Do You Even Lift?
Introducing The 484 Fund [$ERROR]
Introduction
In the month since we released the $NFTP index, here at Indexed we’ve been working on the tasks we put forward in our Q2 Roadmap, which are predominantly related to protocol upgrades in terms of fund structure, revenue distribution and so on.
We didn’t stop thinking about new products though, which brings us to our announcement of our most distinct offering yet: the 484 Fund.
Back in March, we spotted this Tweet:
For context, 0xb1.484 (‘484’) is one of the single largest wallets that regularly engages with DeFi protocols, operating with — at one point — upwards of half a billion US Dollars.
The resulting proposal is an ETF that tracks projects that 484 is particularly enthusiastic about on Twitter, utilizing a weighting strategy that’s unlike anything else we currently have available.
We’ve received proof that 484 has seen and approves of the terms put forward in the proposal. They appear to be happy with it:
We’re excited to launch this, and look forward to seeing how it performs!
Weighting
The $ERROR fund utilizes a barbell strategy over the circulating market caps of its assets to assign weightings, which focuses heavily on those assets at the very top and bottom of the rankings with only limited exposure to those in the middle.
The scoring contract for $ERROR works in roughly the same way as $DEGEN and $NFTP: we retrieve circulating market caps via a Chainlink oracle, but instead of then assigning weights relative to each other, we simply rank them and assign fixed weights.
For the various numbers of assets that can be included in a barbell strategy, we have settled on the following weightings:
Membership
Due to the way that our ETF controllers work, increasing or decreasing the number of active assets in a fund requires redeploying and migrating. Since the initial proposal mentions the desire to include $YFL — for a total of six assets — after they’ve performed a token migration, we reached out to 484 on Telegram to ask if they had a ‘standby’ they want to utilize in the meantime.
484 confirmed VSP as the sixth asset, and stated a desire to replace ROOK with SUSHI. Since it is 484 themselves that will be minting the first US$500,000 worth of tokens for liquidity purposes, them doing so is effectively a signature confirming as such.
The initial members of $ERROR are:
1. [25%] SUSHI
Circulating market cap: US$2,047,209,145
2. [15%] ALPHA
Circulating market cap: US$361,020,892
3. [10%] BADGER
Circulating market cap: US$258,211,457
4. [10%] VSP
Circulating market cap: US$119,066,678
5. [15%] YAXIS
Circulating market cap: US$58,212,524
6. [25%] BDP
Circulating market cap: US$51,603,935
Market caps pulled from CoinGecko on the 27th of April 2021.
Liquidity Mining
Liquidity mining for $ERROR will be enabled seven days post-launch.
After this time has elapsed, the Sigma committee will determine the amount of rewards to assign and the duration — bearing in mind that the release of our dynamic emissions proposal is imminent, and the LP pool can be folded into this program.
484 has offered to place the first US$500,000 worth of $ERROR tokens into a Uniswap liquidity pool, so the need to quickly incentivize liquidity isn’t as strong as it usually is.
Keep an eye out on Twitter and Discord for updates!
How To Get $ERROR
The token address for $ERROR is 0xd3deff001ef67e39212f4973b617c2e684fa436c.
To buy into the $ERROR fund you have two options.
Buy $ERROR (< US$10,000)
The easiest option is to simply buy $ERROR on Uniswap or on the Indexed Finance site itself (our UI integrates Uniswap):
Mint $ERROR (≥ US$10,000)
If you visit Indexed Finance, open up the $ERROR pool by clicking on it from the front page:
From there you can:
a) Click Mint, which allows you to create new $ERROR tokens by contributing the six component tokens in the weights suggested by the UI, or
b) Click Mint With Uniswap, which allows you to mint $ERROR with ETH:
In the latter case, our Uniswap router buys all of the necessary tokens on Uniswap and deposits them into the $ERROR pool for you. Bear in mind that this latter option can be quite gas intensive, and is subject to a 2% swap fee.
Conclusion
We’d like to thank 484 again for their interest in partnering with us to produce something new in the space. Here’s to continued experimentation!
