Announcing the DEGEN index
We’re thrilled to announce DEGEN, our first community index.
DEGEN was initially suggested by @redphonecrypto on Twitter and immediately received a lot of interest from the wider crypto community. After weeks of brainstorming and looking at various index projects, Redphone, 0xBay and the community around DEGEN finally chose indexed.finance as their preferred platform to launch the index and initiated a proposal in our community forum.
The newly appointed Sigma Committee, representing the Indexed community, was glad to support this request and bring DEGEN to market in a record time of 4 weeks.
As its name implies, the DEGEN index aims to find higher-risk, higher-reward assets by seeking out emerging projects with exceptionally high growth potential in the DeFi sector.
The market caps of these projects range from $50 million to $2 billion. If a token’s market cap outgrows the index, it will be automatically replaced with the largest market cap token on the pre-existing list of alternates (described below) upon re-indexing. In this way, the index will constantly evolve to capture upside from tokens during their most rapid growth phases.
We hope DEGEN will be the perfect instrument for users seeking to capture some of DEFI’s exponential growth without having to manage their portfolio on a daily basis.
At start DEGEN will contain:
- Thorchain, 15.6% ($RUNE)
- Ren, 14.58% ($REN)
- Reserve Right, 10,7% ($RSR)
- Curve, 10% ($CRV)
- 1INCH, 9.2%($1NCH)
- Ocean, 9.2%($OCEAN)
- Alpha Finance, 8.5% ($ALPHA)
- BadgerDAO, 8.3% ($BADGER)
- Polkastarter, 7.17% ($POLS)
- Mirror Protocol, 6.46% ($MIR)
Sushi ($SUSHI ) KeeperDAO ($ROOK) API3 ($API3) Hegic ($HEGIC ) Perpetual Protocol ($PERP) Alliance Block (ALBT) Keep3rV1 ($KP3R) Axie Infinity ($AXS) 88mph ($MPH) dHEDGE DAO ($DHT) Whiteheart ($WHITE) Cover Protocol ($COVER) OctoFi ($OCTO) Synlev ($SYN)
Liquidity mining ($NDX + 🔜$SUSHI🍣)
Liquidity mining for DEGEN will be enabled within the next 24hrs. For that purpose, 100,000 $NDX will be distributed over the period of 3 months as rewards to liquidity providers for the DEGEN/ETH pool.
Initially, rewards will be paid to liquidity providers on Uniswap but will be switched over to Sushiswap in about 4 weeks time. DEGEN will be included in Sushiswap’s Onsen program, meaning that DEGEN liquidity providers will earn $NDX + $SUSHI.
There are two reasons we didn’t start on Sushiswap from the get-go.
- The Sushiswap team hasn’t released the smart contracts for double token rewards yet
- Our app wasn’t ready to accomodate Sushiswap LP tokens out of the box
Since we didn’t want to delay the launch of $DEGEN just to wait for the $SUSHI rewards, we chose to launch as is but will switch over once everything is in place. To make life easier for our community, we’ll provide a migration tool allowing you to migrate your liquidity from Uniswap ➡️ Sushiswap in one transaction.
How to buy $DEGEN
To buy the DEGEN index like with all indexed.finance indices, you have two options.
1) BUY $DEGEN (good for small purchases < $10,000 )
The easiest option is to simply buy $DEGEN on Uniswap.
However, note that in the first hours after launch liquidity in the $DEGEN pool might be quite low in which case we don’t recommend buying large amounts (e.g > $10,000) because you will face slippage costs.
As the liquidity on Uniswap grows you can buy larger amounts without moving the price.
2) Mint $DEGEN
When you go to indexed.finance and click on the DEGEN pool (see image below) and click on “Mint”, you can directly mint DEGEN by either contributing the 10 individual DEGEN component tokens in the weights suggested by the UI
“Mint with Uniswap” which allows you to pay using just ETH and our Uniswap router buys the 10 tokens on Uniswap and deposits them into the DEGEN liquidity pool for you.
Note that the last option can be quite gas intensive and should only be considered for buys > $10,000
How to stake DEGEN
Unlike our previous liquidity mining program for DEFI5 and CC10 there are no $NDX rewards for simply holding and staking $DEGEN.
To earn $NDX you have to provide liquidity on the DEGEN — ETH pool on Uniswap and then stake your LP tokens on indexed.finance.
First Protocol Earnings
As announced in the forum, all Sigma indices contain a 0.5% exit fee. On burning DEGEN tokens back into their underlyings, a 0.5% fee is levied which accrues to the Indexed treasury. Decisions about what to do with this revenue is subject to governance.
If you’re wondering why someone might burn DEGEN instead of just selling it the answer is: arbitrage. If $DEGEN can be bought at a discount, burnt and the underlying tokens consequently sold at a profit on external markets, arbitrageurs step in and profit.
Adding a fee to this process will allow the Indexed community to capture some of the profits made by Arbitrageurs and provide first revenue to the protocol.
We’re incredibly excited to launch DEGEN as our first Sigma index and can’t wait to see it grow. Get $DEGEN on Uniswap.