Why Confluence Analytics Chose PieDAO’s BCP for Their Eco DeFi Index.
Balanced Crypto Pie has been one of PieDAO’s greatest success stories so far.
An even 33.33% split between BTC, ETH, and the most diversified DeFi index on the market DEFI++, BCP has gained a sizeable market share. BCP’s multiple levels of smart pools generate a wealth of swap fees for the token holders, and as recent market dips have demonstrated, the greater the volatility, the greater the rewards for BCP holders.
More and more people are recognising the value of diversification as the best way of gaining exposure to the rapidly growing cryptocurrency sector.
Just one of those paying attention to BCP has been Confluence Analytics, a US-based investment firm specializing in cutting edge opportunities tackling the biggest issues head on.
Confluence Analytics’s My DeFi Pie (Eco)
Confluence Analytics’s My DeFi Pie (Eco) is an exciting new product that simultaneously provides exposure to the opportunities of cryptocurrency while also creating a positive impact on the most pressing environmental issues.
My DeFi Pie Index (Eco) is 60% Balanced Crypto Pie and 40% rDAI, a yield-generating stablecoin that directs a portion of profits to Offsetra.
Offsetra are an environmental group tackling issues from the protection of the Amazon rainforest to supporting affordable renewable energy in Honduras.
Offsetra themselves are using blockchain technology to streamline efforts to tackle environmental efforts with dramatic results, demonstrating just how game-changing decentralized technology truly is.
But Why Did Confluence Analytics Choose PieDAO’s BCP for this index?
We caught up with Confluence Analytics CEO Conor Platt and CTO Jeff Bennett (who also plays a leading role at Balancer) for their take.
Q) What is My DeFi Pie (Eco) and why did you build it?
A) Conor: We are uniquely positioned to bring together two very different worlds. Most crypto-focused companies are not also licensed fiat index providers — such legal barriers are one reason there are not more fiat-based derivative products in crypto. Conversely, most fiat index providers are not especially crypto-savvy.
With smooth onboarding for traditional finance consumers who want “safer” exposure to crypto, plus decentralized access to fiat securities for seasoned DeFi veterans tired of the “yield chasing” rat race, these products target the “new crypto user” of the 2020s. As a bonus, many of these new users — particularly those on the crypto side — tend to be in a demographic that is very receptive to ESG (environmental, social and corporate governance) messaging.
These offerings represent the first step on the road to developing a “Robo advisor” platform serving both fiat and digital assets.
Q) Why was BCP the perfect product for the index?
A) Jeff: We wanted balanced exposure to DeFi, but in a simple form we could easily explain to investors — and would not have to actively manage. PieDAO products were a perfect fit. At the time we were first developing the concept, DeFi++ had not yet been released, so we were originally going to use Defi+L.
When DeFi++ came out, that was even better — the only thing that wasn’t ideal was the lack of direct exposure to BTC and ETH, which we wanted in both products. So the original index had rDAI, BTC, ETH, and DeFi++.
And then BCP came out — and solved the rest of our problems! Now we had everything we could ask for in a simple, two-token pool.
Q) Do you see DeFi as the future of finance?
A) Conor: Yes, the ability to create investment solutions that both go beyond traditional products, but also align capital to solve longer-term issues and be profitable. If that is the is your definition of the future of finance, then yes.
Our team builds lots of investment solutions and has soup-to-nuts product creation experience in the Equity ETF space. DeFi is the best sandbox I know of: technical white space + global distribution all in one.
A) Jeff: Absolutely! There will be resistance from the established power structures, but adoption of a clearly superior form of money is as inevitable as cars replacing horses, or whale oil lamps yielding to light bulbs.
One of my favorite quotes is from Eric Weinstein, on the fundamentally different nature of the source of value in crypto. Fiat currencies are secured by future taxes, extracted at gunpoint. And gold, wealth of the ancients, was conceived in exploding supernovas. The true means of production will always be the human mind, set free to create — and the invention of cryptocurrency is among its greatest achievements. As Weinstein said, it is the first store of value free from the violence of both stars and men.
