We built a crypto portfolio protocol. We noticed that current crypto portfolio protocols tend to be quite complex, which makes a lot of sense due to high L1 gas costs, where a complex design that saves gas pays off. The downside of this approach is that it makes it hard to understand the inner workings of the protocol and know what risks you are exposed to as a user. Polygon’s L2 low gas fees enabled us to make a gas-intensive protocol that just wraps all the necessary transactions that compose a portfolio into one. For example, if you want to buy a portfolio composed of 10 tokens, instead of you having to approve 10 transactions on your wallet, the contract wraps it into a single wallet transaction and buys under the hood the individual assets in the amounts specified. This is a much simpler experience for the end user to understand, which in turn makes it easier to trust. We also build the immutable portfolios, so there is no risk from a change in portfolio allocation followed by a rug pool from an ill intentioned portfolio creator. The only way a portfolio allocation can change is with its owner's explicit permission. Being an easy to trust portfolio protocol means new social use cases, enabling people to share their portfolios with friends/family and influencers to share with their audiences. and share it with friends, only needing to trust the initial allocation, as portfolios are immutable. By turning all portfolios into NFT, we enable composability and simplify holding, managing and transferring assets for the portfolio holder.

IndexPool showcase

How it's made

We built on Polygon to leverage low gas fees. We wrap all portfolio swaps into one transaction, which would be prohibitive to do in L1 given the gas costs. When a portfolio is purchased, the portfolio contract uses QuickSwap (Uniswap V2) to make the necessary swaps, then mints an NFT and stores the purchased tokens, directly associating them to the NFT. This architecture was chosen in order to make the portfolio investing experience as easy to understand as possible, as well as making it easy to trust by assuring investors exactly how their money is being invested. This gives investors the peace of mind that the tokens that compose the portfolio are associated with their NFT, and also allows composability and easy transfer of ownership. From the portfolio investor’s perspective, there are three possible interactions: deposit (from MATIC), withdrawing (to MATIC), and transferring underlying tokens (ERC20) to wallet. From the portfolio creator’s perspective, there is only one interaction: creating a portfolio and attributing its initial allocation.

Technologies used