Thank you WSB community for the vibrant discussion for our 1st ETP asset allocation!
As posted on various announcements the process for the best UX has been as follows:
- Polling to select the initial 20 tokens
- Discussion on Gov.WSBDApp.com to massage the methodology math and weightings.
- The consolidated feedback is then packaged up into our 1st on-chain vote.*
- Voting will go live as soon as practical and the link will be https://vote.wsbdapp.com/ when it’s live.
*On-chain votes are typically binary i.e. ‘Yes’ or ‘No’ to proceed with this starting methodology and asset allocation.
As a reminder: ALL $WSB tokens, including those which are staked in pools CAN vote:
- The voting 1st takes a snapshot of wallet balances and locks in those balances to gather vote weights
- Once the vote is live, you can buy/sell $WSB as normal - but any newly purchased WSB after the vote/snapshot start, are not able to vote (normal practice).
- The vote will be open for 72 hours once it’s live.
- The basket size of this ETP will be set at 20.
Illiquid Assets: $RARI, $SWAP, $IDEX, $RAZOR
- The feedback received was that most members were happy to keep the 4 tokens which are most illiquid in the current ETP, as well as in favour of keeping low cap projects in the ETP for performance reasons moving forward.
Market Capitalization Weighting:
- Rather than using just market cap for the weighting, a squared market cap will be used to weight the constituents.
Weight Floor and Ceiling:
- Asset constituents are capped to a weight of 15% and a 1% weight floor will be introduced.
- Coverage: Have active tradable markets and been trading for 60 days.
- Liquidity: Have an average daily trading volume that exceeds $50k USD
- Tokenomics: Access to supply and free-float data.
- Token Holder Count: > 500 Addresses
- Particular Exclusions: Stablecoins
- The proposed rebalancing will be every two months starting when the ETP has launched.
Table of Weights (with a 15% ceiling cap and a 1% weight floor based on the squared market cap).
Weights calculated on 3rd June, 2021.
We are very pleased with the community driven results so far. The basket should be a great reflection of exposure to the crypto asset class in general and meanwhile the ETP web page design (will be ETP.WSBDApp.com when live) is looking slick - We can’t wait to get through the vote and move onto building the ETP and it’s sub-domain site!
Apes together strong.
~ WSB DApp team