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update nDEFI explanation
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  • src/views/Nest/components/explanations

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src/views/Nest/components/explanations/nDEFI.tsx

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@@ -5,39 +5,31 @@ const nDEFI: React.FC = () => (
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<>
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<NestHeader>Description</NestHeader>
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<p>
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The Polly DeFi Nest is divided into key DeFi sectors, which are given a
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weighting reflecting their maturity and share of the overall market.
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Within those sectors, each project is weighted on the TVL divided by Fully
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Diluted Valuation (FDV).
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The Polly DeFi Nest takes the top 5 projects by TVL on Defillama, which
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have liquidity on Polygon. Each project is weighted on the TVL divided by
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Fully Diluted Valuation (FDV).
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</p>
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<NestHeader>Objective</NestHeader>
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<p>
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To generate revenue a defi project needs value deposited into their
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contracts. This makes Total Value Locked (TVL) a key metric for evaluating
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a project's ability to generate revenue. Projects with a high TVL are also
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likely to gain more traction in the market through the network effects the
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existing capital provides - capital attracts more capital. A good example
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of this is with Yearn Finance. Yearn was able to generate massive amounts
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of revenue as a result of the large amount of capital they attracted. This
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gave them the resources to further develop and innovate their products in
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a positive feedback loop. Yearn’s success has led to many projects such as
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Alchemix and Abracadabra using their products and liquidity as a base
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layer to build on.
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a project's ability to generate revenue.
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</p>
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<p>
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nDEFI is composed of the strongest components in the DeFi ecosystem,
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striving to provide core coverage of the key building blocks for the
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future of finance. With nDEFI you’ll have exposure to infrastructure,
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lending markets, decentralized exchanges, synthetics, and yield
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aggregators. The unique weighting formula allows the nest to invest in
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projects gaining traction earlier and with a greater weighting than market
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cap weighted nests.
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Projects with a high TVL are also likely to gain more traction in the
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market through the network effects the existing capital provides - capital
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attracts more capital.
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</p>
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<p>
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The Polly DeFi Nest will provide the crypto industry's first automated
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value investing, decentralized, tokenized portfolios. When you add the
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prospect of the underlying tokens being put to work to earn yield.
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The weighting formula allows the nest to invest in projects gaining
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traction earlier and with a greater weighting than market cap weighted
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competitors, attempting to invest more in projects that could be
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undervalued by the market.
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</p>
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<p>
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The Polly DeFi Nest will provide the crypto industry's first automated,
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yield bearing, value investing, decentralized, tokenized portfolios.
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</p>
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<NestHeader>Criteria</NestHeader>
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</p>
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<NestSubHeader>Characteristics</NestSubHeader>
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<NestList>
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<li>Be a DeFi project available on the Ethereum blockchain.</li>
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<li>Listed on DefiLlama</li>
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<li>
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Have at least 7.5% of the total supply in circulation and have a
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predictable token emission over the next 5 years.
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The protocols will be selected by TVL based on DeFiLlama’s website.
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</li>
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<li>Have at least $250k liquidity on Polygon.</li>
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<li>Have a Chainlink Price feed on Polygon.</li>
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<li>
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The protocols will be selected by TVL based on DeFiLlama’s website.
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Have at least 7.5% of the total supply in circulation and have a
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predictable token emission over the next 5 years.
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</li>
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<li>
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The protocol must be running for 3 months before qualifying to be

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