The Defi Leaderboard Index

Research
#1

Hallo Guys,

i thought i will stop contribution to this lovely project cause there are so many more intelligent people with awesome ideas and some of them might get payed quite well in future. Maybe we can tip some people that invest quite some time and find ideas that get implemented (like xCVP cough)…but lets forget about that and come to my idea. I post this in the research forum cause i have no idea how this thing should work and how we can get the most out of it but now…i present you…

THE DEFI LEADERBOARD INDEX (this name is not good)
People like rankings, people love to invest and some people want to be more risky than others. What is, if we create an index token which represents the top 50 DEFI Tokens (100 would be too much imo), like the S&P500. But hear me out, and that is what is special about that:

We create a Token which is called Defi Top 10 (Name sucks). As example i use the coingecko DEFI List, doesnt matter if its wrong right now:

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We have an index with WBTC / ETH / LINK / UNI / AAVE / SNX / GRT / MAKER / SUSHI / COMP which represents the top 10.

Then we have an index which is called Defi 11-20 (name sucks) which has:

YFI / oX / UMA / REN / RUNE / LRC etc.

Then we have token Defi 21-30 etc. etc.

So we have 5 index tokens that represent the top 50 Defi Tokens and on TOP of that we create an INDEX which cointains those 5 Indices. So you can REALLY have exposure to the top 50 DEFI coins if you wish to. And those 5 index tokens use DAMM so you gain with the gainers and dont loose to much with the loosers.

The Marketing part
Now you say, ok, do i want such an big index? Doesnt sound THAT interesting but im not done. This index only makes sense if you add or delist tokens in those lists. But its not working that you list and delist them 5 times a day. No, lets make an event out of that. Maybe one a week, or one a month:

THE REBASE
Once a week or a month all tokens will update, they will list or delist the underlying tokens. Some tokens will get promoted from the defi 11-20 to the defi top 10, some tokens will stay the same, some will get demoted and some will fall out of the top 50 completely. This is pure marketing with statistics, twitter announcements, with eyes and powerpool. And if that system is working, you can imagine how much fees we would generate. If many invest in this we could be a really awesome liquidity provider with our 1inch integration awell.

And for the user this is quite interesting aswell. If you dont want too much risk, you invest in the defi top 10, and if you want more risk you invest in the defi 11-20, etc.

This system will bring huge TVL into the system, should be a big marketing boost cause we can create a real event everyone in CT is looking at.

And most important, noone else has implemented something like this, we would be the first. And on top of that you have the first indext token existing out of index tokens and you have the possibility to get exposure to the top 50 Defi coins, the biggest index in this space.

Now guys, i need you feedback, cause you are smarter than me and can see the up- and downsides. And i have to run anyway, cause my RL job is calling. I personally think this idea is penomenal, but otherwise i wouldnt have suggested it. This has a benefit for the user and for the protocol and should be a really big marketing machine. Go big or go home :slight_smile:

Have a good day my lovely people.

3 Likes
#2

Love the idea. The notion of providing exposure to different “tranches” of the market spurred another idea in my mind that I think would be really transformative for PP and differentiate it from competition:

Create Your Own DAMM Index

Today, PP investors can utilize ETH or other ERC-20 tokens to mint pre-set indexes. I believe the next evolution will be for PP to provide the opportunity to create one’s own index from a pre-approved whitelist of tokens and have that individual portfolio rebalance utilizing DAMM based on approved metrics (MCap, inverse, other TBD).

Many smaller defi investors have interest in several protocols but do not have the wherewithal to build positions in each. For larger investors, there is still a major benefit of auto-rebalancing.

This would bring a lot of value to the platform and accrue value through entry and exit fees (maybe they should be higher for these individualized portfolios.

CVP holders can vote to approve tokens for the whitelist.

@powerpoolAdmin Is this technically feasible? Are the gas implications prohibitive?

Again, i like the above proposal but wanted to throw this one out there for consideration as well. All thoughts welcome and encouraged.

2 Likes
#3

I don’t think this could have been said any better myself. This is s solid approach for an index to me. Also a nice workaround of the issue of too many tokens in 1 index.

#4

Hi, it is indeed a good idea.
I suppose you are talking about something like the BCI5, BCI10 & BCI25 indices --> https://www.bitpanda.com/en/bci-bitpanda-crypto-index

If I get you correctly, it’ll be like ASSY, only more carots (or peaches?) in the basket. I’d think of SASSY: “Super ASSY”

What I’ve experienced with the rebase, or rebalancing as the Bitpanda folks call it, is that it doesn’t quite create a buzz like one could/would expect. I experience it as a relatively formal event which, though announced, has no ‘hype-factor’ attached to it - maybe that’s something that can be facilitated? How? Ideas, anyone?

What comes to my mind is a certain rebase raffle I read about and participated in once on publish0x. The name evades me atm.

I also like the extended development of a ‘boulder assembly’ kind of - individually selected or otherwise - bucket of assets as JaLa describes it. Although the possible combinations could be preset by management (instead of having uniV3 like unique assembled LP NFTs), which I believe would still offer sufficient choice of putting together a favorite choice of tokens for such an index. Curated if you will.

What do you think

#5

Not sure who has read the Wiki, but this is essentially what we are doing. For example, the PPSDEFI composition for Ethereum-based DeFi comes from Synthetix, but is similar to the above shortlists. We are are also doing BSCDEFI, POLYDEFI, SOLDEFI, etc…all WITH auto-harvesting of rewards AND hedging options. We will be creating many high-yielding pools like this, then putting these pool tokens into bigger pools, like ALTL1DEFI etc. Once the Power Universe contains many such thematic pools (including market neutral stablecoin yield pools like YLA, and others), investors will be able to trade within the pool to create their own custom pools, or just go with our flagship PWRPOOL token, a pool of pools of pools token, and leave it all on auto-pilot.

#6

Yes, am aware of the wiki.
Didn’t realize it’s a fairly old topic here…

Kind regards