2021-0723 Newsletter 12
Bankless DAO Weekly Rollup 12, July 23
Dear Bankless Nation,
With the collective force of our community we can move mountains markets!
This week we saw the successful and smooth launch of the BED Index, soon to be one of the most widely used crypto assets in the world! The BED Index brings us one step closer in our mission to help the world go bankless. This is a really exciting endeavor, which we cover in more detail below. But first, we discuss this week’s NFT showcase, some community highlights, and a few major project updates, all of which is followed up by a summary of ongoing proposals. Let’s dig in.
Authors: Bankless DAO Writers Guild (siddhearta, Frank America, Ap0ll0517, nonsensetwice)
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This is the official newsletter of the Bankless DAO. If you were a Premium Member of the Bankless Newsletter as of May 1st 2021 you have been subscribed to this newsletter at launch.
Img Link: https://bankless.cc/UMA
BanklessDAO Weekly NFT Showcase 🔥
🏦 Auction Type: 48 hour auction
💰 Price: Starting bid 1 ETH
#1: The Prospector
This one of a kind NFT and physical piece is a guaranteed 1 of 1 and is accompanied by the physical statue that will be mailed to the collector anywhere in the world. Shipping and postage is included in the sale price.
“I created this piece as a visualization of Proof of Work. I think of a future where Ethereum is using Proof of Stake and in that future only the crypto hipsters will ironically use POW. And just as if it was a vinyl record, they will go on and on about the merits of this “superior algorithm.” But in those days the only POW miner on Ethereum will be the lonely “Prospector” living out eternity as an NFT.”
Community Highlights
🛌 BED Index: The Bankless BED Index is now live with over $1.2 million minted on TokenSets and over $1.3 million in TVL on the BED/ETH Pool on Uniswap V3 pool! Tell your friends and family, its time to go Bankless!
👚 MetaFactory Merch: The next BanklessDAO x MetaFactory merch drop is scheduled for Wedneday, July 28. The Ultrasound Summer Set includes a ETH ecosystem t-shirt, shorts, and a 1,000 piece puzzle of the Bankless Nation. There might even be a 1,000 BANK bounty for the first person to complete the puzzle! 🧩
What’s New
🎙 Tuesday Talks with Nftfy: Join us on Tuesday, July 27 at 12pm CDT in the Members-Only stage for a Crypto Sapiens event hosted by Humpty Calderon! We will be joined by Vinicius at Nftfy to discuss fractionalization of NFTs and NFT marketplaces.
🤖 Meet DEGEN: DEGEN is the friendly, helpful and diligent Bankless Discord bot. Its programmed goal in its virtual life is to make our life easier. Try it out! In any of our Discord channels type DEGEN to say hi! You can also try: /faqs, /guest-pass, /notion guild:[guild name]
🖼 Values, Layers, Communities: 2,809 Free Paintings in Context: Join us for the first BanklessDAO sponsored art show on August 3, 21:00 UTC. Check out the crypto culture and art exhibition in the Level 0 Discord channel on the day of the event.
🏝 BanklessDAO Gallery on Cryptovoxels: @Crypto Bushi has purchased a Cryptovoxels plot at 2 DAO Field on Satoshi Island to promote crypto culture and the Bankless mission. Take a virtual tour of the gallery and check out the Weekly NFT Showcase, the Perchy Gallery on the second floor, and a collection of pieces by Crypto Bushi on the third floor.
🛌 Get in BED with the BanklessDAO!
*This article does not contain financial advice, only educational information and product related data on how the $BED Index Token works.
The new Bankless BED Index went live Thursday, July 22nd. If you’re unfamiliar, BED is an equal weight index of Bitcoin ($BTC), Ethereum ($ETH), and DeFi Pulse Index ($DPI). $BED is managed by the Index Coop and rebalances the first Friday of every month. The goal of the index is to give people an easy way to get a balanced exposure to the main themes in crypto: Bitcoin, Ethereum, and DeFi. Better yet, the BED index self-manages so it’s a great alternative for those that don't want to go through the hassle of constantly rebalancing their portfolio.
Buy $BED, “Set it and forget it”, and sleep well at night.
Index tokens hold a group of assets and provide investors exposure to them through one financial instrument. A TradFi example of Index tokens exists with ETFs. The $BED Index Token does exactly that for crypto assets.
Why $BED?
Currently, most people interested in cryptocurrency recognize Bitcoin as a store of value. Maybe they don’t understand cryptography, but they know it’s safe. That’s partially why it has a market cap of over $600 Billion. Bitcoin is not going anywhere. So it makes sense that a third of the money under your $BED mattress be Bitcoin. ✔️
Next, many more have come to recognize Ethereum as programmable money that forms the base layer of decentralized finance. Ethereum’s market cap is currently over $235 Billion. Most DeFi tools are built on it. So, another third of the pie goes to Ethereum. ✔️
Lastly, people that appreciate the potential, however risky, of these first two assets often want more exposure to the top blue-chip tokens in decentralized finance (DeFi). Many new investors are overwhelmed by the number of tokens available in the DeFi sector and therefore miss opportunities to invest in the top protocols.
Image credit: Lemonade Alpha
The DeFi Pulse Index ($DPI) contains 14 different crypto assets, nearly 70% of which is a weighted mixture of Uniswap (22.99%), AAVE (20.51%), Maker DAO (12.99%), and Compound Finance (12.54%). These are the assets that have pioneered and continue to pave the road of DeFi. The next three assets by weight class are Synthetix (9.38%), Sushiswap (7.71%) and Yearn Finance (6.54%). These could be considered the second wave for DeFi. Combined, this is over 90% of the pie. The last portion of the DPI includes a wake of emerging DeFi instruments (REN, LRC, KNC, BAL, CREAM, FARM, & MTA). A third of the $BED Index token invests in DPI to capture these high-quality crypto assets disrupting the world of traditional finance. ✔️
BED Rebalancing
When you buy $BED, you have a fully collateralized investment divided in thirds across all of these sectors, and the maintenance done for you. The $BED Index token regularly rebalances to maintain an equal distribution of Bitcoin, Ethereum and DeFi. That’s 33.33% each. When any one of the three assets becomes overweight, the extra weight is rebalanced across the other two assets on the first Friday day of every month.
Within the DPI portion of $BED, any asset of the 14 tokens exceeding 25% weight is chopped down and redistributed. This valve is designed for the same purpose, to reduce any part of the DeFi sector that is too heavy.
It's Bedtime!
By investing in this Bankless $BED Index Token, you not only invest in Bitcoin and Ethereum, but you gain risk-averse exposure to DeFi. This is the no-brainer investment vehicle for you to share with anybody who understands the volatility of this emerging market, but wants to gain exposure to the emerging crypto economy.
Buying $BED provides risk-optimized exposure to what is possibly the fastest growing economic space since the Internet. But as we learned during the dot com boom, if you just bought one dot com company it could go bust. Instead, the smart money says spread yourself out across the most reliable and risk-averse elements within a burgeoning and innovative industry.
Awesome! How can I get into BED?
You have a few options to acquire BED.
- You can use the TokenSets interface to issue BED with wBTC, wETH, DPI
- You can use the TokenSets interface to purchase BED with BTC, ETH, USDT, USDC, or DAI
- You can use Uniswap V3 to trade and exchange ERC-20 tokens for BED if there is sufficient liquidity
Proposals in Discussion
Funding Notion's Ongoing Subscription: Notion is the main tool that the DAO has to store and organize information regarding the organization. The current subscription is being paid by the Defipedia earmarked account for the DAO. This proposal would reimburse Defipedia for last month's subscription costs.
Action Items
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