Index Coop Governance Mulls Creation of a Polygon 10 Index (P10)

Index Coop (INDEX), a community-driven, decentralized, and autonomous asset manager could soon launch a Polygon (MATIC) based index fund that would track the price of the top 10 performing projects built on Polygon.

Introducing the Polygon 10 Index

The proposal was floated by Asif Khan and aims to establish a partnership between the Polygon Foundation and the Index Cooperative to launch the Polygon 10 Index (P10).

As mentioned earlier, the index would comprise of a total of 10 best performing tokens in the Polygon ecosystem based on weighted market cap.

In essence, P10 seeks to give investors exposure to Polygon ecosystem blue-chips.

Should the proposal for the creation of P10 get approved by the Index Coop governance, its launch would mark the first scaling solution-focused product from Index Coop.

Criteria for Token Inclusion

Among other conditions, some of the requirements the tokens need to fulfil include organic network activity or usage, more than 10 million MATIC of circulating market cap, ample Polygon DEX liquidity, and at least 2 months of history of operation of the protocol.

In addition, the protocol’s respective tokens must have at least 2 months of price and liquidity history, a protocol-wide independent security audit, and, of course, they must be available on the Polygon blockchain.

Notably, P10’s methodology will include a 20% weight cap for any one project to ensure the index provides diversified exposure.

The following token composition was proposed to the Index Coop governance with Telcoin’s TEL token leading the pack with a 20% allocation. TEL is followed Aavegotchi with 19.01% and Polygon-based DEX Quickswap’s QUICK token at 13.4%, respectively.

(Source: Index Coop)

At the time of writing, the proposal seems to have attracted overall positive feedback from the Index Coop community with the vast majority of users supporting the creation of the P10 Index.

Today, Polygon – formerly known as Matic Network – is inarguably the most widely adopted Ethereum scaling solution in the crypto industry, handling approximately 5,400,000 daily transactions and having more than 400,000 daily active addresses.

Polygon’s growth becomes all the more remarkable considering it launched its mainnet a mere 13 months ago in June 2020.

Related posts:

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / / /

Index Coop to include BadgerDAO in DPI DeFi index from August

BADGER, the governance token of Ethereum-powered Bitcoin yield protocol, BadgerDAO, will be included in Index Coop’s DeFiPulse Index (DPI) token from August.

Index Coop announced the news on June 26, noting BADGER’s inclusion would be pushed back by one month due to prioritizing other upgrades.

The DPI token is a market cap-weighted index spanning the 10-most popular Ethereum-based DeFi tokens listed on decentralized finance data aggregator, DeFiPulse. 

The DPI index token rebalances on the first day of every month, adjusting allocations according to supply and price data provided by CoinGecko. Tokens will not be allocated a weighting higher than 25% during rebalancing.

As of this writing, UNI has the largest allocation in the DPI Index with roughly 26.5%, followed by AAVE with 18.4%, MKR with 13.5%, and COMP with 9.3%.

SUSHI, YFI, and SNX each have allocations of between 7% and 8.6%, while LRC, REN, KNC, and BAL are weighted between 1.2% and 2.4%. CREAM, FARM, and MTA represent less than 1% of the index each.

The index excludes wrapped tokens, synthetic assets, tokenized derived, tokens that are tied to physical assets, and tokens that represent ownership claims to other tokens.

Related: Overexposed: DeFi indexes aren’t as diversified as you think

DPI has shed nearly two-thirds of its value over roughly six weeks, tanking from a May 12 all-time high of $656.49 to last change hands for $234.

Despite suffering a heavy drawdown amid the recent crypto market crash, DPI is still up more than 300% from its November 2020 low of $57.20.