Portfolio Builder

After a conversation in the Discord General thread it was suggested to start a Portfolio Builder experiment which would create a number of different Portfolio Models which would be tracked throughout the year to assess performance .

The idea came about after viewing a similar experiment carried out by Bankless which created 3 different Portfolios in Jan 2020. The results of these Portfolios were published in Sep 2020 and then the recommended design was changed to reflect new opportunities made possible by the Farming craze at that time.

The original Bankless Portfolio design of Jan 2020.

The original Portfolio results

The new design in Sep 2020

Proposal
GE Name : Portfolio Builder
Time frame : Week 1 to Week 52
Hypothesis : These Portfolios can be used as concrete proof of the trustworthiness and effectiveness of using PieDao products and would be invaluable in marketing campaigns.
Description : Create Portfolios suitable for every user type profile e.g
1 Conservative Investor
2 Medium Risk Investor
3 High Risk Investor
4 Very High Risk Investor(Leveraged Portfolio maybe using Alpha Finance )
Metrics : Weekly, Monthly and Yearly Rate of Return.
Definition of success : Minimum return expected = Initial Investment X 2
Resources : I’m not sure how much month sponsorship would be required given gas costs atm. I will need advice from the Team here. I do not know either how much dev time is needed to setup analytics tracking and design etc.

I’m new here so please let me know if I have left anything out

Thanks for taking the time to read this proposal.

7 Likes

I like this proposal.

I think we need to agree on specific holdings for each portfolio, and then it’s pretty simple:

  1. Approve funds to put in each portfolio (1,000 DAI 1 ETH each?)

  2. Take gas from the starting funds - no additional gas compensation needed

  3. Put each portfolio in a separate wallets and track in Zerion or Zapper - no custom analytics needed

I like this proposal as well.

It will provide a constant source of marketing material, checking in on the performance each month. Your suggestions @jnova seem like a good place to start.

Should we ask for combination suggestions from users for each portfolio and should we limit them to PieDao products.

Maybe we could create one portfolio consisting of the best products offered by competitors and to use that to compare against.

It would make the experiment transparent and would negate any accusations of shilling.

Hey @Bozo. Welcome here

I’m not completely sure I understand this idea behind this GE.

Do you want to create separated wallets with a different bunch of tokens. And after one year compare how they behaved ? And the goal will be to use results for a marketing purpose.

So we will be able to use those results only after 1 year and during this period those Pies won’t be available.

If it’s the case, you should read this article:

https://medium.com/piedao/announcing-defi-and-a-comparative-index-performance-analysis-9f63e251120d

For marketing purpose it’s better to analyse existing Pies, and show that they are useful. So users can directly use them.

Also, what you are suggesting can also be make (for free) using back-testing. It’s what we already do when we want to release a new Pie, check this proposal for and example.

Hi, goal is to create 4 live portfolios with each one fitting an investor profile.

They would be continuously analysed and adjusted as needs be.

They can be used as a guideline by anyone to build a portfolio but are live portfolios backed up by real results, not just projections or by back testing.

New users particularly want to see proof of results and I think it would benefit PieDao to promote it and drive interest towards the DAO.

The Bankless program was a collaborative effort between them and Zerion so maybe PieDao could do the same. It would raise the profile of PieDao if for example it could be promoted by Bankless + Zerion .

In my own experience I was looking at traditional ETFs and then started looking at Crypto alternatives. I found out about Bankless through DefiPulse https://defipulse.com/defi-list
and Bankless led me to PieDao.

The one question that struck me was
“why don’t these Indexes have a higher profile”.

Did you read the original Bankless article?

I think this is a great idea, but I would love to see this more complete with an actual professionally curated report after the 52 weeks expire, so we can send this report to potential investors, marketing, historic data, promotion, and so on.

Also, it would make sense in my opinion to buy the required assets directly for the DAO and add them to our treasury portfolio, so we have an on-chain proof of our report that perpetually benefits everyone in the community, with additional compensation given for the members that ultimately take care of it all and coordinate the effort.

I agree with you.

Hopefully more members will give an opinion and we can get this moving

Haha yes I read it.

But I think it’s 2 different things. Bankless has 2 goals:

  • Help new users and show what could be a nice portfolio
  • And mainly promote Zerion and tokensets :smile:

They don’t have a product. So it was just to show that diversifying is a good idea and give some ideas on how to do.

But regarding PieDAO, I don’t see how it could help for marketing.
We already have solutions. People can already use it. We already have back-tests to prove that it’s working. But more importantly real data based on past performances . So we should promote that. And create more Pies.

Here people will just see that:

Look what we could have done ! it seems to work, its cool … but we didn’t do it !

If the idea is just to buy BCP, and put it in a wallet with nothing else, i’m not sure how it wll be better than what was done in the first article I shared. But I agree that we could do this kind of articles more often !

I think my main question/concern/what i don’t really understand is why we want to create and share something hypothetical when we already have a working product, and we can clearly show that it’s already working.

For marketing purpose it’s always better to show what we have done and not, what we can do.

I’m a fan of this initiative and have similar thoughts to @Lui!

I 100% support this idea. I see it as an R&D investment to further develop the offerings on PieDAO.

One of the most asked questions on Discord is which pie’s should a person hold and in what quantities- that in itself is a personal question that varies depending on goals and risk profile. If we can leverage past pie performance data + Portfolio Builder data we can create pre-curated “personas” that we can offer from the PieDAO site. If we can integrate the oven feature to mint directly to these “Personas” we can further facilitate the experience for the majority of our users. Set it and forget it.

Related to building the Portfolios above is the promotion of them.

I have an idea for a promotion of BCP which could create interest in other Pies.

On the 11th Feb Sandbox are holding a Public Land Sale in combination with CoinmarketCap… This is in the NFT/VR/Gaming space . https://medium.com/sandbox-game/the-sandbox-public-land-sale-wave-1-featuring-6-coinmarketcap-premium-nft-heroes-ba7c5556af6b

The Sandbox public LAND sale will be the first of several sales throughout the year.

The NFT/VR/Gaming space is mostly made up of younger artistic people who might not necessarily be focusing on building a portfolio but would probably be drawn more to get rich quick type trading.

PieDao could promote their BCP all in one portfolio at this or similar events in a similar way to how Traditional Banks promote their savings accounts to College and University Students at Open Day Fairs.

The promotion could simply be a prize for a gaming tournament. The winner could get a BCP Token with say $1000 deposited into it.

The incentive to a Gamer to take part in the tournament would be to have a secure portfolio which would hedge their ruskier trading throughout the year .

All gamers like to compete and this would raise PieDaos profile within a growing community .

Messari are really Bullish in NFTs this year in their 2021 Theses.

It’s just an idea but maybe others could add to this or see similar possibilities elsewhere.

I moved the topic to the #idea section while waiting for the discussion to develop.

More info: How To Prioritise PIPs & Guidelines For Good Interactions in the Forum

Thanks