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Overview of Crypdex

Note: Crypdex is not yet live.

Crypdex is an innovative index token protocol designed to lock in a basket of tokens and issue a corresponding index token. This index token represents a diversified set of assets, actively balanced by a fund manager on a regular basis.

Why should you use Crypdex?​

  • Diversified Exposure: Gain exposure to a diversified set of tokens through a single index token.
  • Hassle-Free Management: Add liquidity once and let the manager handle the ongoing rebalancing of the index.
  • Capital Efficiency: Enjoy the benefits of no over-collateralization, making your investments more efficient.
  • No Liquidations: Unlike other protocols, Crypdex does not require liquidations, ensuring stability.

Rebalancing​

Each index deployed on Crypdex is managed by a dedicated manager, responsible for rebalancing the portfolio at regular intervals. This manager could be an individual or a group, such as a DAO. When rebalancing is necessary, an auction process is initiated to sell and buy the required tokens.

Fees​

The fund manager charges a fee for rebalancing the portfolio. This fee is collected by diluting the existing basket of tokens and issuing new index tokens to the manager.