* Crypto Index Fund *

Ideas Bank XIO Accelerator - Ideas Competition
1
  • Crypto Index Fund* - A legacy of top cryptocurrencies

Summary Description

The crypto market is so volatile, for someone who is new into the crypto world and want to invest, the selection of a potential asset is a big challenge, traditional stock market investors wants a less volatile asset to invest in.

I’m introducing an idea of a crypto backed index fund. the fund made up of top 5 cryptocurrencies. The value of this fund derived from all of the 5 included cryptocurrencies which makes this fund less volatile and attractive for the potential investors.

We need to normalize the value of each of the 5 tokens involved. The scale of each coin should be same (for example may be between 0 and 1) to keep the same impact of each cryptocurrency on the index fund price.

Which metric will your synth track?
The real-time value of cryptocurrencies via an oracle

How will you get data for your metric
Chainlink or uniswap TWAP oracle

What collateral would you use for this synthetic
We can have two approaches here
1.Index fund cryptocurrencies as a collateral
2. Use USDC for the stability
(I want a community discussion here)

Describe how you would create this synthetic
Using UMA protocol & uniswap or chainlink price oracle, need some development help as well.

Marketing
Marketing via simple and beautiful website. Informative content includes animations and videos that illustrate the use case for sBIG5. In the very next quarter we’ll develop a separate token for the complete Decentralized Autonomous Organization (DAO) to manage and decide which currencies to involve in the index fund and the future of sBIG5 index fund.

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There are a bunch of similar products out there you may want to check out. Be aware that my including them on this list does not amount to endorsement :slight_smile:

  • Lots of stuff on indexed.finance
  • CRYPTO20 tracking the top 20 cryptocurrencies by market cap
  • TCAP tracking “total” market cap of the crypto space – not sure how they do this
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Yeah that’s the main problem with this idea is that there’s a ton of competition - but I guess that also means there’s a market if you’re able to create a unique product

1 Like
4

Wow that’s amazing to see huge potential competitors, though every index fund is unique in the way how it manage the funds

It’s not a traditional index fund where you need a rebalancing function, this project is just use to reflect the cumulative prices of top crypto market leaders.