The CMI Index is a digital asset index designed to track the performance of the crypto market. The index is equally weighted between three assets: WBTC, ETH, and USDC. CMI allows you to get the profitability of the whole crypto market by holding only one token.
The CMI Index consists of three assets:
1. Wrapped Bitcoin (WBTC) is the first ERC20 token backed 1:1 with Bitcoin.
2. Ethereum is the community-run technology powering the cryptocurrency, ether (ETH), and thousands of decentralized applications.
3. USDC is issued by regulated financial institutions, backed by fully reserved assets, redeemable on a 1:1 basis for US dollars. It's governed by the Centre - a membership-based consortium that sets technical, policy, and financial standards for stablecoins.
The determination phase takes place:
1. during the fourth week of each month
2. when the actual weight of one of the assets in the index is deviated by 10% from its target allocation. It is when the changes are needed, and the next reconstitution is determined. Allocation Determination: The index allocation is recalculated, taking into account changes in market prices.
Following publication of the determination phase outcome, the index composition will change to the target weights:
1. during the first week of the following month.
2. on the following or same day when a 10% deviation of any asset from target allocation happened.
The index consists of three assets proportional to each other. Target allocation of the index is always kept as follows: 33.33% WBTC, 33.33% ETH, 33.33% USDC. When there is a deviation of any token weight from the index target allocation to a critical value, the index will be rebalanced. Learn more about rebalancing in the Reconstitution Phase.
TW = (⅓)*IV where,
TW – token weight in the $CMI
IV – Index Value in USD
Any client can issue new CMI Index tokens using the DeFi TokenSets protocol. To do this, he needs to have tokens included in the index initially and deposit them as a pledge into a smart contract to receive CMI. This allows lowering the spread between the fair value of the CMI token and its value on DEX platforms.
Any CMI token holder can use the decentralized TokenSets protocol to receive the tokens that are included in the index in exchange for the CMI token.