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Indices

Initial Contract Amount:

The initial contract amount is set to 1000.

Index Calculation Formula:

Indext=∑i=1mtPi∗NitDivisort∗Indexinitial  (t≥1)Index_{t}=\frac{\sum_{i=1}^{m^t}P_{i}*N_{i}^t}{Divisor_{t}}*Index_{initial}\ \ (t\ge1)
Divisort=Divisort−1∗∑i=1mPi∗Nit∑k=1gPk∗Nkt−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. 1.
    Set the initial index contract amount to 1000;
  2. 2.
    Determine the index constituents;
  3. 3.
    Determine the amount of each constituent such that:
    ∑i=1mPi∗Ni=Indexinitial\sum_{i=1}^mP_{i}*N_{i}=Index_{initial}
    ​
  4. 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}
    :
    Indexinitial∗Wi=Pi∗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=MarketValuei∑MarketValuew_{i}=\frac{MarketValue_{i}}{\sum MarketValue}
      ​
    • and more.

A Market Cap Weighted Example

Initial Contract Amount: 1000.
Constituent
Market Cap
Sqrt Market Cap
Current 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=MarketValuei∑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=1000∗w1p1=1000∗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=1000∗w2p2=1000∗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=1000∗w3p3=1000∗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=1000∗w4p4=1000∗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=1000∗w5p5=1000∗0.05031.81=27.79006N_5^1=\frac{1000*w_5}{p_5}=\frac{1000*0.0503}{1.81}=27.79006
​
Constituent
Market Cap
Sqrt Market Cap
Current Price
Weight
Quantity
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=0.00903∗BTC+0.07852∗ETH+0.24755∗BNB+0.62376∗SOL+27.7901∗MATICIndex_{1}=0.00903*BTC+0.07852*ETH+0.24755*BNB+0.62376*SOL+27.7901*MATIC
​
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Last modified 1yr ago