First Polygon Index - Call For Token Suggestions

Hi all - hope you had a great Christmas break!

I’ll get right to the point: some progress has happened regarding our presence on Polygon, and it’s worth talking about and getting some thoughts from the DAO.

The Indexed infrastructure is now live on Polygon as of Christmas Eve, and was rounded out by the deployment of the Narwhal swap router there yesterday.

We’re now at the stage where we can deploy indices on Polygon whenever we reach a consensus about what should be included.

To that end, there are some decisions to be made about whether a first Polygon index should only include tokens that are native to Polygon, or whether there’s space to include tokens that have been bridged over from Ethereum mainnet.

To that end, I’ll create a Snapshot soon that’ll run for a few days to gauge interest.

In any case, what needs to happen now is a collection of tokens that we - as a DAO - think deserve a place in such an index. For the sake of deploying a first one, my personal opinion is that we can be fairly loose about what gets included provided it’s legitimate - lower gas fees means that we can maintain a much wider candidate list without it costing hundreds of dollars to update scoring strategies.

A few things to note:

Firstly, the oracle - which uses Quickswap to obtain TWAPs of tokens - gauges against WETH pairs rather than WMATIC - there appear to be a lot more decently-liquid pairs against the former.

Secondly, we - for now - remain bound to a single AMM for oracle pricing: if a token is exclusively available on SushiSwap (Polygon) then we can’t price it until the metaoracle is finished and deployed (which we’d likely have done by now were it not for the exploit taking two months of our time).

Thirdly, we remain bound to the ‘at most 10 assets can have weights bound to them at any one time’ constraint of the Indexed V1 pool factory, and the number N of weights is fixed upon pool deployment. Once Indexed V2 is released, existing pools can be upgraded and freed from this restriction: we could drop the number of assets bound in an index to as low as 2, or as high as 100.

My personal belief is that this first index should be a CC10 of sorts on Polygon (although not named as such). To that end, the first name that popped into my head earlier was something like the Aggregate Polygon Exposure (APE) Index, that simply captures the largest assets by market cap depending on the filters of bridged-vs-native and sufficient Quickswap liquidity. Happy to get booed down on any point there - especially the name - but that requires folk to give their thoughts rather than just assuming that ‘devs will do something’.

@Kuza - I know you’ve been working on a list of tokens (and their QS {X}-WETH liquidity) that are native to Polygon. If you can pop them here as a reply, I’ll do the same with bridged assets. Everyone else reading, if you’ve got a particular favourite that’s missed out or you think deserves inclusion, pop in and say as much and why!

Looking forward to hearing what people have to say!

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I’m a mere simpleton on these matters but my preference would be an index more weighted towards Polygon native coins or at least those not readily available on CEXs.

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So far the tokens I’ve looked at are these:

Qi DAO - QI/WETH = $621,846 - QuickSwap Info
Qi DAO is a lending/borrowing platform.

DinoSwap - DINO/WETH = $2,134,676 - QuickSwap Info
DinoSwap is an AMM with a Eth <-> Poly bridge with $66m TVL

Ramp DeFi - RAMP/WETH = $574,309 - QuickSwap Info
Ramp DeFi is a lending/borrowing platform with $65m TVL

Aavegotchi - GHST/WETH = $5,947,820 - QuickSwap Info
DeFi collectible game with NFT’s and staking.

Impermax Finance - IMX/WETH = $619,479 - QuickSwap Info
Impermax Finance is a leveraged LP farming platform, with functionality on multiple chains. Cross-chain TVL of $44m.

pNetwork - PNT/WETH = $316,017 - QuickSwap Info
pNetwork facilitates cross-chain asset transfers with $167m TVL.

I don’t think these tokens alone would make a good index, but including a few of these in with some of the larger projects on Polygon could make an interesting index.

Everyone, feel free to add other tokens to this list, I’ll add some more later on.

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I am in favor of polygon only.
Simply for the means of differentiation.

Regarding the composition, no input from my side, but I do not see value in picking risky projects. Instead, I recommend strong due diligence.

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I have a technical question: If we were to, hypothetically, create a new index on Polygon that matched an index on mainnet, am I correct in assuming that the Polygon index would not be interchangeable with the mainnet version? I ask because if we were to create, let’s say, another “blue chip” index on Polygon, would this show up as two separate tokens in a user’s wallet?

Second, I feel that with Polygon indexes, we should reconsider the idea that we need a secondary market for the indexes. Since gas is so cheap, users could simply mint/burn tokens. This saves the DAO on the responsibility of maintaining liquidity on the index-ETH pairs.

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My non-voting 2sats is: best possible coins/tokens regardless of whether they are native or bridged etc.

