BSC Indexes (BSCI & EBSCI): First Decentralized Index on Binance Smart Chain

By OleZba | Crypto Gems | 7 May 2021


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PowerPool Indices

PowerPool is a decentralized protocol for automatically managed token portfolios, and smart indices. The protocol uses capital stored in portfolios/indices for generating additional yield from staking, vaults, and meta-governance. PowerPool is governed by CVP token holders, including protocol upgrades, new indices, portfolio strategies, and usage of meta-governance power.

PowerPool indices and automatically traded portfolios are built on top of Balancer AMM and use the capital for meta-governance and staking (coming soon). Protocol architecture allows launching a broad variety of products including indices/portfolios with complex rebalancing strategies/dynamic weights changing, productive usage of assets/meta-governance, including indices composed of derivative tokens. Currently, the CVP community launched four products: Power Index (PIPT)Yearn Ecosystem Token Index (YETI), ASSY, and YLA. PowerPool have plan to launch two new Indices on BSC.

Why BSC

BSC is faster, cheaper and more scalable than Ethereum chain. This is solution for smaller investors, that gives them access to many DeFi products and earnings. Some of the benefits of Binance Smart Chain include:

  • a rich and growing digital asset ecosystem
  • cheap transaction fees
  • high performance with a network capable of producing a block every 3 seconds
  • cross-chain DeFi mechanisms, that increase DeFi interoperability

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. PowerPool Management Board analyzed 34 BSC ecosystem projects to propose the indices’ composition. They propose launching of two new indices: BSCI (Binance Smart Chain Index) - 8 projects are included and EBSCI (Emerging Binance Smart Chain Index) - 6 projects are included. PowerPool’s ecosystem will benefit from this proposal by an increase in TVL growth, brand awareness, and community expansion.

BSCI and EBSCI

Two new indices is based on PowerIndex v2 Dynamic AMM tech:

  1. BSCI (Binance Smart Chain index) - BSC native projects and blue chips
  2. EBSCI (Emerging Binance Smart Chain index) - emerging projects in BSC ecosystem, some of them were extended their services to Binance from Ethereum

Indexes implementation goals:

  1. 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.
  2. 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 PowerPool propose M.Cap adjusted weighting based on Dynamic AMM.

BSCI composition

Based on M.Cap and ADTV, the PowerPool Management board selected 8 projects: Pancake, Venus, TrustWallet, Bakery, Autofarm, Spartan, Helmet, Alpaca. At this stage, they suggest having a single well-diversified (in terms of DeFi segments coverage) index.

EBSCI composition

Based on MCap and ADTV on CEXes, ETH DEXes, and current ADTV on BSC DEXes, PowerPool management board selected 6 projects: Alpha finance, Linear, Injective, RAMP, DEGO, UNIFI.

This is great news and we wait for launch! Good luck!

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OleZba
OleZba

Crypto investigator


Crypto Gems
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