[PIP-57] $SCALE index creation

ZK Swap reply to Matter Labs

I wanted to make a similar proposal discussion after seeing the “Invest > Layer 2” in Zerion:

(sorted by market cap in the link)

I think this is a fantastic proposal @Lui.

L2 is emerging and is an open playing field right now. A PieVault that was able to give broader exposure (higher number of projects) would allow investors to hedge the multiple options and bet on the success of the entire ecosystem.

If we can get accurate data then TVL would be a novel way to represent the success of each player, something that definitely hasn’t been done before in this industry.

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I’m in for a TVL weighted L2 pie! Very cool.

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Thanks for the comments all.

In terms of driving forward here.

From my pov there is two questions to determine:

a. Can we confirm the initial projects to include in the pie?
Please throw in any other options you believe should be included. We would need to add additional options like Optimisim, aztec, zksync as they become available.

I would say we give it until this Sunday 7th, to put a finish this process, I would update the initial post with a final list of assets.

b. Organize data using TVL mixed approach.
Once we have the list @gabo we could collaborate on gathering the TVL data and any additional data required for your mixed approach

Next steps: Would the next step then be to put it to a more formal vote or is there some more steps inbetween?

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@Lui this is a very cool proposal and a Pie I’m interested personally in having exposure to.

Looking forward to see the short list by then!

I would like to suggest making the Pie happen today and rebalance when a reliable TVL data feed is available. The idea of TVL based weights is fascinating, however, I could not find any source of truth as of now and I don’t want to see the proposal being paused by it.

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I would tend to agree, especially as we see new L2 products come to market in the coming months, the Pie will need some ongoing updates in any case.

Sounds good, then if we use the typical method we could use the pie_template to prepare some data on it. I admit I had a go at filling out the pie_template but I’m getting all sorts of errors, @gabo might it be possible to get some support there?

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I’m happy to help as well. I’ve been putting together some scripts to facilitate the process, can you send over the final list of tokens?

This Pie concept sounds brilliant and timely. L2 is an emerging ecosystem, exactly a situation where you’d like to spread risk across a basket of players.

Just FYI, Morgan Stanley is “…pioneering a new structure called SCALE, or Stakeholder-Centered Aligned Listed Equity, where returns for the sponsor are primarily dependent on the stock price performance of the company…” Now you can say, “Yeah, yeah, we know about that”.

It’s no reason to mess with the $SCALE Pie name! Which looks extra punchy with the $ symbol :muscle:

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Sure I can send over, will update this thread tomorrow evening as well.

In researching I’ve found a few more possibilities to throw in:

  • Rubic
  • Raiden
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Update

@alexintosh @gabo

I have added some additional tokens. I have misgivings about NEAR, as it seems to be an interoperable L1. If this is included there would also be an argument to including Polkadot and Cosmos. Otherwise I think we have at least 1 entrant for each technology type and some really promising projects included.

Edit: @richandcreamy suggested keeping it as it is EVM. I’m inclined to agree as I like the project.
Edit 2: No erc-20 available for $near, I have removed it from the list.

Here is the current list organised into category of scaleability tech:

ROLL UPS

1 - $LRC from @loopring : Loopring builds protocols, infrastructure, and user-facing products on layer 2 (zkRollups).

2 - $ZKS from @ZkSwaps : ZKSwap is a token Swap protocol based on Automated Market Maker (AMM) similar to Uniswap. Using ZK-Rollup technology, ZKSwap supports all the features you would expect with super high throughput and no gas fees.

3 - $CTSI from @cartesiproject : Cartesi rollups are smart contracts run off-chain on Cartesi Machines. Since these support Linux, developers have the option to dispense with Solidity and the limitations of the EVM to create smart contracts with myriad mainstream software stacks, toolchains, standard libraries, file systems, and other OS resources.

PLASMA

4 - $MATIC from @0xPolygon : Polygon - a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.

5 - $OMG from @omgnetworkhq : The OMG Network leverages Layer-2 Plasma architecture to provide high throughput and strong safety guarantees for third parties who wish to build scalable, decentralized payment apps on Ethereum.

SIDE CHAINS

6 - $SKL from @SkaleNetwork : SKALE Network eliminates unnecessary complexity so that you can speed up your dApps and smart contracts in no time with essentially no additional coding. Use your existing deployment script (for example — truffle, as in this code sample) and just change 2 lines of code to deploy your solidity smart contracts to a configurable decentralized elastic sidechain.

7 - $STAKE from @xdaichain : The xDai blockchain is a sidechain of the Ethereum blockchain. This means it has the same properties as Ethereum, but uses a different method to make sure transactions are valid and consistent across all nodes in the distributed network (consensus). The STAKE token is separate from xDai and is used to protect chain consensus.

STATE CHANNELS

8 - $RDN from @raiden_network : The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. It’s complementary to the Ethereum blockchain and works with any ERC20 compatible token. The Raiden project is work in progress. Its goal is to research state channel technology, define protocols and develop reference implementations.

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Allocation
https://plain-shape-1942.on.fleek.co/?json=https://api.npoint.io/90b34b0f1c2b5d66dd47

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I’ve followed your tutorial and updated the allocation as the previous one looks to be missing STAKE:

https://plain-shape-1942.on.fleek.co/?json=https://api.npoint.io/a378c05864474e14ed10

What do you think about adding a max allocation of 20% to reduce the dominance of LRC, OMG and MATIC? The counter argument though is that, as other options like zksync and optimism release, we would be adding additional tokens which would reduce the dominance.

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Yes it’s a good point. I guess it doesn’t really matter as allocation will more than likely changes very soon. And I guess new tokens will need a big allocation.

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I tend to agree, rather get the pie baked and adjust, unlike with YPIE, we know that some big ones are coming soon.

Will be something to keep in mind in terms of managing this pie as well, need to move quickly to add additional assets to catch their launch momentum

yes. But then the problem is also that we are supposed to wait several months before adding a new token … so… should we make some exceptions ?

It’s a shame we missed the coinbase listing for SKL and MATIC just now. https://twitter.com/CoinbasePro/status/1369346092647788551?s=20

Goes to show though that Coinbase is interesting in also listing scaelability options and that the Pie is in the right place right now.

Made an allocation with max weight 25% https://plain-shape-1942.on.fleek.co/?json=https://api.npoint.io/a9cf77dae599fae841e7

Allocation

LRC: 25.00%
ZKS: 15.03%
CTSI: 1.88%
MATIC: 25.00%
OMG: 23.74%
SKL: 5.18%
RDN: 0.95%
STAKE: 3.22%
SharpeRatio 2.7045888651653986
Performance 1.1307455446834516

That’s too bad, anyway, it looks to me like we are only at the beginning. Let’s move it to vote soon?

[edited]

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+1 :ballot_box:

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Looks like we have SKL and SKALE in the allocation so there is a duplicate there.Otherwise LGTM would be happy to put it to a vote.

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