Pony Finance Launches New Omnichain Stablecoin Yield Index With Scalara Methodology
The PONY Index holds vault strategies from Fantom, Polygon, and Avalanche & currently has a yield in the order of 7–10% APY
Today, Pony Finance, a ‘laser’ DAO formed with the singular purpose of supporting an innovative DeFi product to counter the bear market, has launched the PONY Index token ($PONY) — a composite of low-risk, multi-chain, stablecoin yield bearing vault tokens.
Short for ‘Passive Omnichain Net Yield,’ the PONY Index is published by the methodologists at Scalara, the team behind the DeFi Pulse Index (DPI) and other DeFi-native indices. At launch, the PONY Index holds vault strategies from the Fantom, Polygon, and Avalanche ecosystems and currently has a yield in the order of 7–10% APY.
The ERC-20 token representation $PONY is now available on Pony Finance and Uniswap V3 with a liquidity mining program on xToken terminal.
Published by Scalara, Powered by DeFi’s Best
$PONY has launched in partnership with Beefy Finance, DeFi Pulse, Kuiper Protocol, and Multichain, and the PONY Index is published by Scalara.
To determine the selection of stablecoin yield farming vaults, Scalara has applied its filtering criteria and rigorous screening of each chain, farming platform, stablecoin exposure, yield source, and risk score as provided by Beefy Finance’s ‘Safety Score.’
The resulting composition is an index of proven, fully-collateralized, USD-pegged stablecoin yield sources that enables $PONY token holders to earn yield without impermanent loss or risk to their principal.
“We aim for the PONY Index to simplify stablecoin yield farming across multiple chains and bring attractive yields back to Ethereum,” explains Christoph Gackstatter, Scalara indices product lead. “With the PONY token implementation, anyone from retail investors to DAO treasury managers can gain one-token access to multiple yield opportunities while avoiding the costly and time consuming tasks of frequent claiming and reinvesting of distributions or bridging assets.”
Permissionless & Fully Transparent
Simplifying a complex and costly strategy into a one-token solution isn’t the only benefit of $PONY. Being implemented as an on-chain product, $PONY allows users to benefit from full permissionless transparency regarding their investment. At all times users can verify on-chain PONY’s constituent vaults and their respective exposures.
Now Available on Uniswap v3
The PONY Index token representation $PONY is now available to mint and or purchase via the Uniswap V3 pool here.
In addition, $PONY is available to mint by following the directions on the Pony Finance PONY minting guide.
Liquidity Mining Starts Now
To celebrate the launch, Pony Finance has kicked off a liquidity mining program to enable PONY token holders to earn rewards in $PNYD, the utility token of the Pony Finance DAO.
The liquidity mining program provides concentrated liquidity for PONY over the range from approximately USDC 1.06 to USDC 1.16 (i.e. -3.5%/+5.5% around PONY’s net asset value of USDC 1.10 at inception). The rewards pool for the program is 10% of the total supply of $PNYD over 60 days.
Program Begins: June 27, 2022 at 4pm UTC
Program Ends: August 22, 2022 at 3:59pm UTC
Token Deposited: $PONY/USDC Uniswap v3 LP token
Token Received: $PNYD
Amount: 100m PNYD tokens
Liquidity Providers earn trading fees from the secondary exchange whenever swaps from $PONY to USDC, or vice versa, are made. The trading fees are set at 0.05% per trade. On top of earning trading fees, Liquidity Providers are rewarded with PONYDAO tokens ($PNYD).
$PNYD rewards are distributed over time to Liquidity Providers. $PNYD rewards earned by Liquidity Providers will have NO vesting period and the rewards can be claimed and transferred to the Liquidity Provider’s wallet after claiming.
To participate in the program, visit the PONY/USDC pool on xToken.
Watch the Pony Finance Launch Event
About Pony Finance
$PONY is a single, interest-bearing token that tracks the Passive Omni-chain Net Yield Index, the PONY Index. The index was designed by DeFi Pulse’s Scalara to aggregate attractive yields across DeFi and accumulate in value. Free from impermanent loss, and published by leading index methodologists, $PONY delivers diversified exposure to high-quality stablecoin yields from leading vault providers across several blockchains.
Pony Finance earns streaming fees from $PONY Index. These fees accrue to the DAO treasury and which is governed by $PNYD token holders.
PONY has launched in partnership with Beefy Finance, DeFi Pulse, Kuiper, Multichain, and Scalara. $PONY is available on PonyFinance.xyz.
