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July 2022 Rebalance PONY Index

Scalara announces the results of the July 2022 rebalance of the Passive Omnichain Net Yield (PONY) Index. This is the first rebalancing of the PONY Index after its inception in the beginning of July. PONY Index is implemented as a single token by Pony Finance.

The index is a basket of auto-compounding stablecoin vaults from multiple blockchains. The vaults are selected and weighted by the rules-based methodology‘s broad range of quantitative and qualitative criteria. The result is an index that grows in value based on its underlying stablecoin vaults while offering full on-chain transparency.

Since inception PONY Index’s net asset value grew from $1.10 to $1.1074.

PONY Index rebalance weights

Results of July 2022 rebalancing of PONY Index.
Results of July 2022 rebalancing of PONY Index.

Rebalance Summary

The above index weight factors and weights were calculated using vault prices and other input data as of August 8, 2022.

At the July 2022 index rebalance, four vaults are added while three are removed. As a result, PONY Index will hold vaults from Optimism (51.4%), Polygon (35.5%), and Avalanche (13.1%). The rebalancing implies a one-way turnover of 68%. Beefy remains the sole yield farming platform used and all employed strategies are stablecoin liquidity pools without impermanent loss. sUSD, Synthetix’ overcollateralized stablecoin, is added to the list of eligible stablecoins.

At time of weightfactor calculation the new index composition represented a 10% spot APY, compared to 6.7% based on the previous composition.

Scalara is dedicated to creating and maintaining indices for a decentralized world.

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