The NFT Index is a digital asset
index designed to track tokens’
performance within the NFT industry.
Uses market capitalization for component weights, not fixed percent, so it does not suffer underpeformance from impermanent loss.
Eliminating the need to perform countless costly transactions manually saves you time and money.
Always less volatile than more concentrated portfolios. Downside protection due to holding a wider selection of tokens.
The NFT Index is a digital asset index designed to track tokens’ performance within the NFT industry. The index is weighted based on the value of each token’s circulating supply and liquidity. The NFT Index aims to track NFT projects in Decentralized Finance that show a commitment to ongoing maintenance and development.
As part of the inclusion assessment, NFT Index considers a wide range of characteristics of the token, the project and the protocol. These criteria can be placed in four groups:
The NFTI uses a combination of root market cap and liquidity weighting to arrive at the final index weights. We believe that liquidity is an important consideration in this space and should be considered when determining portfolio allocation.
TW = 70%*RMCW + 30%*LW
TW – token weight in the $NFTI
RMCW – square root of market cap weighted allocation
LW – liquidity weighted allocation
The number of the assets is 10.
The index is maintained monthly in two phases:
The determination phase takes place during the third week of the month. It is the phase when the changes needed for the next reconstitution are determined.
Following publication of the determination phase outcome, the index composition will change to the new weights on the first working day of the following month. I.e components will be added or removed, and weights adjusted.
Any funds based on the NFT Index will be expected to execute any buy and sell transactions during the first week of the following month.
Any client can issue new NFTI Index tokens using the DeFi TokenSets protocol. To do this, he needs to initially have tokens that are included in the index and deposit them as a pledge into a smart contract to receive NFTI. This allows to reduce the spreads between the fair value of the NFTI token and its value on DEX platforms.
Any NFTI token holder can use the decentralized TokenSets protocol to receive the tokens that are included in the index, in exchange for the NFTI token.