The Polygon foundation can pay their own PR, no need for Indexed to try to carry their water IMO.

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Aye, even if a pool on Polygon had exactly the same assets bound, the nature of the different oracle (Quickswap) that they’re obtaining scores from could (and probably would) lead to different weightings for those weights - that and the fact that the assets would be held in two distinct pools (one on mainnet, one on Polygon).

You wouldn’t really be able to draw an equivalence between the two.

I’m inclined to agree on the need to not incentivise as much liquidity over on Polygon, provided that people are made aware of the fact that the 2% fee applies if they’re doing it with single assets. They can consider that a baseline slippage, or just grind through and collect all the assets they need. We can’t reduce that 2% lower because otherwise the potential for IL leakage gets introduced.

So I’ve been looking at the WETH pairs supported on Quickswap for tokens that are bridged over, and surprisingly some of the ones that you’d expect are either not there at all or have rice-paper thin liquidity: presumably due to either the politics of supporting the token of a competitor (e.g. Sushi) or said token just has liquidity elsewhere (Curve).

With that said, here are some of the largest non-stable pools against WETH on Quickswap, let’s see if we can’t derive something from here:

Pair Liquidity
WMATIC-WETH $118,457,858
WBTC-WETH $51,847,494
WETH-AAVE $9,130,662
LINK-WETH $6,010,976
GHST-WETH $5,764,067
WETH-TEL $5,155,638
WETH-QUICK $4,629,689
WETH-ADDY $2,764,576
COMBO-WETH $2,101,205
WETH-DINO $1,198,478

And the list goes on. A lot of the bridged tokens such as UNI exist but have sub-million liquidity (e.g. WETH-UNI at $782,695). I’d hazard that about $500,000 is enough, but I’ll defer to @d1ll0n on this.

It’s important to note that the liquidity of these assets are only important insofar as there’s a necessity for them to be high enough to not be gamed over a 24-hour TWAP reading: these amounts don’t necessarily inform the slippage that people can be expected to incur when trading them: the Narwhal router allows swaps between assets to utilise either Sushi or Quickswap depending on where is more liquid. This is simply a matter of looking at what can be added at this point.

[And, to keep banging this drum, the metaoracle blows this ‘we’re just bound to a single AMM’ restriction wide open, when it’s finally finished, audited and released.]

Tomorrow I’ll create the Snapshot with a simple, up-or-down “should the first Indexed product be native-Polygon only or include bridged tokens as well” question.

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I’ve also just done the rounds and come up with these findings:

Token list: Polygon DeFi Ecosystem - List of the Best Polygon Projects

Asset Management Tools:
Dhedge - DHT - None
InstaDApp - INST - Quickswap($4,156) - QuickSwap Info
StakeDAO - SDT - None

Alternative Savings Apps:
PoolTogether - POOL - Quickswap($15,284), Uniswap - QuickSwap Info

Derivatives:
mstable - MTA - None
NFT20 - MUSA - None

Yield Aggregators on Polygon:
Autofarm - AUTO - ?
Beefy Finance - BIFI - Quickswap($10,040) - QuickSwap Info

Decentralized exchanges on Polygon:
1inch - 1INCH - Quickswap(no weth) - QuickSwap Info
Balancer - BAL - Sushiswap - $0.00 | BAL | SushiSwap Analytics
Curve - CRV - Quickswap($2,249) - QuickSwap Info
DexGuru - None
IDEX - IDEX - Quickswap(no weth) - QuickSwap Info
Jellyswap - None
Matcha - ZRX - Sushiswap - $0.76 | ZRX | SushiSwap Analytics
Paraswap - PSP - Quickswap(no weth) - QuickSwap Info
Quickswap - QUICK - Quickswap($4,634,442) - QuickSwap Info
Sushiswap - SUSHU - Sushiswap - $9.14 | SUSHI | SushiSwap Analytics

Margin Trading on Polygon:
Fulcrum - BZRX - None

DeFi Infrastructure & Dev Tooling:
bZx - BZRX - None
Chainlink - LINK - Quickswap($6,045,581) - QuickSwap Info
QuickNode - None
The Graph - GRT - Quickswap(no weth) - QuickSwap Info
UMA - UMA - None

Polygon-based DAO Platforms:
dxdao - None
daohaus - HAUS - None

Decentralized Insurance Platforms:
InsurAce - INSUR - Sushiswap($289,369.41) - $0.91 | INSUR | SushiSwap Analytics
Opium - OPIUM - None

Decentralized Lending on Polygon:
Aave - AAVE - Quickswap($9,181,902) - QuickSwap Info
C.R.E.A.M - CREAM - None
Fulcrum - BZRX - None
Torque - BZRX - None

Payments Solutions and Service Providers:
Polygon - wMATIC - Quickswap($119,211,515) - QuickSwap Info

Marketplaces:
OpenSea - None

Prediction Markets:
Augur - REP - None
PlotX - PLOT - Quickswap(no weth) - QuickSwap Info
Polymarket - None

Stablecoins:
Dai - DAI - Quickswap($14,078,834) - QuickSwap Info
Frax - FRAX - Quickswap(no weth) - QuickSwap Info

Analytics:
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So what is the absolute min liq or volume that we can accept?

