#6.To Be Bankless or not to be ?

Why might someone go Bankless? Outline the BED index strategy deployed by Bankless DAO. Show how the BED index strategy has performed over time compared to a more traditional investment route (such as sticking your money into the S&P 500). Use this analysis to suggest why or why not someone should consider going Bankless. BED Index Strategy: https://www.bankless.community/bed-index BED Index Token Address: 0x2aF1dF3AB0ab157e1E2Ad8F88A7D04fbea0c7dc6

The Bankless DeFi Innovation Index

The Bankless DeFi Innovation Index is a simple composite index launched by the Index Cooperative. The index focuses on high growth, early stage DeFi projects which are not yet considered “blue chip”. GMI produces an optimal weighting via the use of a combination of square-root market cap, relative secondary market liquidity, and relative token dilution/emission scoring.

BED Index Strategy Performance

To check whether investing in the BED index has been more profitable than in parallel markets, we use a certain index and compare the rate of price changes between the two. (In the last three months)

First we get the price changes of S&P index from the internal FlipsideCrypto databases (Terra.oracle_prices => symbol:'mSPY') .

mSPY is a token for Mirrored SPDR S&P 500

Then we examine the price changes of BED INDEX (GMI) in the same period. we just checked the price of the GMI symbol.

The result of these two diagrams is drawn below:

Comparing The Performance

To evaluate the performance of these two indices, we consider '2022-01-20' as a basis and measure the changes of each day from the base day onwards.

Then we changed the basis of comparison and considered the beginning of February as the basis.

The result is shown in the following diagrams:

To Be Bankless or Not to Be?

Considering the above charts and considering that on the base day(2022-01-20 or 2022-02-01), we could invest in both the first option S&P, and the second option *BED, it seems that in this short period of time, investing in S&P 500 has been more profitable.