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)

BED vs S&P500 - YTD and 1 Year Performance

• BED index is down 30.34% YTD vs the S&P 500 which is only down 10%
• BED index is up only 5.61% in the past 1 Year vs the S&P 500 which is up 10% since the past 1 year.

Why might someone go Bankless?

• Someone might go Bankless if they want exposure to the crypto and Defi industry without holding individual tokens, but rather a they want a solution like an ETF which manages the holding underneath for a fee and has a wide exposure to the industry as a whole without.
• Also, it is a solution for people who don't want to pay high fees on networks like ethereum.

Outline the BED index strategy deployed by Bankless DAO

• The BED index is composed of 3 main assets:

  • Wrapped Bitcoin - 33%
  • Wrapped Ethereum - 33%
  • Defi Tokens - 33% like Uniswap, AAVE, Maker, Synthetix, Compound

• This index strategy is managed by BED DAO and Index Coop

  • They re-balance the index on First Friday of every month.
  • There is also a fee associated with this management of index, which amount to a total of 0.57% (0.12% Bankless, 0.35% Index Coop, 0.10% DFP). [1]

• Here is what the composition looked like at launch [1]

Use this analysis to suggest why or why not someone should consider going Bankless.

• I would not suggest anyone use Bankless index for now, there is too much complexity like setting up a wallet, metamask, risks and very less or even lesser returns as compared to a S&P500 index fund that it is just not worth the risk.
• Plus the S&P500 can be stored in an account that is tax friendly and you would not incur tax on your gains, whereas for this index you would be taxed.

[1] https://www.bankless.community/bed-index