Summary: A new index to take what we have seen from the last 10m and create a single, performant and most importantly representative retail friendly index, which bases allocations between BTC, ETH and tokens.
Crypto 5 (CC5)
The concept for the index is simple and uses some key observations.
- CC10 and defi5 had large overlap
- More concentrated assets performed better than more assets
- The index assets were outperformed by ETH.
To that am proposing a sqrt marketcap which takes all assets including ETH and wbtc and the top tokens, creates a single asset, such that we can pool the TVL, liquidity and protocol interaction for all the last 3 into 1 new index.
Governance will be handled by Indexed Finance’s existing framework including the forums and Discord.
The Sigma committee will add or remove tokens from the index or alternate list regularly based on community feedback. Examples of changes may be adding new tokens if the alternate list is in danger of being emptied or adding or removing tokens from the index due to material changes in tokenomics or project direction. Community members can propose adding or removing a token from the active index or the alternate list at any time.
Further the community and sigma can update the strategies used / parameters, to increase how smart the index is by altering the scoring contract’s implementation.
Initial value of CC5
We will target an initial price of $100 for the CC5 token. During the bootstrapping phase, 100 tokens will be funded by pr0 to reach a total value of $10000 (or $100 per token). Once CC5 reaches its target value, the pool will be deployed giving anyone the ability to mint new tokens.
The index has the following criteria for inclusion:
The token has a market cap from $20 million (as calculated by a rolling 14-day TWAP on Uniswap).
There is at least $500,000 of liquidity for the token on Uniswap/Sushiswap.
No major vulnerabilities have been discovered in the token contract.
The token’s supply can not be arbitrarily inflated or deflated maliciously.
The control model should be considered if the supply can be modified through governance decisions.
The token does not have transfer fees or other non-standard balance updates.
The token meets the requirements of the ERC20 standard.
Boolean return values are not required.
The token is one of:
Protocol token for an Ethereum-based project.
Governance token for a DeFi project.
Wrapper token for a blockchain’s native currency.