BSCDEFI Product Launch by PowerPool
PowerPool launches BSCDEFI — providing yield-bearing, diversified exposure to Binance Smart Chain DeFi protocols.
BSCDEFI is a diversified basket of leading BSC DeFi protocol tokens that captures both their price action and, crucially, their staking rewards. It contains yield-bearing governance tokens for most major BSC DeFi protocols — CAKE, XVS, MDX, EPS, etc.
BSCDEFI enables to effortlessly capture the BSC DeFi ecosystem growth and staking rewards using a single asset.
BSCDEFI composition (the tokens included and their weights/shares) will be maintained relevant in the future through active management by the PowerPool DAO. The changes to the index should be based on the evolution of fundamental metrics of included projects such as TVL, MktCap, user base, fees collected, liquidity, etc.
🔹BSCDEFI Yield opportunities
Besides capturing price appreciation and auto-harvested yield* for selected projects in the BSC ecosystem, BSCDEFI holders can generate additional yield on their capital by participating in CAKE liquidity mining in the BSCDEFI/BNB PancakeSwap pool:
- For first 48 hrs of the program, 900 CAKE/day will be allocated as pool rewards
- After that, the reward will be 450 CAKE/day
*Currently, security audits for staking strategies are in progress. Once audits are completed, staking of CAKE and other tokens will be enabled automatically. Investors in BSCDEFI will not need to do anything…ever!
🔹BSCDEFI Roadmap
BSCDEFI functions not present at launch will be added soon:
- Staking assets in third-party contracts with auto-compounding: Staking strategies for BSCDEFI using underlying tokens in the basket to farm yield for token holders. Status: ready and awaiting security audits. ETA: several weeks
- BSCDEFI rebalancing mechanism via “swaps window”: At initial launch, BSCDEFI swaps are disabled to avoid IL risks for token holders. However, periodically whenever the DAO decides the basket composition needs to be updated (based on evaluation of fundamental metrics for the underlying protocols), the DAO will enable swaps with dynamic AMM weights to shift towards the desired composition by means of arbitrage deals. ETA: 1 month
- Synthetic BSCDEFI inverse token: There will be a synthetic version of BSCDEFI with an inverse token that will allow holders to fully or partially hedge via offsetting positions involving both [BSCDEFI + BSCDEFI synth short], all the while still harvesting all future staking yield. Launch of the synthetic version depends on third-party protocols. ETA: ~2 months
- Listing BSCDEFI on BSC Lending sites: will be pursued once feasible given TVL, trading volumes, and liquidity metrics.
About PowerPool
PowerPool allows token holders to lend, pool, borrow, and gain income from governance tokens, while accumulating governance power in protocols based on the Ethereum network. PowerPool’s mission is to expand the utility of governance tokens and improve decision making in DeFi.
📰 INFO
https://medium.com/powerpool/bscdefi-product-launch-and-team-statement-f590e2e1df80
