The platform seeks to offer complex functionality with a simplified interface for users, eliminating the most difficult steps in the process.
What is Bundle DAO?
In today’s Decentralized Finance (DeFi) space, it would seem that there has been a growing emergence of complex protocols offering powerful use cases to only the most sophisticated of investors. Fees, a lack of knowledge, and failing to diversify have all been challenges keeping investors from engaging with these advanced DeFi platforms. Although some projects have attempted to solve this issue, they have reportedly fallen short when it comes to diversifying an investors portfolio thus failing to truly maximize returns.
This is the problem that the Bundle DAO protocol looks to solve. Bundle is a Decentralized Autonomous Organization (DAO) operating on Binance Smart Chain (BSC). Bundle looks to offer sophisticated protocol functionality without making the user go through the painstaking processes associated with sophisticated protocols.
Bundles – Smart Indexes to Maximize Returns
Bundle DAO has also introduced their novel technology, the Smart Index or Bundles. The Smart Index looks to maximize investor returns by utilizing a dynamic set of underlying assets. The Smart Index will also be governed by well defined and deterministic operations to better maximize returns for investors.
A Smart Index can be thought of as an Exchange-Traded Fund (ETF) that looks to achieve value by implementing conditions such as: no centralized governance; assets can be added or withdrawn; fractional or transferable ownership of an instrument; and enabling full mobility of underlying assets. Bundle DAO aims to become a new, capital-efficient financial instrument for investors.
Bundles (Smart Indexes): a financial instrument
Bundles are effectively non-custodial crypto ETFs
Native token (BDL)
Audited by Obelisk
Bundles (Smart Indexes): A Financial Instrument
One of the key features of Bundle DAO is their value proposition. Like all protocols, what the protocol is able to do for investors is a major factor in whether or not the protocol is used. In the case of Bundle DAO, that means creating capital-efficient instruments (Smart Indexes) combined with rebalancing procedures and strategies.
The challenge when keeping a decentralized portfolio sufficiently diversified is balancing between compromising for centralization or taking on higher risks of impermanent loss through an unconstrained AMM-as-index model.
Bundle DAO looks to reduce impermanent loss while remaining decentralized by leveraging achievements made in the DeFi tech space while making use of various assumptions around an index.
Bundles Are Effectively Non-Custodial Crypto ETFs
Smart Indexes, or referred to here as Bundles, are non custodial crypto ETFs. As mentioned above, these decentralized crypto ETFs play a huge role in the Bundle DAO model. The Bundles will allow investors to diversify their portfolios by utilizing an adjusted AMM-as-index.
Bundle’s Automated Market Maker (AMM)-as-index will leverage Balancer’s multivariate weighted liquidity to allow rebalancing when needed. Not only that, but Bundle’s adjusted AMM-as-index will also help investors avoid the risk of arbitrage.
Native Token (BDL)
The Bundle protocol will also utilize their native token BDL to allow community governance. The utilities for the token include voting power for protocol governance, insurance staking for token / protocol rewards, and the ability to earn platform fees via token ownership.
Governance will allow users to determine contract upgrades, index initialization, index configuration changes and strategy whitelisting and creation. Bundle’s governance will be introduced over time as the protocol looks to fork Compound’s current governance implementations.
The BDL token will also have other use cases, as BDL will let users and investors pay fees on the protocol. There will be three types of fees: streaming fees (2%), exit fees (.5%), and work fees.
Audited by Obelisk
Very recently, Obelisk’s audit report for Bundle DAO was publicly released. There were two major findings particularly relevant to users. The findings showed that Bundle DAO will have some difficulty in accounting for certain non-standard token migrations. The issue number is #0018 for anyone interested in viewing. Additionally, the reporting found that non-standard ERC-20 tokens, specifically tax tokens, will not and cannot be included in a Bundle. This issue is #0005 in the audit report.
Bundle will also allow users to stake their BDL tokens to liquidity providers. This introduces additional earning opportunities aside from just holding a Bundle. Bundle DAO looks to create an ecosystem of opportunity and wealth creation for their community, and with the integration of staking, such a desired result should be achieved.
The Bundle token BDL will have a fairlaunch with a hard cap of 210 million tokens. According to Bundle’s Tokenomics medium article, 86.4% of their maximum supply will be distributed to the users of Bundle. Bundle has a well-defined 2-year token emission plan, which can be seen below.
In the image, Bundle’s decaying emission plan can be seen over their two year minting campaign. To incentivize early adopters, Bundle will also be tripling their 2 week bonus reward program.
8.6% of tokens released will be sent to funding development and building the core team.
5% of tokens will be sent to the Warchest for strategic expenses. This includes partnerships, audits, among other things.
Source : bsc.news
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