Thread by @King_____Kunta

$KACY, $aHype, 𝒂𝒏𝒅 𝑻𝒉𝒆 #Avalanche 𝑺𝒐𝒄𝒊𝒂𝒍 𝑰𝒏𝒅𝒆𝒙 𝑴𝒆𝒕𝒂-𝑮𝒂𝒎𝒆

The release of @dao_kassandra ’s $aHype, powered by @ShineDAO_, marks an evolution in the #AVAX ecosystem that dares to ask an important question in #DeFi for the first time.

🧵

"What are the ways to choose weights in a portfolio and decide the logic to vary them continually for allocating bigger shares to best performing coins in #Avalanche , other than Market Capitalization❓"

𝑊ℎ𝑒𝑟𝑒 𝑑𝑜𝑒𝑠 𝑡ℎ𝑖𝑠 𝑙𝑒𝑎𝑑 𝑢𝑠?

First off, Kassandra is an audacious project to delegate money management in a decentralized, efficient, and customizable way, working as a marketplace for tokenized and data-driven investment strategies.

Give them a follow at @dao_kassandra if you haven't already. 🔺

🧠
Kickstarting @dao_kassandra's $aHype was the idea to measure the community strength of each cryptocurrency to better choose projects with a high probability of success and appreciation - using 𝘀𝗼𝗰𝗶𝗮𝗹 𝗱𝗮𝘁𝗮 instead of market cap to allocate capital more efficiently.

𝑊ℎ𝑎𝑡 𝑖𝑠 𝑡ℎ𝑒 𝐴𝑣𝑎𝑙𝑎𝑛𝑐ℎ𝑒 𝑆𝑜𝑐𝑖𝑎𝑙 𝐼𝑛𝑑𝑒𝑥? 🤔

The #Avalanche Social Index ($𝗮𝗛𝗬𝗣𝗘) is a self-managed portfolio that tracks the most popular tokens on Avalanche.

$aHype is an ARC20 token representing a fraction in an ever-changing and dynamic portfolio that, with the help of social data company #Heimdall and first-party oracle solution #API3, constantly allocates money towards the most outstanding communities on the Avalanche ecosystem.

𝑊ℎ𝑎𝑡'𝑠 𝑡ℎ𝑒 𝐺𝑜𝑎𝑙 𝑜𝑓 𝑡ℎ𝑒 𝐴𝑣𝑎𝑙𝑎𝑛𝑐ℎ𝑒 𝑆𝑜𝑐𝑖𝑎𝑙 𝐼𝑛𝑑𝑒𝑥?

The primary goal of the index is to offer exposure to the most popular #Avalanche cryptocurrencies in a simple and easy way: the investor just needs to acquire $aHype. 💰

kassandrafoundation.medium.com/avalanche-soci…

By holding $aHYPE, you will get exposure to $AVAX, $JOE, $PNG, $QI, $XAVA, $CRA, and $KACY, with allocations guided by their respective community's social strength. 💪

Here's how the allocation looks at present:

𝗧𝗵𝗲 𝗿𝗲𝗮𝗹 𝘄𝗼𝗿𝗹𝗱 𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗼𝗿: 𝗔𝗣𝗜𝟯 🔗

#API3 is the leading first-party oracle solution making real-world data accessible by smart contracts. With Airnode, API data is queried from blockchains without using specialist node-operating middlemen.

𝐵𝑢𝑡 ℎ𝑜𝑤 𝑡𝑜 𝑚𝑒𝑎𝑠𝑢𝑟𝑒 𝑐𝑟𝑦𝑝𝑡𝑜𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦 𝑐𝑜𝑚𝑚𝑢𝑛𝑖𝑡𝑖𝑒𝑠?

Enter 𝑻𝒉𝒆 𝑺𝒐𝒄𝒊𝒂𝒍 𝑺𝒄𝒐𝒓𝒆. 🗣️

Using this metric, algorithms evaluate all the talk and hustle on Twitter, giving more relevance to important users, and score each user according to their importance in the community.

The social listening tool being used here is 𝑯𝒆𝒊𝒎𝒅𝒂𝒍𝒍.

heimdall.land/about

𝗧𝗵𝗲 𝘀𝗼𝗰𝗶𝗮𝗹 𝗱𝗮𝘁𝗮 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝗿: 𝗛𝗲𝗶𝗺𝗱𝗮𝗹𝗹 👂

#Heimdall is a social data company for cryptocurrency using data from Twitter, Google search ranking-inspired algorithms, and #Airnode to measure how socially strong communities are.

medium.com/heimdall-resea…

𝐶𝑜𝑜𝑙 𝑠𝑡𝑢𝑓𝑓, 𝑏𝑢𝑡 𝑑𝑜𝑒𝑠 𝑡ℎ𝑖𝑠 𝑎𝑐𝑡𝑢𝑎𝑙𝑙𝑦 𝑤𝑜𝑟𝑘?

Let's see some #facts 📊

As seen below, the score moves with the price but smoother. While a market cap strategy would sell or buy in lows and highs, the social strategy follows the community growth and buys smoothly. Sudden price drops won't trigger large sells as the social score maintains its growth.

Now, in the below case, the social score is in a downtrend when the price begins to drop. The social score allows buying at lower prices, exactly what a price-based strategy does not offer.

The full explanation of these graphs along with backtesting proofs can be found in the article below.

kassandrafoundation.medium.com/understanding-…

𝑆𝑜 𝑤ℎ𝑎𝑡'𝑠 𝑡ℎ𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑝𝑜𝑟𝑡𝑓𝑜𝑙𝑖𝑜𝑠 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑢𝑠𝑖𝑛𝑔 𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝 𝑎𝑛𝑑 𝑡ℎ𝑜𝑠𝑒 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑆𝑜𝑐𝑖𝑎𝑙 𝑆𝑐𝑜𝑟𝑒?

In the graph attached below, we see that the social index portfolio is slightly more volatile, but the mean return is much more expressive.

Two major factors explain the above portfolio performances:

👇

A) 🏇

The Social Index portfolio begins allocating or deallocating much sooner than the Market Cap Index.

B) 🎢

There is opportunity for a coin to overpass other coins to get a bigger portfolio share (something that constraints of market capitalization strategies may not allow).

Further backtests to prove the advantages of #SocialInvesting and conclusive results therein can be found in this article by the Kassandra team below. 📈

kassandrafoundation.medium.com/backtesting-th…

From the #facts above, it's clear that the Social Score portfolio is a worthy investment idea. Not implying this can always outperform other portfolios, it sure can take advantage of some coins having high probability of going #ToTheMoon. 🚀

▶️

Here is what we know about $aHype and $Kacy according to Kassandra team member @AkademiaHash in a recent interview with @venture_node:

Overall, $aHype represents a new paradigm for data-driven portfolio asset allocation in crypto, the success of which will provide a true alternative that people can rely on in this rapidly-evolving digital age.

💸 Invest in the #AvalancheSocialIndex here: kassandra.finance/products/ahype

Out of all the up-and-coming DeFi projects launching on #AVAX, the King(👑,👑) surely trusts $aHype with a lion's share of his wealth.

Alexa, play King Kunta by Kendrick Lamar.