The $PONY Index is rebalanced monthly to ensure the underlying vault strategies have the most competitive yield strategies.
Determination Phase
Component Selection
All vaults that pass the previous eligibility screens (chain, yield farming vault platform, stablecoin exposure, yield source, risk score; see Methodology) build the selection list.
Weightage
Optimization problem is solved that
maximizes a yield/capacity score (weighted geometric average) and diversification
while ensuring index risk score and index capacity are sufficient and turnover is manageable
Smallest components are removed to end up with ten constituents