add more projects to lower the allocations to Decentraland and Enjin to allow more potential upside to the index.

2 Likes
#5

brilliant. im absolutely with you, more projects will create a much better overall index as well.

was the initial % weighting determined by mkt caps?

1 Like
#6

It is a combination of their product, usage, willingness to boost, and their marketing.

1 Like
#7

sounds like an awesome concoction for the decision making process. with DAMM being implemented from the start, will there be a volatile shift in % weight like what happened with ASSY?

i suck at names but im of the opinion that we should very much include the PowerPool brand within the indices names as to easily distinguish. some of the largest ETFs today are totally branded.

maybe something like “Power NFTI”? i know NFTI is already taken but well, that one isn’t built on PowerPool tech lol

1 Like
#8

Good question. I would say no because the drastic shift was caused by the delta between the weights of the AMM vs dAMM index.

1 Like
#9

okay sweet.

do we just vote on including the alternatives? how do we figure that out? im for all of them listed.

#10

Yes, I’ll propose additional alternatives to this index that we can then vote on.

1 Like
#11

awesome. im also of the opinion that a lot of end users are also looking for the high diversity factor especially with new asset classes, for risk management as well as profit potential. is the plan to have this be the starting list and have an easy onboarding process for new projects?

cant wait to hear other’s opinions and questions.

1 Like
#12

yes, you’ll see this with YETI too as we add new tokens in the Yearn ecosystem to the index.

1 Like
#13

Nice proposal :slightly_smiling_face:.

Correct me of I am wrong but I assume there will be a mining program?

Like I suggested in the YLA Boost proposal Add CVP Boost to YLA I think that with yla boost coming and nft coming the 150k cvp set aside for boost should be split between the two. So I suggest a 75k cvp mining program for nft index for one month.

2 Likes
#14

Yes, we’ll need to discuss the CVP boost and if any of the included projects want to provide a boost as well.

1 Like
#15

That would be awesome if any of the NFT projects help subsidize this index.

1 Like
#16

The value for them is added exposure and more importantly that a percentage of their token supply will be locked up.

1 Like
#17
#18

will xCVP be live before this goes live?

#19

Lets go with this. Like the idea of 75k for yla and this nft index for the first month for those who boost. None for the non boosters

2 Likes
#20

Bootstrapping DAMMs is not an easy task. I think we will get $1m TVL first and only after that weights changing will be activated.