Custom Index Vaults
Custom index Vaults will allows users to gain access to one of the most popular tools in tradition finance. Easily allowing for users to gain passive exposure to many of the best and upcoming protocols in the space.
The Indexes will be smart contract vaults that allows for users to gain exposure to a selected group of assets at pre determined proportions.
For example a Defi Blue Chip Index. It may consist of ETH, BTC, Chainlink, and Aave with proportions of 40%, 40%, 10%, and 10% respectively. Users will be able to deposit into the vaults and gain exposure to these assets at the predetermined rates.
Over time as certain tokens out perform there will begin to be an imbalance of sorts. To counteract these the vaults with be continuously rebalanced in order to maintain the correct proportions. If certain tokens are out performing at they will be sold and the return from that will be used to rebalance the others.
Chainlink oracles will be used in order to gather accurate price data on the underlying assets of the vaults.
While any asset can in theory be added to an index, liquidity considerations need to be considered. With the nature of rebalancing it is critical that the underlying assets have sufficient liquidity in order to maintain the required proportions.
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