With the world economy in shambles, reeling from the Corona crisis on top of all the usual disasters, and no end in sight — the separation of money and State cannot come soon enough.
Q) DAOs and traditional institutions offer different approaches and different benefits for end users, do you envision a continued strengthening of ties here? How can the two play off each other’s strengths?
A) Conor: I think that technology and the adoption of certain aspects of DAOs will eventually find their way into certain institutional products. For example, shareholder proxy voting is an area where DAOs and blockchain technology could be really beneficial to traditional investors.
A) Jeff: DeFi offers total freedom — absolute control of individual financial destiny — yet the aspects most thrilling to DeFi degens can be absolutely terrifying to “normies” accustomed to walking into their local bank branch, or calling customer service.
We hope to introduce “traditional” investors to the wild world of crypto in a way that feels — and is — as safe or nearly so as the banks and investment managers to whom they have so far entrusted their wealth.
Conversely, the world of traditional finance has much to teach the new kids on the block. From its humble origins under the Buttonwood tree in 1792, the norms and practices of Wall Street evolved for a reason, guided and constrained by immutable human nature — hence the proliferation of suspiciously similar, “same but different” products and services in the crypto space.
DAO consensus mechanisms put something of a human face on the Byzantine (literally!) fault tolerance algorithms and long hexadecimal hashes that make crypto so intimidating to the uninitiated. As a more robust, less corruptible vessel to constrain and productively channel the frantic energies of fear and greed that drive all markets, it is perhaps the most resilient and durable institutional form we flawed human beings are capable of creating.
Just as Generation Y grew up as digital natives, Generation Z will be crypto natives. Confluence hopes to distil centuries of traditional investment wisdom into products that are creative, yet familiar and comfortable to both aging Gen X’ers, and the emerging generation of crypto natives. We offer a full service investment experience: from X to Z.
Q) How is Offsetra’s use of blockchain impacting their environmental work?
A) This isn’t Offsetra’s first foray into DeFi. As a team of crypto enthusiasts, they have jumped at the chance of getting more involved in the rapid innovations taking place within the world of crypto. For example, they recently worked with NFT artist Sven Eberwein to mint an art piece representing 1000 tonnes of carbon offset. You can read about that collaboration: $MEME x Sven Offset. They are also working with the Spendless team to create an rDAI pool where users can donate interest to sustainability projects in their portfolio.
Q) What is the Global DeFi Rollout?
A) We are using the UN Sustainable Development Goals (SDG) as a guide to create funds that address both investable SDGs and non-investable SDGs, while offering systematic exposure to crypto and other assets on-chain.
DeFi is the best platform to bring this solution to a global audience. As part of the rollout, we will tailor a portfolio of future-proofing solutions, with ESG Equity exposure specific to particular countries — starting with Norway and South Korea.
We will use this initial rollout as a testbed for training our indexing engine to create customized solutions for global institutions and investors.
Conclusion
It really was incredible to see BCP in Confluence Analytic’s Eco DeFi Pie and learn more about their perspective on the DeFi revolution and the wider environmental and social vision.
Thank you to Conor and Jeff for taking the time to give such detailed answers!
Don’t forget you can get hold of $BCP from the PieDAO exchange or mint your own tokens using the underlying assets. You can also use the community oven to mint BCP with 97% less gas costs.
You can also stake your BCP for yield, and over the next two weeks we are also incentivizing the BCP / ETH pair on Loopring’s L2 DEX. 30,000 DOUGH is available for liquidity providers!
PieDAO is a decentralized organization dedicated to bringing market accessibility and economic empowerment to anyone with an internet connection through Pie Protocol. Anybody in the public community may support these efforts by completing bounties, making feature requests, or proposing new Pies. DOUGH token holders are the DAO’s decision-makers, governing which proposals are accepted. If you want to know more about PieDAO:
👉 PieDAO website
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