Macro Overview- Alternative Non-EVM L1 Chains
PowerPool needs to launch an even-broader pool-of-pools-of-pools thematic, composable L0/L1 basket that will include $EVML1 as a constituent, buit also tokens from other non-EVM compatible chains, even if auto-harvesting intrinsic yield is not immediately possible. This broad basket token could be a large part of the flagship $PWRPOOL token that communicate to sophisticated investors and provide ways to take systematic positions on scenario-driven investment theses.
Bitcoin continues to fall from 72% at the end of 2020 falling towards under 40% of aggregate crypto value, all the while its continued energy-intensive operation (together with ETC & other POW chains) threaten to roast the planet. Meanwhile, for at least the next year, Ethereum will struggle to shift to POS and, above all, to scale. It is possible than despite DeFi protocols moving to L2 roll-ups and sidechains, surges in transactions traffic and arbitrage/trading bot spamming will keep Ethereum ecosystem gas fees too high for the average responsible investor to achieve a broadly-diversifed, thematically-balanced, rewards-rich and hedge-able portfolio on their own. Indeed, the PowerPool value proposition posits that responsible investing for the average investor in the future Ethereum ecosystem gas fee environment is best managed by pooling their investments together with thousands of others and automating harvesting of intrinsic yield while expanding opportunities to earn extrinsic yield via staking/lending and reducing volatility via hedging.
It is likely that exponential continuing transactions demand will be such that Ethereum will never be able to cope with automated bot-based high-speed arbitrage trading and, as a consequence, large-scale, high-speed, high-value DeFi liquidity could increasingly seek other L1 homes. As a consequence of Ethereum scaling/gas fee surge pricing issues, crypto market TVL is already flowing not only towards L2/Sidechains (captured by $L2DEFI) but also EVM-compatible L1 chains like Binance Smart Chain (captured by $BSCDEFI) and many other L1 ‘pretenders’ (see table below) but also by non-EVM multi-chain L0/L1 s like Solana, Cosmos Network, Thorchain).
One possible future scenario is that crypto financial flows will segregate/segment based on both transactions size and urgency of finality. In TradFi, public-facing retail, higher value inter-bank wholesale and high value, high-speed institutional trading with 'dark pools' are all largely separate. A similar segregation could also happen in crypto, where public-facing, small payments-oriented (regulated) mobile retail finance runs on small payments chains like {??? and ???} while higher-value, less time-sensitive transactions (like zapping into PowerPool) will still run on ETH2/3, but high-speed, high-value arbitrage and dark pool trading bots will run on chains like {??? and ???}. It’s likely that the near-term future of finance will be cross-chain, as different protocols will focus their efforts on certain aspects, such as speed, security, privacy or decentralisation, creating a competitive market and giving users the option to choose. There probably won’t be just one winner. Fee-earning L1 activity will be distributed (unevenly) across many L1 chains, depending on the architecture of each chain, ability of its community to execute, and the distribution of crypto use cases.
Positing future scenarios like this, deducing the corallorary investment theses, then expressing the collective sentiment via re-composing and re-weighting individual tokens across the PowerUniverse family of pools is the role of the DAO collectively, and hopefully investment managers who enjoy this will gravitate towards the PowerPool DAO.
Alternative L1 Token Pool (ALTL1POOL)
PowerPool offers DAO-guided active management of investment pools composed of continuously re-weighted curated shortlists. Given the uncertainties, it is proposed to launch the PowerPool ALTL1 pool with initial equal weights across a number of 'alternative' L1s excluding BTC and Ethereum. There is an option to also launch a Cosmos Network Hub ecosystem pool, and include a percentage weighting of the proposed CHNPOOL token within the ALTL1 pool. Given that a separate Cosmos Network Hub pool is also proposed, rather than include Cosmos/ATOM in this pool, the DAO could consider simply excluding Cosmos from this ALTL1 shortlist on the grounds that our investors can decide for themselves what weight to give Cosmos among other alternative Layer 1s by managing their personal allocation between ALTL1POOL and CNHPOOL tokens. Ethereum scaling solutions like Polygon/MATIC, etc. and various bridging chains like Thorchain/RUNE, etc. either have, or soon will have, dedicated investment pool products L2ETHPOOL and BRIDGPOOL.
