Proposal 30: Indices for Binance Smart Chain ecosystem

Summary
We propose to launch two indices on top of the Binance
Smart chain based on PowerIndex v2 Dynamic AMM tech:

  1. BSCI (Binance Smart Chain index) - BSC native projects and blue chips
    Initial composition: Pancake, Venus, Bakery, Trust Wallet, Spartan, Autofarm, Alpaca, Helmet

  2. EBSCI (Emerging Binance Smart Chain index) - emerging projects in BSC ecosystem, some of them were extended their services to Binance from Ethereum
    Initial composition: Alpha Finance, Linear, Injective, UNIFI, RAMP, DEGO

The weights for each token are presented in the Specification section.

A CVP Boost program is designed for these two indices.

Motivation
**Currently, Binance Smart Chain is the second largest chain by TVL after Ethereum. However, it still doesn’t have decentralized indices providing exposure to BSC-based assets.
The Binance community is one of the largest blockchain communities in the world, including Binance’s 80m Binance users. For Binance community members, indices can be a one-click solution for investment into Binance Smart Chain ecosystem. PowerPool’s ecosystem will benefit from this proposal by an increase in TVL growth, brand awareness, and community expansion.

Specifications
PowerPool Management Board analyzed 34 BSC ecosystem projects to propose the indices’ composition. Byproduct of this analysis, we propose launching of two indices: BSCI (Binance Smart Chain Index) - 8 projects are included and EBSCI (Emerging Binance Smart Chain Index) - 6 projects are included

Indexes implementation goals:
BSCI - all-in-one token, representing an investment in the BSC ecosystem.
It should be the S&P 500 of Binance Smart Chain that people will use for investing in BSC with the aim to be exposed to the BSC’s ecosystem growth.

EBSCI - all-in-one token giving exposure on proven/mature and/or high ADTV projects initially launched in ETH ecosystem and moving on BSC. Investors who hesitate to allocate capital in BSC-native projects will be able to get a one-stop point of access to the projects with high ADTVs on CEXes and UNI/SUSHI.

For both indices we propose M.Cap adjusted weighting based on Dynamic AMM.

BSCI composition

Based on MCap and ADTV, the PowerPool Management board selected 8 projects out of 17 considered based on our request.

Project Sector M.Cap, $mn Weight in M.Cap based index Comments
Pancake AMM / DEX 2 587 68% Largest DEX
Venus Lending / MM 536 14% Largest lending protocol
Trust wallet Wallet app 256 7% Flagship BSC wallet with huge user base
Bakery DEX+NFT 138 4% Second largest DEX + NFT leader
Autofarm Asset Manager 99 3% Leading Asset manager
Spartan Derivatives 80 2% Need to check with BSC - all volumes on Burger
Helmet Helmet 63 1% Leading insurance provider
Alpaca Yield farming 35 1% Leading yield farming protocol / innovator
Summary 3793 100%

At this stage, we suggest having a single well-diversified (in terms of DeFi segments coverage) index

At a later stage, BSC Innovation (small caps) index can be considered

EBSCI composition

Based on MCap and ADTV on CEXes, ETH DEXes, and current ADTV on BSC DEXes, PowerPool management board selected 6 projects out of 17 considered.

Project Sector M.Cap, $mn Weight in M.Cap based index Comments
Alpha finance Yield farming 498 38% YFI ecosystem // proven volumes on CEX (Binance) // trading on CAKE
Linear Derivatives / Synths 322 25% Large MCap // proven volumes on top CEXes // trading on CAKE
Injective L2 DEX / Derivatives 199 15% Large MCap // proven volumes on top CEXes // trading on CAKE
RAMP Multi-chain aggregator 126 9% Average MCap // proven volumes on UNI // already large volumes on CAKE
DEGO DeFi+NFT 87 7% Average MCap // proven volumes on CEX (Binance) // trading on CAKE
UNIFI Multi-chain DEX 71 6% Average MCap // proven volumes on top CEXes // trading on CAKE
Summary 1304 100%

*As many projects are being launched on BSC as well as many projects are switching from ETH to BSC, in case this proposal passes, we will need another 48 hours to update the initial weights of the indexes components

8 Likes

100% FOR this.

Amazing stats btw.

2 Likes

BSC is in desperate need of decentralized index provider. Hope CVP community will like this idea :rocket:

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This will open up a ton of opportunities! :rocket:

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great idea! it will increase recognition well!

This is great, very much for this

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Hi Everyone,

I am new here and got a small bag under $ASSY. And have been active in the BSC ecosystem the last 3 months and recently using Polygon because of Aavegotchi.

Low gas fee and lead to more users under the BSC ecosystem is understandable why we want to have a setup over there. And I am 100% in for it and will sure be investing some to earn CVP on BSC side. :slight_smile:

What I also want to bring up is that having BNB hitting $420 today. Sometimes taking out a few hundreds dollars loan on Cream Finance can cost over $6 gas fee. I know it is tiny compare to what it is on Ethereum Mainnet.

What about Polygon? With AAVE just opened, a lot of Game platforms / NFT tokens are also launching on Polygon. Even Indexed Finance already have few of their tokens available on Quickswap already
And the gas fee is 50 times cheaper than BSC!!

I fully understood a lot of big protocols are already started on BSC which will bring a lot of people into BSC ecosystem. But please consider future plan of Polygon / Matic!! I’ve been wanting to get on the YLA wagon but haven’t happen yet due to the high gas situation with just moving fund from BSC to ETH…

As a new user with Defi trying out different things on different chains. Just want to give my 2 cents as a newbie perspective. Also understand Polygon is a layer 2, not like BSC where people still have to go thru Etherum Mainnet to get to Polygon and paying some high gas fee when going through…

2 Likes

Is this truly a bet on the longevity of BSC or an advertisement for PowerPool in a rush to be the first BSC index? Do we have any hard stats on value migrating from ETH to BSC other than “many projects are switching”?

for me it’s not about ETH projects switching to BSC, but actual people using Binance & BSC. It’s one of the biggest in number of ppl and amount of money user bases.

I do believe ETH has a better developer ecosystem and it’s more robust and decentralized, but more and more people use BSC coz it’s fast and easy, you can’t deny it.

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No doubts that that kind of indices can bring tons of value into ecosystems bot in PP and BSC. Great idea

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BSC has proven its ability to service a specific niche in crypto

4 Likes

Love this proposal! One project that I would also add to the index is the CUB Finance (https://cubdefi.com/).

Yeah, BSC is amazing for daily compounding yields since the tx fees are so low compared to ETH. This allows for much higher APYs than on ETH.

I am for this in general, but for insurance, I recommend changing Helmet for Soteria. Soteria is a BSC clone of Nexus Mutual, and a much better proven model and investment. Soteria is essentially a big pile of BNB with insurance functionality, and the WSOTE tokens are stake-able for insurance yield.

2 Likes

Have tried both platform and I 2nd @TJB2K idea on changing from Helmet to Soteria.

I understand this might already getting into the finalize state. just like to bring up this new protocol ellipsis.finance currently sitting at #3 on BSC in TVL refer to Defi Station

Just within a short few weeks TVL ran up to 2.43B. Basically a BSC version of $CRV mainly focus on stable coin farming with a slight modification, a 3 months lock period staking their $EPS with up to 1600% APY. Just think they have very high potential down the road on BSC and farming with stable coins seem to becomes more and more popular.

Any way we can do some proper due diligence on the BSC holdings? We should make sure that there are no rugpull teams on the BSC index list.

the best way is to collaborate with Binance Research, they have to have D&D data on the majority on this projects

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I totally agree here.

1 Like