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Pony Finance Overview
$PONY, the Passive Omnichain Net Yield index, is a single token designed to bring attractive stablecoin yields from multiple chains back to Ethereum. Free from impermanent loss, rigorously screened, and maintained by leading index methodologists (Scalara, a division of DeFi Pulse), PONY delivers diversified exposure to high-quality stable coin yields from multiple vault providers across many blockchains.
Pony Finance is a DAO formed specifically to support the $PONY index. 100% of the fees earned by the index accrue to the DAO treasury.
Stable-coins power DeFi. Because they are principal means of exchange across Layer-1 Blockchains, they are usually the highest volume and highest earning liquidity pools on most decentralised exchanges. This trading volume, combined with the interest on stable-coin borrowing and lending is the primary source of yield in DeFi.
DeFi users who want to manage exposure to stable coin yields face three major obstacles.
- 1.Stable coin yields are highly variable across chains
- 2.Vault strategies can be difficult to navigate
- 3.Lack of transparent safety ratings for different pools
The token can also be minted directly by following our guide here. We recommend that users only mint tokens if they are minting a large quantity of tokens due to high layer-1 gas costs on ethereum. Users who wish to mint directly must manually collect and bridge all of the vault tokens in the composite index.
There are always risks when investing in decentralised finance. While the methodology behind the $PONY token has been carefully reviewed and tested, that does not mean that risks do not exist. These are the primary three smart contract risks users should be aware of:
- 1.Bridge Contracts
- 2.Vault Contracts
- 3.Kuiper ERC20 Basket Contract
All three types of contracts contain some smart contract risk. The $PONY methodology rigorously selects for vaults and bridges with established track records, however some tail-risk will always exist. Please only invest amounts that you are comfortable risking.