And how soon can we move to wMATIC pairs as well? Whats the issue there?

A few philsophical suggestions:

  1. No AMM tokens. These just get diluted by emissions until eternity and don’t fit a long term index in any way. Staked versions might be different if we can get liquidity/unstaking (Like dQUICK)

  2. No autocompounder tokens. Same as above, but even less of any future.

and finally, we 100% need to have QI and AAVEGOTCHI included. Those are 2 polygon powerhouses.

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If we use the minimum liquidity requirement of $100,000, then these are the possible pairs we can use on Quickswap.

I’ve also included WMATIC pairs since it’s been mentioned by @Norsefire that it may be possible to use WMATIC pairs instead of WETH pairs.

I’ve done these up in a list so that people can construct their own list of tokens for the index and so we can come up with an agreement on what tokens to include.

# Pair Liquidity # Pair Liquidity
1a WMATIC-WETH $118,051,688 1b WETH-WMATIC $118,051,688
2a WMATIC-SAND $117,930,826 2b WETH-USDC $87,959,425
3a WMATIC-USDC $53,459,908 3b WETH-WBTC $52,133,754
4a WMATIC-USDT $20,180,818 4b WETH-USDT $30,024,263
5a WMATIC-QUICK $12,493,800 5b WETH-DAI $11,516,732
6a WMATIC-QI $9,672,575 6b WETH-AAVE $9,210,333
7a WMATIC-RISE $3,565,402 7b WETH-LINK $6,066,880
8a WMATIC-AVAX $3,351,047 8b WETH-GHST $5,857,850
9a WMATIC-NSHARE $3,196,421 9b WETH-TEL $5,142,680
10a WMATIC-KIRO $2,832,793 10b WETH-QUICK $4,337,176
11a WMATIC-SOL $2,508,850 11b WETH-NACHO $3,895,573
12a WMATIC-TEL $2,145,846 12b WETH-ADDY $2,617,208
13a WMATIC-mOCEAN $2,078,933 13b WETH-COMBO $2,101,553
14a WMATIC-KOGECOIN $2,030,872 14b WETH-ELON $1,508,616
15a WMATIC-XZAR $1,768,389 15b WETH-DINO $1,143,469
16a WMATIC-MANA $1,737,514 16b WETH-MOCA $1,133,559
17a WMATIC-DG $1,736,230 17b WETH-DPI $1,070,469
18a WMATIC-START $1,596,761 18b WETH-GAMER $827,255
19a WMATIC-CYC $1,574,990 19b WETH-polyBUNNY $824,973
20a WMATIC-FODL $1,432,191 20b WETH-UNI $777,571
21a WMATIC-NITRO $1,361,586 21b WETH-UCO $746,656
22a WMATIC-FTM $1,357,498 22b WETH-TECH $713,611
23a WMATIC-PSP $1,287,205 23b WETH-PLA $638,523
24a WMATIC-AUMI $1,123,362 24b WETH-QI $626,480
25a WMATIC-WCRO $1,106,286 25b WETH-IMX $588,614
26a WMATIC-YEL $1,079,947 26b WETH-eQUAD $579,898
27a WMATIC-CRBN $911,489 27b WETH-LMT $574,906
28a WMATIC-GSG $907,837 28b WETH-RAMP $544,399
29a WMATIC-1FLR $889,782 29b WETH-VISION $522,165
30a WMATIC-GM $849,471 30b WETH-$ANRX $473,452
31a WMATIC-YAYO $697,543 31b WETH-VIDYA $452,879
32a WMATIC-TRADE $689,709 32b WETH-DSLA $439,035
33a WMATIC-miFARM $681,473 33b WETH-OM $420,403
34a WMATIC-MASQ $678,921 34b WETH-WOO $402,877
35a WMATIC-BCMC $667,305 35b WETH-BEL $366,280
36a WMATIC-KITTY $656,423 36b WETH-ORE $337,661
37a WMATIC-MGH $649,007 37b WETH-UM $324,251
38a WMATIC-CAT $630,863 38b WETH-ATK $321,551
39a WMATIC-ELIXIR $592,484 39b WETH-MCRN $319,887
40a WMATIC-SHIB $533,690 40b WETH-PNT $317,040
41a WMATIC-ERN $530,694 41b WETH-SCA $307,366
42a WMATIC-ANGEL $484,891 42b WETH-KNIGHT $306,785
43a WMATIC-WIXS $466,133 43b WETH-DEFIT $305,960
44a WMATIC-SALE $448,820 44b WETH-CEL $260,449
45a WMATIC-PECO $429,193 45b WETH-WSG $244,585
46a WMATIC-KITTY $410,837 46b WETH-GLQ $244,197
47a WMATIC-WHIRL $373,242 47b WETH-XED $238,476
48a WMATIC-DEUS $363,490 48b WETH-GAME $213,982
49a WMATIC-PRYZ $340,658 49b WETH-GOVI $209,982
50a WMATIC-RBN $339,565 50b WETH-LUNA $209,498
51a WMATIC-DAI $330,806 51b WETH-GMEE $209,168
52a WMATIC-DOGIRA $321,664 52b WETH-mETHMOON $187,797
53a WMATIC-PGEN $287,036 53b WETH-renDOGE $185,479
54a WMATIC-XGEM $185,372 54b WETH-TIME $182,911
55a WMATIC-PAD $177,517 55b WETH-JRT $174,208
56a WMATIC-WHEY $126,820 56b WETH-mRATIOMOON $159,752
57a WMATIC-QC $99,195 57b WETH-WCHI $156,390
58b WETH-MEM $153,976
59b WETH-SOL $150,446
60b WETH-WISE $149,627
61b WETH-AXIA $133,444
62b WETH-MCASH $130,430
63b WETH-KASTA $128,812
64b WETH-NEXO $126,034
65b WETH-MODA $124,105
66b WETH-NFD $120,242
67b WETH-GLM $116,994
68b WETH-WOW $116,675
69b WETH-WEB3 $110,712
70b WETH-AWS $110,697
71b WETH-YLD $108,393
72b WETH-LELX.io $104,329
73b WETH-DMT $97,379

