Introducing DOMANI DAO's Avalanche Blue Chip Index ($XAVABC)
Introduction
Romans, we are incredibly excited to announce that the Avalanche Blue Chip Index will be launching as of today after the approval of the first-ever DOMANI DAO proposal. As mentioned in the proposal, the idea behind the Avalanche Blue Chip index ($XAVABC) is to provide investors access to the top blue-chip tokens in the Avalanche ecosystem. The creation of this flagship fund enables the tracking of the Avalanche ecosystem, creating a benchmark for the entire community. The index is a capitalization-weighted basket that gives exposure to a variety of projects with a single token and investment.
Index Composition
The composition of the index is based on the top 10 tokens within the Avalanche Ecosystem and will be following a market-capitalization weighting, which will be actively rebalanced monthly to properly track the returns of the Avalanche Ecosystem. The exact composition of the index for the month of March 2022 can be seen below:
Joe - 30.2%
Crabada - 13.3%
Avalaunch - 20.4%
BENQI - 12.8%
Pangolin - 4.2%
Elk Finance - 2.1%
Treasure Under the Sea - 1.8%
Blizz Finance - 1.1%
Kalao - 1.1%
Platypus Finance - 13%
How to purchase $XAVABC on DEX?
The $XAVABC can simply be purchased on Trader Joe using $AVAX or a stablecoin.
Here: https://traderjoexyz.com/trade?outputCurrency=0x69afdBA5A7fec26bA2f0A3f42962b53Ec5DA59a3#/
How to provide liquidity to $XAVABC?
You will also be entitled to rewards in $DEXTF by providing liquidity to $XAVABC/$AVAX pool. Up to 7,000 $DEXTF tokens per day are up for grabs!
Provide liquidity here: https://traderjoexyz.com/pool/0x69afdba5a7fec26ba2f0a3f42962b53ec5da59a3/AVA
How will $XAVABC work in practice?
Minting & Redemption: The underlying assets are locked into a smart contract, as per their weight, to mint $XAVABC tokens. The holder can redeem all underlying assets at any time using the DOMANI Dapp.
Rebalancing: As previously stated, $XAVABC will be actively managed to follow the appropriate market capitalization weight of the top 10 tokens within the Avalanche Ecosystem. Rebalancing of the index will be completed on a monthly basis.
Custody: The underlying tokens are held inside a vault contract, which is
not accessible by anyone other than the individual holding the $XAVABC token.
Benefits
One single transaction gives the investor exposure to 10 assets providing a risk diversification in various DeFi sectors. By having multiple tokens combined into a single index token, the investment is less volatile than more concentrated portfolios of individual assets. $XAVABC can simply be purchased on TraderJoe using any token traded on the DEX. For more sophisticated users, the $XAVABC can be minted on the DOMANI Dapp by providing the underlying assets. Similarly, the $XAVABC token can be redeemed for the underlying assets or exchanged for $AVAX on TraderJoe. Moreover, users who purchase $XAVABC will be eligible for rewards in $DEXTF, up to 7,000 tokens per day!