Pollen Dev Blog — Third Edition
In this week’s Pollen DeFi Dev Blog, we take a look at how the Whitelist Beta is shaping up one week into phase two, how Reputation Score is calculated & more info on how you can get involved in the Whitelist Beta.
Hello Pollenators!
There is a lot going on at the moment in the world of Pollen DeFi, including the Whitelist Beta, the Pangolin Superfarm, our new Twitter Spaces and much more. Sit back, relax, grab a coffee, and let us fill you in on everything Pollen DeFi.
In this edition of Pollen’s Dev Blog:
- An update on the Pollen DeFi Whitelist Beta
- A peak at how Reputation is calculated in the Pollen eco-system
- Ways to get on the Pollen DeFi Whitelist Beta
Phase 2 of the Pollen DeFi Whitelist Beta has been online in its new form for over one week now. You can see what we learned from Phase 1 of the Pollen DeFi Whitelist Beta in our previous Dev Blog.
What does the leaderboard currently look like?
Thus far, we have seen a variety of different strategies deployed by those competing with each other in the Pollen DeFi whitelist beta.
With the crypto-market experiencing a slight bounce-back from the dip it had taken recently, it has been a good time for those competing with each other on the beta. More than 50,000 $PLN has been earned by users on the platform since phase 2 began.
CaedraLL is currently leading the charge, having managed to earn more than 150 Reputation points. In practice, on mainnet, this would mean that CaedraLL is the most successful Pollenator on the platform, and would receive a sizeable amount of $PLN from delegators, in order to manage their investments for them.
Currently the three best performers all have a Reputation Score that is sitting above 200, and they are the only 3 to manage that so far.
Will anyone be able to catch the top Pollenators by the time we release the next Whitelist Beta update? Make sure you look out for our next Pollen Dev Blog to find out.
Reputation score and how it works
The goal of Pollen DeFi is to decentralise the world of asset management, and within the protocol, reputation is arguably the most important set of metrics metric in the entirety of the Pollen DeFi eco-system.
Reputation measures the ability of a Pollenator (portfolio manager) to make good investment decisions. This is a classic problem that investment funds face:
‘How can we reward portfolio/asset managers based on their performance?’
At Pollen DeFi we have been able to solve this problem, but how?
A Meritocratic Approach
Similar to reputation in any other circumstance, the score must be based on merit and prior actions. It has to be the consequence of returns awarded from virtual portfolios, and the Reputation Score must also provide an indication to the level of value a particular Pollenator has been able to previously generate (and likely be able to future generate) by adeptly managing their virtual portfolios.
In the Pollen eco-system, Reputation Score is earned by comparing Pollenator value versus the market benchmark.
The game is to beat the market. The better you are at beating the market, the better your Reputation Score is.
In the case of Pollen DeFi, the market is another Pollenator. Yield more than that Pollenator and you will receive a better Reputation Score.
Computation of Reputation Score
Reputation Scores are defined as the compounded return assuming an initial stake of 100 $PLN in each virtual portfolio. This makes score insensitive to the amount of $PLN staked. It also means that, regardless of wallet size, you will be able to better your Reputation Score and climb the leaderboard, as long as your investment decisions are sound.
Reputation is computed in the following manner:
- Pollenators are assigned a score of 100 the upon joining the platform
- The Pollenator then selects their first virtual portfolio
- Whenever the Pollenator rebalances their virtual portfolio, the realised return of that virtual portfolio since the last rebalance is compared against the market benchmark in the same period of time.
- Excess return is compounded into the most up to date Reputation Score
- Excess return is the difference between virtual portfolio return & market benchmark
- Reputation equation for Pollenator U:
where Ru(tk) is the virtual portfolio’s return, and Rb(tk) is the market benchmark return at each event of the rebalancing portfolio.
Currently, only the action of rebalancing the virtual portfolio yields the realised return, thus updating Reputation Score.
Reputation Score described above is the first metric of many that Pollen DeFi will deploy. The rationale: as Pollen aims to decentralise the investment management process, a Reputation Score can be seen as a measure of performance.
An analysis of the scientific literature shows that Reputation Score is a subjective concept, stemming from a variety of different investment styles.
Pollen’s vision is therefore to provide a variety of different metrics, such that delegators and asset pools can make informative decisions based on personal and community styles.
How can I get on the Whitelist Beta?
Initially, the beta was reserved for those that had declared very early interest in the project, and for those that participated in the Launchpool IDO.
We will soon be announcing another way that an extensive amount of the Hivemind will be able to partake in the Whitelist Beta, so keep your eyes peeled for that!
Otherwise, we reward people who attend our bi-weekly Twitter Spaces with the opportunity to take part. If this is something that is of interest to you, make sure to schedule in time to join.
Our next Twitter Space will take place Wednesday 16th February, Midday EST / 5pm UTC.
That’s all for this week’s Dev Blog.
Thank you for taking the time to read this, and make sure you are connected with Pollen DeFi on socials to stay up to date all the time. Use the social links below.
About Pollen DeFi
Pollen DeFi, is a first of its kind decentralized asset index where the community holds all the power. Decentralized finance is designed to be by the people, for the people, and Pollen DeFi is acknowledging this by building the first, truly decentralized platform for managing tokenized asset pools. The merit-based DAO provides a reputation-based governance protocol with incentives that leverage the community’s collective wisdom to curate asset pools. In this system, all users of the platform stand to benefit from the contribution of the best-performing participants.
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