To elaborate and improve on the prior post; the basic idea behind this research is this:
PieDao can expand into optimized portfolio feeds (MVPie). These feeds can be selective in market scope and rebalancing periodicity as well as be targeted for risk. On-Chain Smart Mechanisms exist to allow such feeds to be tokenized assets. Governance mechanisms could take on the form of node operators / validators incentivized by issuance of governance for performing necessary calculations or smart contracts that perform the work on cost efficient chains. Price feeds are intended to create composable tokens based on Modern Portfolio Theory. The service of providing risk targeted portfolio tokens will create value and growth for PieDAO token holders.
A few key components:
- Chainlink is the most popular oracle that has a deep maturity and cross chain integration.
- Band is built on cosmos which supports custom side-chains configurations as well as cross chain interop.
- New oracle players like: Nest, Tellor also exist but features are limited.
Practically speaking building a Portfolio Feed Proof of Work DAO on Cosmos allows for simpler integration between Band and Ethereum and well suited to progress to other chains via Cosmos. Polygon, Cardano, Polkadot, Harmony, and Avalanche are all worth a serious look towards suitability for hosting and organizing mechanisms for this type of activity.
With reasonably low gas fees, portfolio allocation can be the job of a smart contract removing any need for human operated validation nodes… this comes at the price of network participation. A middle way can be found with validation nodes / operators that upgrade to a smart contract only system with tenable network awareness, interest and participation.
Similar projects like Crypto20 and CIX 100 have set precedence in similar on-chain mechanisms but their market participation is low. The question begged becomes: how are humans in the loop is still crucial to token economy success?
Using protocols like Ocean for a portfolio token puts token issuance within the data utility category. Other protocols like UMA or Synthetix deserve a closer look.
Can portfolios be calculated in a validate-able distributed way using floating point methods or will a arbitrary fixed point methods be needed?
What role can token assets vs synthetic assets play in this application. Hard assets in the form of original tokens have a better reputation than synthetic assets. Can such a project increase its reputation and integrity by creating a hard asset reserve. Can such a project go “all in” on hard token assets with available layer two or cross chain solutions?
Please feel free to correct anything you think is misstated or misunderstood.