As an example for creating an index from the list, here’s my take on a Polygon Index I’d like.

# Pair Liquidity
1b WETH-WMATIC $118,051,688
8b WETH-GHST $5,857,850
10b WETH-QUICK $4,337,176
24b WETH-QI $626,480
25b WETH-IMX $588,614

Feel free to create your own!

Hello NDXFi community , appreciate the Indexed infrastructure deployment on Polygon and Narwhal swap router as well .
Among the suite of interesting ideas being floated on this forum proposal would to bring notice to some interesting tokens .

Defi exposure -

Qi -
Gives users ability to leverage on volatile assets , use them as collateral and mint Mai ,use across flourishing ecosystem . Team has delivered new features regularly ,with the recent one giving ability to Qi stakers to drive lending emissions ,similar to Curve gauge . This may give the index holders significant powers for driving Defi TVL because of underlying Qi .
On a fundamental level , the protocol has retained earning (34 weeks )of 6.7 mil USD on a mcap of 29 mil ,which makes the token relatively quite undervalued .
Ref - QiDao Fundamentals Review: Week 34 (12/20–12/26/2021) | by Lao Zi | Dec, 2021 | Medium

Crv -
In light of the recent Crv wars accumulating Crv seems a great cash flow producing asset , as index holders can earn Curve bribes via the underlying Crv being locked as veCrv , this can be done via from Polygon network without ever going to Eth from users perspective using the polygon fx-portal bridge .

GNS -
gains.trade is relatively lesser known next-gen decentralized leveraged trading platform where users can trade 40+ cryptocurrencies (up to 150x leverage) and 10 major forex pairs (up to 1000x) on the Polygon network . It has recently been putting solid on chain numbers with daily notional volume being upwards of 50 mil and cumulative volume > 1.6B . GNS the native token is part of trading engine , as more trading volumes are realized , more deflationary pressure is put on GNS supply . In a world where decentralized derivatives will be a big part of defi , GNS seems a future blue chip asset .
On chain stats

Metaverse exposure -

Decentral games - $DG
Decentral games is a Free to play, play to earn gaming in the metaverse.
Users can play ICE Poker, trade NFTs, vote in the DAO, and earn real value from their favorite games .
The project has high number of real users , and has a massive treasury .
The project has treasury of about 53 million on a mcap of 93 mil . which relatively makes it quite undervalued .

Feel free to reach out to me on twitter at @0xkhan_ for any queries , I could not post more than 2 links in this post .
Disclosure-

  1. Individual is a part of Polygon foundation Defi team .
  2. Opinions here are individual’s own and do not represent foundation’s.
  3. Individual may have positions in some or all of assets mentioned.
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