Avalanche Social Index

The self-managed portfolio that tracks the most popular tokens on Avalanche

Motivation

Having so many DeFi products out there begs the question of why some projects are successful and others just fade into oblivion or survive in sameness? We do not have an answer to this question but there are aspects that explain the rises and many falls of DeFi protocols; some are very close in structure, arising from a fork of a common protocol, some are altogether different, some are safer than others but got hacked while other may have several security problems but nobody cares to hack them. It is a strange world, the DeFi jungle.

So how do we measure community strength?

It’s hard. But happily, our friends at Heimdall just made the perfect tool that fits our needs. The Social Index is a co-creation between Kassandra and Heimdall and will be using a stream of social data to feed the on-chain strategy.

How will it work?

Here enters the Kassandra DAO. Kassandra is the protocol that links financial products with the decentralized management of DeFi and with the social data provided by Heimdall. The protocol makes it possible to develop several financial products with different strategies and value propositions. In our current case, it will bring to light our pool of tokens based on the Avalanche Ecosystem.

The Strategy and the Pool

Believe it or not, the strategy is quite simple. We put more money (give more weight) on cryptos of growing popularity. However, and just to be safe, we must at first define a whitelist, because we just can’t randomly choose any of the thousands of tokens out there. Recall that we follow a theme, DeFi in Avalanche, so with this in mind here is our whitelist for the first pool:

But how do I get all this?

Together with the pool there is the index token $AHYPE and it is all very simple. Do you want to invest like a common liquidity pool? Just deposit AVAX or JOE or any of the tokens in the whitelist to mint $AHYPE and get some reward fees, just like a usual pool. If you prefer you can get it in other places such as DeFi swaps or eventually exchanges. The price of $AHYPE is derived from the pool’s TVL:

And why invest socially?

It is an honest and worthy question. Why don’t we use the market cap to set the weights? Simply because the market cap does not reflect the actual engagement and the size of a community. In the long run, the community is what matters. For a proof of concept, it is worth checking out the backtesting section of our prototype product.

Time to beat the market

If being exposed to the most active and dynamical crypto projects gets your attention and you are afraid of missing out on good investment opportunities, the strategy explained in this article and its accompanying financial product solve both of these problems. It is simple, by acquiring the token $AHYPE you will be investing in the hottest crypto projects.

Learn more about Kassandra:

And get to know Heimdall:

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The decentralized autonomous organization that governs tokenized data-driven investment funds

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Kassandra Foundation

The decentralized autonomous organization that governs tokenized data-driven investment funds