Status: Proposed

Discussion link: https://gov.cook.finance/t/defi-league-steering-committee-index-on-bnb-chain/200

Created: 02/18/2022

Executive Summary

Over the last decade, the Blockchain world has emerged, undoubtedly, the fastest growing industry. With over $3 trillion in value, 300 million global users and thousands of projects interacting with the technology regularly. However like any new piece of technological advancement in human history, the blockchain sector has been riddled with many challenges. Some of the most prevalent challenges include:

• Security Lapses
• Scalability
• User-friendly Interoperability
• Developer support
• Regulatory Compliance

In a bid to find effective solutions to these challenges, Binance-led blockchain, BNB chain has moved to create a team of proven innovators, thought leaders and key industry players to collaborate towards creating interoperable solutions and building the infrastructure required to handle the future volume of users, data, assets. This team of Industry leaders has been tagged the BNB DeFi League Steering Committee. (BNB - DLSC)

In succinct terms, the BNB-DLSC is a group of founding projects joining forces to establish the wider DeFi League organization. The Members represent some of the world’s most innovative projects who have made giant strides towards creating a multi-chain future in DeFi.

The founding members of the BNB-DLSC include: PancakeSwap, LayerZero, NodeReal, MCDEX, DODO, Venus, Deri Protocol, Tranchess, Celer cBridge, Alpaca Finance, ApolloX, Chainlink, GSR.

Problem Statement

Portfolio allocation concentrated in a single token is highly risky. Hence, investors seek to diversify their risk, by allocating across different projects. However, doing in-depth research to figure out the right assets to pick can be quite challenging. In addition, monitoring each asset independently can quickly become cumbersome. Likewise, it is also quite costly to swap tokens and move funds across different bridges.

Proposed Solution

Overview

This DLSC provides a great diversification opportunity for DeFi users. By creating an Index that tracks to native tokens of these stellar projects, DeFi users are now able to diversify their risk by simultaneously gaining exposure in a basket of non-correlating successful projects.

The Proposed Components of the DLSC Index are as follows:

CAKE MCB DODO VENUS DERI CHESS CELR ALPACA APX LINK

Rationale

The DLSC Index will provide a unique diversification opportunity for DeFi users on the Cook platform. The DLSC puts these founder projects in the driver's seat to shape the future of DeFi globally. These create limitless growth opportunities for each of the committee member projects. Here are some examples:

• First Movers Advantage: By proximity, BNB-DLSC members are likely to have first hand access to new tech and infrastructure to implement new efficient solutions. Such first mover advantage can give them a significant headstart to generate growth spurts ahead of the rest of the market. Index selectors in the DLSC Index will stand to benefit directly from this.
• Proven Legitimacy: DLSC founding members have been independently audited and deemed to have contributed immensely to DeFi over the last few years. Hence, by Virtue of their participation, DLSC members are proven to have long-term skin in the game. This gives Index selectors confidence in the long-term viability of the DLSC Index.
• Access to Community Feedback: By nature of the DLSC, member projects will constantly have access to information and feedback from DeFi users globally. This can enable them to make quick tweaks and launch new features.
• Global Publicity: The DLSC has the potential to boost the popularity of the founder's members globally.

Specifications

Allocation for each component should be equally even for all the available BEP20 tokens on BNB Chain https://twitter.com/BinanceChain/status/1494042424422842378