We are kicking off our discourse discussion with the first official rebalance of the Alongside Crypto Market Index token. Below are details of the month over month changes since the index launched in January. We will be posting these changes every month looking forward to update the community of any changes made to the Index Token.
Index Description
The Alongside Crypto Market Index is a broad-based crypto market index designed to deliver market exposure to a market-cap weighted basket of 25 assets, rebalanced monthly and reconstituted quarterly on the first business day of the month. The index is rebalanced based on the methodology provided by the AMKT DAO.
Thank you, @austin. Does this also mean that the actual crypto holdings in custody with Coinbase have also been rebalanced? i.e. BTC sold and DOGE bought?
This is a really interesting point. Great subject for a governance proposal. Personal opinion is that we want to be super careful with any asset that can deviate off peg or subject holders to more risk- this is why our current methodology excludes wrapped assets or any form of derivative asset, but definitely think this could warrant more discussion! What do you think?
Definitely an interesting topic for a discussion, @austin . On the surface, having a derivative as a part of the index does seem to put a dent into stability and “safety” of the AMKT.
Thinking of the potential buyers of the index - who are generally more risk averse, if this could be said at all about crypto space - could inclusion of derivatives scare them away?
That’s a good choice in my opinion, so the index can simply earn some yield to extra in ETH, thus yield could also be used for other things, like investing all yield in some lending protocol, for more yields, which you also then could borrow some stables from to invest in other “more safe” opportunities like when protocols/blockchains have different incentives and such.
Also all stables could be converted to USDR (having now 16.91% APY, 6.91% in USDR and 10% in TNGBL), this yield is paid out daily. The TNGBL earned could later be invested in Tangible protocol, either lock the tokens as a 3,3+ NFT, this in turn pays out USDC. The USDC earned could in turn be invested into more USDR, and repeat. The TNGBL earned could also be invested into real estate, exclusive wines (according to statistics wines go up in value more than stocks, sometimes up to 30-35% per year) or gold bars thru the Tangible protocol. Bonds are also available from the protocol, which could be bought for the yield too.
This will only favor all of us holding AMKT, as passive yield is earned also, which could later be invested into other tokens. Or otherwise putting all yield for a year into a treasury which then all users holding AMPT can governance vote on what to invest this treasure in, compounding all yields to more yields all the time making the price more stable and the index will grow expansional from this, just a thought!
- could inclusion of derivatives scare them away?