Indices

Initial Contract Amount:

The initial contract amount is set to 1000.

Index Calculation Formula:

Indext=āˆ‘i=1mtPiāˆ—NitDivisortāˆ—IndexinitialĀ Ā (tā‰„1)Index_{t}=\frac{\sum_{i=1}^{m^t}P_{i}*N_{i}^t}{Divisor_{t}}*Index_{initial}\ \ (t\ge1)
Divisort=Divisortāˆ’1āˆ—āˆ‘i=1mPiāˆ—Nitāˆ‘k=1gPkāˆ—Nktāˆ’1Divisor_{t}=Divisor_{t-1}*\frac{\sum_{i=1}^{m}P_{i}*N_{i}^t}{\sum_{k=1}^{g}P_{k}*N_{k}^{t-1}}

where:

  • IndextIndex_{t}: Index of the ttht^{th}period

  • PiP_{i}: The current price of the ithi^{th}constituent

  • NitN_{i}^t: At time tt, the amount of the ithi^{th}constituent in the index

  • IndexinitialIndex_{initial}: Initial contract amount of the index, IndexinitialIndex_{initial}= 10000

  • Divisort:Divisor_{t}:A stabilizer that ensures a stable and continuous change of the index and eliminates the impact of index rebalancing. Divisor1=IndexinitialDivisor_{1}=Index_{initial}

Index Calculation Process:

  1. Set the initial index contract amount to 1000;

  2. Determine the index constituents;

  3. Determine the amount of each constituent such that: āˆ‘i=1mPiāˆ—Ni=Indexinitial\sum_{i=1}^mP_{i}*N_{i}=Index_{initial}

  4. Since the price of each token PiP_{i} is already known, we need to determine the weight of each token WiW_{i} to calculate NiN_{i}: Indexinitialāˆ—Wi=Piāˆ—NiIndex_{initial}*W_{i}=P{i}*N{i}. There are various methods to determine WiW_{i}

    • Equal weights: 1m\frac{1}{m}

    • Market cap weighted: wi=MarketValueiāˆ‘MarketValuew_{i}=\frac{MarketValue_{i}}{\sum MarketValue}

    • and more.

A Market Cap Weighted Example

Initial Contract Amount: 1000.

ConstituentMarket CapSqrt Market CapCurrent Price

BTC

884,619,116,312

940542.0

46633.22

ETH

445,105,069,241

667162.0

3805.21

BNB

87,541,528,702

295874.2

535.24

SOL

46,972,431,831

216731.2

155.67

MATIC

12,623,182,765

112353.0

1.81

wi=MarketValueiāˆ‘MarketValuew_{i}=\frac{\sqrt{MarketValue_{i}} }{\sum MarketValue}

BTC:

w1=940542940542+667162+295874.2+216731.2+112353=9405422232662.4=0.4213w_{1}=\frac{940542}{940542+667162+295874.2+216731.2+112353}=\frac{940542}{2232662.4}=0.4213

N11=1000āˆ—w1p1=1000āˆ—0.421346633.22=0.00903N_1^1=\frac{1000*w_1}{p_1}=\frac{1000*0.4213}{46633.22}=0.00903

ETH:

w2=6671622232662.4=0.2988w_{2}=\frac{667162}{2232662.4}=0.2988

N21=1000āˆ—w2p2=1000āˆ—0.29883805.21=0.07852N_2^1=\frac{1000*w_2}{p_2}=\frac{1000*0.2988}{3805.21}=0.07852

BNB:

w3=6671622232662.4=0.1325w_{3}=\frac{667162}{2232662.4}=0.1325

N31=1000āˆ—w3p3=1000āˆ—0.1325535.24=0.24755N_3^1=\frac{1000*w_3}{p_3}=\frac{1000*0.1325}{535.24}=0.24755

SOL:

w4=216731.22232662.4=0.0971w_{4}=\frac{216731.2}{2232662.4}=0.0971

N41=1000āˆ—w4p4=1000āˆ—0.0971155.67=0.62375N_4^1=\frac{1000*w_4}{p_4}=\frac{1000*0.0971}{155.67}=0.62375

MATIC:

w5=1123532232662.4=0.0503w_{5}=\frac{112353}{2232662.4}=0.0503

N51=1000āˆ—w5p5=1000āˆ—0.05031.81=27.79006N_5^1=\frac{1000*w_5}{p_5}=\frac{1000*0.0503}{1.81}=27.79006

ConstituentMarket CapSqrt Market CapCurrent Price WeightQuantity

BTC

884,619,116,312

940542.0

46633.22

0.4213

0.00903

ETH

445,105,069,241

667162.0

3805.21

0.2988

0.07852

BNB

87,541,528,702

295874.2

535.24

0.1325

0.24755

SOL

46,972,431,831

216731.2

155.67

0.0971

0.62376

MATIC

12,623,182,765

112353.0

1.81

0.0503

27.7901

Index Calculation: Index1=0.00903āˆ—BTC+0.07852āˆ—ETH+0.24755āˆ—BNB+0.62376āˆ—SOL+27.7901āˆ—MATICIndex_{1}=0.00903*BTC+0.07852*ETH+0.24755*BNB+0.62376*SOL+27.7901*MATIC

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