Roughly every 6 months, the DAO will complete a process of flash polling xCVP stakers to determine if, and how, the composition and weights in the ALTL1 pool should be changed.
L1 Bridges define the flow of liquidity from Ethereum
Currently Blacklisted L1s
The L1 tokens below are currently blacklisted pending DAO guidance to move them to the whitelist. Many are relatively obsolete early BTC forks, some were funded via ICOs and/or otherwise have tokenomics skewed away from growing/sustaining their communities, and other perceived shortcomings undermining their long-term prospects. Any DAO member (qualified xCVP>1000 staker) can propose to move a token from the blacklist to the red/white lists assuming the DAO vote reaches the quorum and the threshold vote level. The token will enter the whitelist with zero weighting and become part of the periodic dynamic re-weighting flash polling.
Token | Blacklist | Comments | CoinGecko |
---|---|---|---|
BCH | Yes | ||
BTG | |||
BSV | |||
BCD | |||
LTC | |||
ETC | |||
DOGE | Yes | Majority of tokens held in one wallet; no utility; SOV 'slow Ponzi' | |
XRP | |||
EOS | |||
Tron/TRX | |||
BSV | |||
Tezos/XTZ | |||
DASH | |||
XMR | |||
Verge/XVG |
L1/Token | EVM? | Consensus | TPS / AVG TX FEE | Validators | Community | TVL | Property 1 | Property |
---|---|---|---|---|---|---|---|---|
Solana/SOL | sealevel (Rust) | Proof of History | 50.000 / $0,00025 | 943 | TG:87k TW:450k DIS: https://discordapp.com/invite/pquxPsq | |||
Elrond/EGLD | WASM | Secure Proof of Stake | 15.000 / $0,001 | 3.200 | TG:44k TW:311k DIS: | |||
Cardano/ADA | K (EVM) | Proof of Stake | 250 TPS | 2075 | TG:62k TW:815k DIS: | DeFI and yield opportunities not yet mature? | ||
Polkadot/DOT | Web Assembly, Substrate | Nominated Proof of Stake | 1.000-3.000 / $0,4 | TG: TW:562k DIS: https://discord.gg/wGUDt2p | ||||
Kusama/KSM | Web Assembly, Substrate | Nominated Proof of Stake | 1.000-3.000 / $0,4 | 297 | TG: TW:110k DIS: https://discord.gg/9AWjTf8wSk | |||
Dock/DOCK | yes | Polkadot | ||||||
Algorand/ALGO | Reach, Python, Clarity | Pure Proof of Stake | 1000 / $0,001 | TG:18k TW:123k DIS: https://discord.gg/YgPTCVk | ||||
Nervos/CKB | ||||||||
Avalanche/AVAX | Yes, (Solidity, Viper) | Avalanche Proof of Stake | 4.500 / $0,001 | 1043 | TG:27k TW:227k DIS:https://chat.avax.network/ | $1,8B (1,5B in 1 Week!!(Benqi) https://defillama.com/chain/Avalanche https://github.com/ava-labs | ||
Harmony/ONE | ||||||||
KAVA/KAVA | TG: TW:130k DIS: https://discord.com/invite/kQzh3Uv | |||||||
Terra/LUNA | Web Assembly / EVM Cosmos SDK | Tendermint Proof of Stake | 10.000 / 0,1 - 1% | 130 | TG: TW:114k DIS: https://discord.gg/NsXrgTH7 | |||
Near/NEAR | WASM, Aurora (EVM) | NightShade Proof of Stake | 100.000 / $0,0002 | 59 | Interested in DeFi pool | |||
Fantom/FTM | EVM (Solidity, Viper) | Proof of Stake | 10.000 / 0,0001 | 52 | TG:17k TW:110k DIS:http://chat.fantom.network/ | 450m | ||
Celo/CELO | ||||||||
NEO/NEO | ||||||||
Theta/THETA | ||||||||
