DeFi Model
Designed for native DeFi investors, the "DeFi model" is a fully decentralized index standard that allows users to quickly move between crypto "narratives" and de-risk their portfolios through
Issuance, redemption, re-indexing, and re-weighting are explained below.
Token Issuance
Periodically, the market source gathers an updated list of assets, including their names and respective percentages, and subsequently transmits this list to the smart contract.
Users transfer their USDC to the Vault.
The Vault knows what asset ratio it needs to acquire in order to build an index token.
The Vault calculates the necessary asset ratios to form an index token. It then executes a transaction on Uniswap, exchanging the stablecoin for the constituent coins of the index. Users also have the option to place a limit order for acquiring the index tokens.
Once the underlying assets are acquired, the Vault creates new index tokens equal to the user's allocation. These index tokens can be bought in fractional amounts and are divisible.
Re-indexing: This term refers to removing assets present in the vault but not included in the updated list while also encompassing the acquisition of new assets not currently part of the vault but newly introduced in the asset list. Re-weighting: This term refers to periodic transactions aligning the weight of each asset with the desired weight. It is important to acknowledge that an asset's weight in the portfolio may shift due to its price and the prices of other assets in the vault, potentially deviating from the weights outlined in the market list.
Last updated
