Synthetix:  sDEFI Paired Token Basket

Synthetix: sDEFI Paired Token Basket

Synthetix is a natural partner to mirror PPSDEFI, since indeed we plan to copy the initial composition of their sDEFI synthetic token, and later collaborate with them on re-weightings.

Proposal to Synthetix:

PowerPool is an asset manager than creates and actively manages thematic diversified pools of primarily DeFi tokens on multiple chains and layers, permitting average investors to achieve broad diversification, WITH rewards harvesting, at minimal gas costs, and institutions to hold broadly diversified pools at minimum cost and complexity related to on-going reporting, yield harvesting and meta-governance.

PowerPool seeks to partner with synthetics/derivative partners on each chain and layer to provide hedging options for pool tokens, enabling pooled token holders to choose to hedge while still harvesting rewards.

This Ethereum DeFi proposal is for Synthetix and PowerPool to jointly launch and promote PPSDEFI/sDEFI as mirrored tokens with identical compositions and weightings, and to jointly maintain identical composition and weightings going forward. PowerPool will be staking the SNX contained in both long PPSDEFI and hedged PPHSDEFI, and use its staked SNX position to mint 'inverse' sDEFI for the hedged neutral pool, thus correcting a tendency of sDEFI to be skewed long. Improved composability of the mirrored PPSDEFI/sDEFI pair should dramatically increase liquidity of both the yield-bearing PPDEFI and synthetic sDEFI tokens.

If Synthetix wishes to expand cooperation further, one option would be for PowerPool to launch a yield-bearing (not synthetic) pool designed to move opposite the Synthetix debt pool, allowing Synthetix SNX stakers to partially hedge their exposure to the debt pool, WITH rewards. Depending on the exact implementation, this product could also appeal to some institutions and retail investors.

SNXHPOOL-SNX Debt Pool Hedge
SNXHPOOL-SNX Debt Pool Hedge

Another option to expand cooperation would be to collaborate on a yield-bearing mirror for the proposed sCEFI, 30.7% of which is BNB...


Proposal to Synthetix DAO