Nearly 50% of the value in the U.S. stock market is held by index funds.
With Mass Adoption coming in, we need Crypto Indexes.
Introducing @phuture_finance, a Decentralized Index Fund which provides exposure to the DeFI sector while generating yield.
A THREAD
๐๐งต
(+ Alpha)
โ But first, what is an index โ
An index is a compilation of multiple assets, or a basket of assets.
These asset prices are tracked and they determine the performance of the index.
Indexes are widely used in TradFi.
An example of a popular TradFi Index is the S&P 500.
The S&P 500 features 500 leading U.S. publicly traded companies, with an emphasis on market capitalization.
With an average annualized performance of 11.88%, it has shown to be a great way to invest in top U.S. Companies.
Investing in an Index Fund allows the investor:
โช๏ธ To have exposure to a basket of assets, taking advantage of the growth of a whole sector
โช๏ธ While avoiding the risk of being exposed to a single asset
โ But how can we do that in Crypto โ
1๏ธโฃ Introduction
Phuture is a decentralised protocol that gives users passive exposure to crypto assets.
With leading index products built on Ethereum and Avalanche, Phuture is at the forefront of innovation in crypto passive investing.
youtube.com/watch?v=5iM0YI4QjH8
Each Phuture index is non custodial and fully collateralized by its underlying constituent assets.
Additional strategies can be utilized to improve returns and influence the indexโs risk profile.
The Assets Rebalancing is done through Keep3r network.
2๏ธโฃ Problem & Solution
๐ฃ๐ฟ๐ผ๐ฏ๐น๐ฒ๐บ๐
There are thousands of assets in crypto.
Choosing a single project to invest in might be hard for the newcomers.
Most of the "crypto beginners" would want exposure to crypto growth without risking to choose the next $LUNA or $FTT.
Investing in Crypto can be hard for most people because of:
โข Drastic volatility
โข Gas fees
โข Time required for due diligence and research
โข Maximizing capital efficiency
โข Capturing yield from tokens
โข And many more reasons.
๐ฆ๐ผ๐น๐๐๐ถ๐ผ๐ป
You've figured out by now that Crypto Indexes are the solution.
There are very few good projects offering interesting Crypto Indexes currently. Phuture is one of the few.
3๏ธโฃ Products
Phuture currently has 3 products live:
๐ต PDI - The only DeFi index on Ethereum with underlying yield from Yearn.
๐ด CAI - The benchmark index for the Avalanche ecosystem.
๐ฐ USV - The most competitive returns on USDC, powered by Notional.
The Phuture DeFi Index (PDI) offers exposure to the top crypto assets by market capitalisation in DeFi.
It is the only DeFi index to generate yield from the underlying tokens, utilising Yearn.
The assets are rigorously selected and weighted in proportion to their MarketCap.
The Colony Avalanche Index (CAI) provides exposure to the most prominent projects on Avalanche. Additional yield is passively earned through interest-earning protocols.
This index is perfect for investors that are bullish on Avalancheโs ecosystem.
The USDC Savings Vault (USV) accepts USDC giving you interest on your idle USDC.
USV offers an optimised interest rate by investing into a blend of three and six month bonds. It dynamically allocates capital to whichever maturity has the highest interest rate at the time.
USV offers depositors competitive rates because borrowers are willing to pay a premium to borrow at fixed rates.
USV is powered by Notional, the largest and most tested fixed rate lending protocol on Ethereum supporting a loan book of close to $1bn at its peak.
4๏ธโฃ Tokenomics
$๐ฃ๐๐ง๐ฅ (0xE1Fc4455f62a6E89476f1072530C20CF1A0622dA)
๐๐ผ๐๐ฒ๐ฟ๐ป๐ฎ๐ป๐ฐ๐ฒ
Staked $PHTR holders will be able to exercise their right to vote on, or propose new ideas to improve the Phuture protocol.
๐ฆ๐๐ฎ๐ธ๐ถ๐ป๐ด
Once a user buys $PHTR token, they can stake it to receive interest.
๐๐ถ๐พ๐๐ถ๐ฑ๐ถ๐๐ ๐ถ๐ป๐ฐ๐ฒ๐ป๐๐ถ๐๐ฒ๐
$PHTR tokens rewards to those who add liquidity to index funds on supported exchanges.
5๏ธโฃ Edge
โช๏ธ Phuture has raised $3.75 million across its seed rounds with investment led by Ascensive Assets and followed on by other prominent crypto funds and angel investors
โช๏ธ Assets are rigorously selected with clear and disclosed criteria
โช๏ธ It is the only DeFi index generating yield on the underlying assets
โช๏ธ First Mover Advantage: One of the first Crypto Index Fund
โช๏ธ Fully Audited
โช๏ธ ๐ฃ๐ฎ๐ฟ๐๐ป๐ฒ๐ฟ๐๐ต๐ถ๐ฝ๐
Zerion is an innovative Web + Mobile Wallet to Track & Manage a portfolio.
It's an advantage that Phuture has their products on this growing wallet.
Yearn for Yield Aggregator & 0x for Liquidity are also great partnerships.
6๏ธโฃ Alpha
โช๏ธ Phuture is working on a crosschain solution
โช๏ธ Phuture v2 coming soon
โช๏ธ Ready for an Index Narrative
โช๏ธ Indexes in Crypto account for less than 1% of the global market โก๏ธ This is a huge difference compared to TradFi โก๏ธ Phuture is poised to grow along Crypto Indexes
7๏ธโฃ TL;DR
8๏ธโฃ Conclusion
This thread was made in collaboration with @phuture_finance.
As always it's NFA, but a good opportunity to learn more about and be early on Indexes.
You should try yourself to invest in their yield-generating indexes.