We have the DPI and it is excellent as a way to get easy exposure over the long term to defi.
Will polygon or optimism or xdai be the scailing solutions that take off? Who knows, but it would be nice to be able to invest in scaling solutions for eth in general via their tokens. That way we don’t have to pick a winner.
I do not know how one would rebalance it? would a static allocation be enough? There doesn’t seem to be anything in the market that allows you to generally invest in L2s (and polygon). I think there is an opportunity to help things grow here.
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Hello! I’m moving this to general. Please follow the pinned proposal template for proposals. Thank you!
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fwiw, there is a proposal up for discussion in the Index Coop forums right now on this topic: Ethereum Scalability Layers Index (L2 Index)
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No activity for a while. I’m moving to archive. Please reply if you want it reopened
Not on indexcoop to be able to comment there, but I really like the proposed names. I would like to add to them.
Consider that the proposed weighting may bias the returns on the performance of a few names. would recommend to look more broadly and target ~10-15 tokens for the proposed index. I believe the DAO can find this many projects with strong potential that already have planned or working L2 solutions.
Would like to propose equal cap weighting or tiered equal cap weighting instead of market cap weighting. We know the market cap of these projects will be volatile, any rebalances that occur may overweight the coins that recently pumped, causing the fund to potentially eat the regression losses. Equal weighting would tend to harvest gains from coins that had pumped and reset everything that is considered equivalent during periodic rebalancing (downside is it may also boost low performers, this can be managed with rebalancing rules). Also the smallest market cap coins are going to have the most potential alpha (but highest risk). Giving them a few percent allocation each seems appropriate.
A tiered system would put the more established names like LRC and MATIC on equal footing in tier 1 (give them say 10-15% each), with the lower tier spreading out the remainder evenly at 3-5% each depending on how many assets are included.
What does everyone think? Can someone direct me to the guild or channel that is discussing this actively?
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@gregdocter thanks for pointing that out. I totally missed that.
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