DEFI Projects: PieDAO not only a system to avoid fees

Piedao pools

Since I have started to investigate in-depth about the whole DEFI (Decentralized Finance) world I have realized that the big drawback they have is the high amounts of GAS required to make transactions.

If you have for example 1 ETH and you want to diversify it in several tokens that exist within the Ethereum network you will find a fee depending on the day that can range from 25 to 100 dollars. This can come to represent almost 10% of the total you want to acquire which seems to me to be barbaric.

One of the most interesting projects I have found tries to alleviate this problem in a rather ingenious way.

Indexes

One of the services this platform offers are indexes. Basically, this platform creates tokens, called "pies", that represent the market value of a set of cryptocurrencies, in this case always related to DEFI. In this way, by buying these tokens you automatically diversify your portfolio without having to be actively watching and making many purchases and sales. There are several "Indices", each one with different risk and with different revaluation systems. I will explain a little about each of them below.

![SeparatorLEO.PNG](https://i.imgur.com/Box71Fm.png)

BCP: Balance Crypto Pie

This token provides a balanced portfolio that aims to minimize risk by proposing an exposure to DEFI projects of 33%, while the remainder is split equally between wBTC and wETH.

The DEFI projects chosen in this case are those of the DEFI++ index, which is the one that combines all DEFI-L and DEFI-S projects, depending on whether they are largecaps or small-caps. The index is built using a smartpool of Balancer (Plataforma DEFI), automatically rebalancing to maintain the set allocation as market prices fluctuate.

In this way, any user can use their ETH to buy this complete and diversified portfolio.

![SeparatorLEO.PNG](https://i.imgur.com/Box71Fm.png)

DEFI++: Defi Index Pie

Since last year, decentralized finance has been the fastest growing technology in the crypto environment, both in terms of market cap, use cases and users. They have also been responsible for the largest growth within the Ethereum network, always monopolizing the top spots in terms of "gas" spending.

The DEFI++ portfolio is composed of the Largecaps index and Smallcaps index projects with a 70/30 ratio. It is also built using the balancer smart pool to react to market changes in real time.

In this way, any user can use their ETH to buy this complete and diversified portfolio with a good group of the best DEFI projects.

DEFI-L/DEFI-S

The DEFI-L and DEFI-S indices correspond to DEFI projects with more or less marketcap. This makes the DEFI-S a riskier product, but also with a higher market growth potential.

![SeparatorLEO.PNG](https://i.imgur.com/Box71Fm.png)

YPIE: Yearn Finance Ecosystem Pie

The DEFI-L and DEFI-S indices correspond to DEFI projects with more or less marketcap. This makes the DEFI-S a riskier product, but also with a higher market growth potential.

Yearn Finance Ecosystem Pie provides full exposure to the Yearn network ecosystem. This pie is special since it is not limited to the purchase of a token and its inclusion in a portfolio, but takes advantage of other strategies such as LENDING, STAKING, etc. Services provided from the Yearn ecosystem.

![SeparatorLEO.PNG](https://i.imgur.com/Box71Fm.png)

OVENS

Another interesting service offered by the PIEDAO platform are the ovens. The ovens are groups of users who want to buy any of the tokens offered on the platform (BCP, DEFI, etc.).

![image.png](https://files.peakd.com/file/peakd-hive/yuriitonkov/GafBM7oH-image.png)

In order to have lower gas quotas, the system forms 10ETH purchase packages. Due to the way these pools work, a 1ETH transaction costs the same GAS as a 10ETH transaction. Therefore, by joining users in this way, it is possible to divide the fees among as many users as participate in the PIE.

![SeparatorLEO.PNG](https://i.imgur.com/Box71Fm.png)

FARMS

In addition to these great opportunities, PieDAO also offers liquidity pools that provide DOGH, the platform's own token. This token, besides having a market value, can be used to participate in the platform's governance decisions.

![image.png](https://files.peakd.com/file/peakd-hive/yuriitonkov/4CztPEHN-image.png)

CONCLUSIONS

Personally I find the services provided by the PieDAO platform very interesting. When I started using my ETH wallet as the main depository for my tokens, I saw that it was a problem to try to have a diversified portfolio without losing a lot of money in commissions.

With this idea I have not only managed to diversify it, but also to gain participation in the multiple DEFIs projects that have been created. The idea of the governance token is also very interesting as it makes the users participate in the future of the platform, this is how the YPIE token was created for example.

I hope you found it interesting.

![SeparatorLEO.PNG](https://i.imgur.com/Box71Fm.png)

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