📈Basic Rules of Index

This page will introduce the method cindex apply on sorting investment target and how to adjust their weight

There are many types of ETF tracking different indexes made with different thesis(such as Defi, layer1/layer2, etc.)Thus a set of rules on sorting investment target is essential to guarantee a good passive investment thesis.

For layer1/layer2 type of Index, there are simple yields generated by staking/becoming a validator of the network. On the other hand, trading volume, market cap and some other perspectives are also crucial towards the longevity/sustainability of the underlying asset.

Sorting criteria:

• 30 day average market cap >$100M

• 30 day average 24h trading volume >$10M

• Total value staked >$50M

• Time after Mainnet launch> 6 month

• Daily fee generated>$500k

• Cex listing>10

• Marketcap/variance of the trading volume<xxx

Weight adjustment:

• Underlying asset will adjust their weights according to their Marketcap/TVL in reverse order

• Underlying asset will adjust their weights according to their Marketcap/revenue generated in reverse order(benchmarking price-earnings ratio)

• The max weight of a single asset is 25%

Thus, for example, the first batch of the layer1/layer2 token fitting all the criteria above are:

• ETH

• BNB(BSC chain)

• Ftm(Fantom)

• xxx