If you’ve never heard of an index before, now is your chance! Cryptocurrency indexes present an opportunity for crypto enthusiasts like you to maximize the market once more, and to do it with one of the best platforms available: Phuture.
But first, what is an index? This is a compilation of multiple assets, or a hypothetical basket of assets. These asset prices are tracked and they determine the performance of the index. Or in other words, the calculation of index prices are based on the ratio of every asset contained in that index.
One of the major benefits of an index fund is that it eases up the stress of having to research assets to buy and also gives exposure to a wide range of assets. Investing in indexes is also termed “passive investing” as investors do not go through the rigours of finding the optimal investment.
If you’re gunning for long-term goals using passive investment options, then this is your best bet.
So what makes investing in indexes so great? For one, they mitigate the risk of being exposed to a single coin and help to spread some of that risk due to being exposed to a wide range of asset classes.
The index comes with three features:
1. Protracted trends
2. High volatility
3. High liquidity
This is why it is so attractive to both traders and investors alike. And guess what? Phuture is set to trailblaze this promising aspect of the crypto industry. Phuture is designed for investing and developing passive investment strategies based on tokens in a Web3 environment. They are a 100% decentralized protocol everyone in the market should watch out for.
What does Phuture bring to the indices investing sector?
The Phuture protocol is developed with an open design philosophy that would present users with the tools to invest in existing indices built by the community or create new ones. This open design philosophy can also be utilized for creating passive investment strategies.
With Phuture, you can create all the indices you want with ease using the Index Creator which supports a rich variety of index options e.g. dynamic weighting methodologies, automated sector tracking, etc.
It not too difficult to see the wealth of opportunities available with indices investing. Investing in indices is the bedrock of conventional asset management. As at the time of writing this article, bigshot index providers have gathered AUMs worth trillions of dollars. According to estimates, over 50% of the value in the United State stock market is held by index funds.
As crypto markets develop, there’s a fair chance that strategy allocation and assets will start meeting with conventional finance. And Phuture will be leveraging this capital flush as well as impressing users and crypto natives with its user-friendly design and infrastructure.
Again,the Phuture community will be a crucial key to the success of Phuture network as token holders are more involved in the decision-making process compared to their counterparts. With this in mind, Phuture will be supporting active participation in the governance of tokens in their custody. To top this off, Phuture will cut down opportunity costs by making the most of off-platform yield optimizers.
All of this begs the question, can a Phuture index be created by just anyone? The answer is yes. Users can create as well as launch their index with Phuture. The only criteria here is that the assets must be on the Ethereum blockchain.
And guess what? Participation in the community is just as easy. With the frequent expansion of the Phuture ecosystem, the doors of the community are open to everyone who wish to join and contribute.
The index offered by Phuture’s protocol also includes equities. Phuture extends to every ERC-20 token as long as these tokens are whitelisted. This applies for equity-oriented tokens and crypto native assets.
Let’s look at some of the mind-blowing features of Phuture.
Permissionless Index Creation
As we mentioned before, Phuture brings in an open design philosophy for putting together investment plans, supplying tools for indices creation by users, or investment in old indices.
Smart, Scalable Index Architecture
Phuture features a cool aggregated design that achieves scalability by letting single swaps rebalance a series of indices at the same time.
Phuture has a smart engine for rebalancing that calculates optimal assets for rebalancing. It also brilliantly defines appropriate weight ranges to rebalance in.
Cumulatively, the result of Phuture’s index architecture is that Phuture possesses enough capacity to support hundreds of indices while cutting down on the value leaked when swaps are rebalanced.
· Liquidity Nexus
With this feature, investors in the index can enjoy liquidity to the fullest on the Ethereum network supplying a wide range of assets and excellent execution.
Without much difficulty, Phuture separates trade execution in the minting process from the quantity of liquidity held in a fund for index.
What this does is that it makes certain of the same user experience irrespective of index size. It also eliminates the unwieldy liquidity onboarding phase for fresh indices.
What are you waiting for? Port to Phuture and leverage all they have to offer with indexes! This protocol is on a roll and they are set to dominate the market soon. You don’t want to miss out.
Phuture is launching its mainnet in Q1 of 2022, come be a part of the Phuture community and be a part of our revolutionary journey. Join us now on Telegram, Twitter, Discord, Linkedin, and Instagram to stay updated.
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Note: This article is for information purposes and not a solicitation or encouragement to financial commitment.