- Crypto Index Fund* - A legacy of top cryptocurrencies
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 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.