$BSCDEFI - Tracking

$BSCDEFI - Tracking

$BSCDEFI - Tracking Composition & Weights
$BSCDEFI - Tracking Composition & Weights
$BSCDEFI - Constituent Token Yield Strategies
$BSCDEFI - Constituent Token Yield Strategies
$BSCDEFI - Launch: Partners & Planning
$BSCDEFI - Launch: Partners & Planning

Binance Smart Chain (BSC) DeFi Macro Overview:

BSC is a clone of Ethereum running in a more centralised, modified POS (not POW) concensus arrangement with only 21 validators, permitting much higher speeds and lower fees than Ethereum. The combined effects of ETH'1.5' with L2s, sidechains (xDAI, Polygon) and mempool gas wars, plus the recent significant flow of transactions towards BSC may or may not collectively act to keep Ethereum L1 workload/gas fees reasonable. EIP1559 will not change this, nor arguably will the launch of ETH2 in a year or so. Ethereum gas fees will continue to rise and fall, surging at times of market volatility and DeFi liquidity will flow back and forth between Ethereum itself, EVM-compatible Binance Smart Chain (BSC), Ethereum sidechains like Polygon & xDAI, other Ethereum L2 rollups and across ‘bridges’ to alt-chains like Solana, Avalanche, Fantom, Cosmos Network Hub and Polkadot/Alcala.

Rewards offered for DeFi liquidity on BSC will have to be much higher to attract liquidity, and fees should be much lower. With some centralisation comes much better BSC marketing in gas fee-sensitive markets in Asia and the use of the Binance BNB token to pay fees, making BSC effectively a (slightly) decentralised, distributed architecture extension to the Binance empire, with international fiat on/off-ramps. The forgoing suggests that BSC DeFi could attract and sustain significant TVL/fees relative to the rate of rewards tokens issued. Recently, BSC has struggled with performance (some say the nodes will not scale) and security issues, as a plethora of hacks have exploited less-competent BSC cut-paste-fork initiatives.

It is possible that Ethereum gas prices will never really be low enough for retail investors, and liquidity will continue to flow back and forth across chains and layers like the tides. Launching a PowerPool BSC DeFi pooled vehicle to give average retail investors gas-efficient, broadly-diversified exposure to BSC DeFi with rewards is proposed. but experience shows that unilaterally launching a long-only token, with no complimentary hedging/arbitrage options is a bad idea. Once effective shorting vehicles like Beta Finance and perhaps Sparta are available on BSC, PowerPool will also have the option to launch an additional neutral high-yield BSC product farming the (insane) yields being offered by BSC cut-paste-forks to attract liquidity to BSC DeFi while Ethereum gas prices are relatively high. The objective would be to achieve at least one CEX listing (Binance) for both the long BSCDEFI pool token, and the associated derivatives options.

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