IOTA/MIOTA | 1500 TPS | |||||||
Zilliqa/ZIL | ||||||||
OKChain/OKB | ||||||||
NEM | 2 TPS | |||||||
Qtum | 70 TPS | |||||||
Wanchain/WAN | 75m BRIDGPOOL | |||||||
BINANCE CHAIN/BNB | Yes, Solidity, Viper | Proof of Staked Authority | 100 / $0,15 | 21 | TG:166k TW:4,8m DIS: | |||
Cosmos / ATOM | Web Assembly / EVM Cosmos SDK | Tendermint Proof of Stake | Zones, 10.000 TPS | TG: 15k TW:176k DIS: | ||||
Hasgraph / HBAR | 10.000 / $0,01 | 125 | ||||||
Constellation / DAG | ||||||||
WAVES | 100 TPS | |||||||
POLYGON / MATIC | TG:56k TW:611k DIS:https://discord.gg/polygon | $4,5B | ||||||
Huobi Eco Chain / HT | EVM, (Solidity, Viper) | Proof of Stake Authority | 500 / $0,001 | 21 | ||||
Vechain / VET | ||||||||
E-RADIX / EXRD | ||||||||
VSystems / VSYS | ||||||||
Dusk / DUSK | ||||||||
Flow / FLOW
| ||||||||
Mina / MINA
| ||||||||
IOTEX
| ||||||||
Stacks / STX
| ||||||||
Tokenomics: Token Supply & Distribution
Minting & Vesting, Inflation and VC/Insider supply overhang
If a token distribution is too centralized or too skewed towards a certain set of people, this can have an incredibly detrimental effect on the project’s ability to attract a lasting community. As a related factor to this, tokens are also commonly criticized for their release schedules - we’ve seen plenty of tokens bleed out in value because of aggressive liquidity mining campaigns that essentially create a perpetual “farm and dump” mechanism where passive holders eat heavy losses.
Asset | M Cap | FDMCap | Volume 24h | Circ. Supply | % | Total Supply |
---|---|---|---|---|---|---|
BSC/BNB | 75.360 | 83.184 | 1960 | 154.533.651 | 90,6% | 170.533.651 |
Solana/SOL | 25.450 | 42.866 | 1930 | 290.803.002 | 59,51 | 488.630.611 |
Cosmos/ATOM | 5.570 | - | 487 | 278.241.240 | - | Not Capped |
Avalanche/AVAX | 8.190 | 34.175 | 1225 | 174.370.222 | 46,2% | 377.752.194 |
Terra/LUNA | 12.460 | 30.710 | 1140 | 403.297.025 | 40,6% | 993.960.125 |
Fantom/FTM | ||||||
Polkadot/DOT | 26.700 | 27.180 | 1060 | 1.024.643.604 | 92,67% | 1.105.592.738 |
Kusama/KSM | 2.760 | 3.070 | 275 | 8.980.098 | 89,8% | 10.000.000 |
Cardano/ADA | 91.320 | 128.061 | 6700 | 32.066.390.668 | 71,15% | 45.000.000.000 |
Elrond/EGLD | 2.755 | 2860 | 69 | 19.648.859 | 96,3% | 20.397.843 |
Algorand/ALGO | 3.625 | 10.507 | 155 | 3.451.806.018 | 34,51% | 10.000.000.000 |
Polygon/MATIC | 9.560 | 14.770 | 876 | 6.477.576.924 | 64,77% | 10.000.000.000 |
Avalanche, Binance, Terra, Polkadot & Kusama have deflationary mechanisms | ||||||
MINA | ||||||
FLOW |
L1/Token | Weights | Tags | Column 1 |
---|---|---|---|
Solana/SOL | 1 | ||
Polkadot/DOT | 2 | ||
Kusama/KSM | 3 | ||
Cardano/ADA | 3 | ||
Avalanche/AVAX | 4 | ||
Elrond/EGLD | 5 | ||
Algorand/ALGO | 6 | ||
BSC/BNB | |||
Terra/LUNA | |||
NEAR/NEAR | |||
Harmony/ONE | |||
Fantom/FTM | |||
Cosmos/ATOM | |||
Kusama/KSM |
Computing L1 Platforms
Dfinity
Hedera/HBAR EVM/Solidity Hashgraph High speed
Cartesi/CTSI
The OAN/AION
Internet Computer/ICP
Hiro (formerly Blockstack PBC)?/STX
Secret