Proposal 46: Composition Update - BSCDEFI

Abstract

During the time it has taken to negotiate launch conditions for BSCDEFI, events have transpired suggesting that the pool should be re-weighted prior to launch. Alpaca Finance was originally included in the first draft version at a significant weighting, but was excluded from the version approved in Proposal 39 by our market makers Wintermute because it was not listed on Binance. This has now changed. Linear was originally the mirror hedging partner providing synthetic version/inverse. For technical reasons, this will now be Spartan.

Motivation

PowerPool DAO is an active fund manager, and frequently re-weights pools. In this case, it was deemed better from a marketing perspective to re-weight prior to launch.

Specification

The launch composition and weightings are just a starting point, as the DAO will be involved in periodically re-visiting both composition and weightings at regular intervals based on fundamentals tracking and flash-polling of sentiment changes among DAO members. The considerations/filters applied in defining the revised composition below are unchanged. Essentially some projects would be lowered to enable Alpaca to enter at 5% (they have over $1.0 billion TVL, are shield mining on Nexus Mutual, and are very active in co-promotions with Binance); and Spartan to enter at 3%, reflecting their role in supporting BSDEFI with a synthetics platform.

Conclusion

The Executive Group is unanimous in recommending this fairly routine change be made pre-launch, rather than in the future.

Due to urgency of these changes, proposal is submitted to the governance system immediately.

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