What is BMI?

It’s an index of interest-bearing USD stablecoin exposure, initially made up of yVault tokens from Yearn.


Motivation

We’re dropping a new low-risk product — BMI: BasketDAO Money Market Index. It’s a diversified stablecoin farming index powered by Yearn, aimed at stable farmers and treasuries. We feel it’s a strong product and it complements BDI on the risk spectrum, particularly in this bear market. So we’ll aim to give it the best launch boost we can.

Before we do that though, we need to talk about BASK.

BASK in its current form does not make good incentivisation. Its flaws raise a lot of questions among buyers and low BASK appeal = ineffective incentivisation.

With all of our learnings…


The actual results

All 7 votes failed to reach our initial quorum of 10000 votes or even the reduced quorum of 6700 votes.

Our voting token BASKV — a token set up to track your BASK that may or may not be in your wallet, has failed to consider

  • BASK staked in Onsen, resulting in some of the more active community members unable to vote
  • BASK held by our multisig devfund, resulting in devfund unable to cast its 5600 votes for each proposal

Lessons from BASKV failures have been learned and will be applied to future proposals.

Our thoughts

Over the past few months, we’ve…


Updated on June 15th for revote

Following our successful rebalance #1, rebalance #2 continues with more proposals for the community. Proposals are based on discussions from within the community.

Assuming smooth success this time as well, we will soon begin giving proposal powers to the community, to work towards our vision of a decentralised yield-bearing index.

What’s in this rebalance?

The Snapshot proposal combines the following items:

  • Reduce weight cap from 25% to 20%
  • Add ZRX to BDI as cZRX from Compound
  • Remove MTA from BDI
  • Remove FARM from BDI
  • Move YFI to v2 YFI yVault
  • Move UNI to v2 UNI yVault
  • Move SNX


The results

The community came out in force and all 3 proposals have passed. This means that the following changes will take place:

  • LINK will be added in the form of the crvLINK farm on YEARN at 9.17% yield.
  • CRV will be added in the form of the yveCRV* farm on YEARN at 17.68% yield. After much discussion, the team choose yveCRV here over yvBOOST due to the additional $PICKLE protocol risk in yvBOOST. The yield will still be compounded by BasketDAO.
  • aKNC, aREN and aMKR will be unwrapped back to KNC, REN and MKR

We were glad to see the wide…


The team has been working with our advisors on a transitional plan to realise our “truly decentralised index” vision. The general idea is that with each rebalance, more power is transferred from the team to the community.

Rebalance #1 is the first step of this power transfer where the community will be allowed to make some binary choices regarding tokens and farms. Subsequent rebalances will see the community gaining proposition power, the ability to change tokens, weight factors, farms, and eventually gaining full control over BDI.

BDI methodology is outlined here.

There will be many links in this article, follow…


Mandate

BDI’s mandate will be to provide diversified exposure to DeFi blue chips, while charging no fees and farming yield safely. It is aimed at the long term passive investor as a safe set-and-forget investment.

Inclusion criteria

The following inclusion criteria ensure that BDI follows its mandate, by controlling the tokens that may be included and the risk appetite of the farming.

Constituent inclusion criteria

  • The token is available on the Ethereum blockchain.
  • The protocol is considered to be building a useful product for the future of DeFi.
  • The protocol has significant usage.
  • The protocol has been launched at least 90 days beforehand.
  • There must be…

In the past 5 weeks, we have leveraged what we can from the market that existed before us to bootstrap liquidity for BDPI:

These are the numbers are post a heavy reward reduction, confirming our belief that BDPI is becoming self-sustaining. It’s time for BDPI to take on its own evolution.

New Symbol: BDI
New Name: BasketDAO DeFi Index

The rebrand further distils BDI’s mandate:


Where does the yield come from?

BDPI holds yield bearing tokens, in the form of cTokens from Compound, aTokens from Aave and xSushi.

These tokens accrue yield in a variety of ways.

  • cTokens appreciate in value and are able to claim COMP rewards
  • aTokens are streamed more aTokens
  • xSushi appreciates in value

We refer to the claimable COMP rewards and streamed aToken as harvestable yield.

What is the yield distribution

The initial plan was to distribute harvestable yield as detailed below:

However, the BasketDAO Treasury has kindly agreed to sponsor BASK holders (😘) and will be donating its portion of yield for the foreseeable future. …


Our vision of BasketDAO consists of an ecosystem of financial products centered around our decentralized indices. For example, as an investor you might want to buy insurance on your BDPI during a period of high volatility, or you might want to borrow against your BDPI position. The S&P500 has its own ecosystem within TradFi —

BasketDAO

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