I like this idea mainly because of the hype around yfi. Its undoubtedly the largest name in defi right now, so attaching the powerpool brand to it could let us ride in its wake.
for the folks who didnt have a chance to read discord: we discussed the weights and I provided some numbers for the logic behind the YETI components weights
TLDR
Proposed 35% / 17% / 8% weights are proven by numbers with certain level of deviation which we can put aside of consideration as most of the projects included in YETI are very new (thus these deviation are statistically insignificant).
METHODOLOGY
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This conclusion obtained from a simple analysis of MCap, FDV, ADTV and TVL I ranked 3 market metrics (MCap, FDV, ADTV) and 1 operational metric (TVL) (see columnsV-Y) by weights, sum up these 4 ranks for each project to calculate cummulative index (see columns AA-AE), inverted the cummulative index and calculated INDEX weights (see columns AF-AG) to calculate the implied weights
*please note, column AB is calculated and inverted manually. as high FDV (FDV/MCap) is worse than low -
All ranks (AA-AE) are equally weighted for simplicity reasons and as we dont have any analysis allowing us to use tailor weights off the shelf
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Then I used the ratios (columns P-T), the metrics from the reference group of tier-1 DeFis and average/medians to sanity check the YETI weights obtained (see column AG)
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GMV and Revenues werent considered due to absence of reliable data
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Potential synergies and differences in business models were not considered (will do though for further analysis)
CONCLUSIONS
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For simplicity reasons I suggest to use the weights proposed by Ryan Watkins. The weights calculated here are slightly different (though pretty close to proposed ones), but this difference is statistically insignificant
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We can clearly see 2 groups - YFI+Sushi and others, with YFI+Sushi having ~50% weight.
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Exceptions include relatively low trading volumes for CREAM (just $3 mn ADTV), very high FDV/MCap for CVP (16.3x vs 1.7-2.0x medians for YETI and teir-1 projects respectively), and outlying MCap/TVL for K3PR (though it is not a relevant metric for the project)
- At the same time suggest to ignore these exceptions as for example PowerPool can burn 25-50% of TTS and significantly decrease FDV/MCap so as it will be in median range of tier-1 projects
- Most of the assets in YETI are pretty in line with tier-1 projects from trading comps analysis standpoint, while MCap/ADTV metrics are even better (2.1x median vs 8.1x median)
NEXT STEPS
- Add growth metrics for TVL
- Add fees collected
- Add # of unique wallets / active users and possibly growth metrics for them
- Add GMV, Revenue, Fees for YETI components
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YETI is launched: https://powerindex.io/#/mainnet/0xb4bebd34f6daafd808f73de0d10235a92fbb6c3d/supply
YETI value proposition for Yearn ecosystem and CVP community:
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Nice idea!
But…
If there is a demand in the market, then an offer must be given! And it will be great if PowerPool does it faster than others!
Only with the implementation you need to think carefully!
Choose decent protocols!
And a fair percentage weight distribution of the protocols!
Where did YFI 35% and SUSHI 17% come from?
The parts must be equal!
The name YETI is great! On hearing! I like.
I also want YETI to influence the success of CVP!
please see here
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