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× Team Roadmap Whitepaper DAO Community Compass

Token Selection

  • In order for the ILSI index to provide the right coverage, the universe of tokens has been split into key sub-segments and a carefully selected number of tokens was picked from each. The main categories considered are:
  • Bitcoin
  • Ethereum
  • Oracles / Web 3.0
  • Layer 1 infrastructure / smart contract platforms
  • Decentralized Finance (“DeFi”)
  • Exchange tokens, including Centralized Exchanges (“CEXs”) and Decentralized Exchanges (“DEXs”)
  • NFTs / GameFi / Metaverse

Index Coverage

Each selected asset either plays, or has the potential to play, a significant role in its category.

The index as currently constituted captures approximately 60% of the total market capitalisation, providing an efficient buy-and-hold strategy for investors seeking to benefit from the growth of the crypto market while being exposed to all relevant narratives.

Inclusion Criteria

  1. Available on Ethereum blockchain.
  2. Sufficient level of liquidity on DEXs when taking into account token inclusion, estimated near-term demand and rebalances.
  3. Assets with strong fundamentals, including criteria such as: increased utilization of their infrastructure / service, increased developer activity, key competitive advantages, large and growing addressable market, attractive roadmap, top management team / contributing team from DAO, support from leading VCs / key partnerships.
  4. Assets must have conducted an appropriate level of security audits and/or security professionals must have reviewed the protocol to determine whether it fits under security best practices.
  5. Assets cover each of the sub-segments described under the “Market-wide coverage” sub-section.
  6. Assets that are not subject to hacks, exploits or other forms of attacks that inflict serious vulnerabilities to the project.

Methodology / Index Weight Calculation

The ILSI index is constructed based on a modified market cap-weighted methodology, with the following considerations:

  • The weighting of each project is proportional to a modified measure of its market capitalisation, i.e., it’s computed based on the square root of market capitalisation.
  • Square root of market capitalization is used in order to smooth out the large differences between the top components (Bitcoin, Ethereum) and the rest of the assets.
  • Upper cap of 20%: any token allocation must be lower or equal to 20%, in order to limit the effects of any single asset’s trajectory driving the returns of the portfolio.
  • Lower cap of 3%: any token allocation must be higher or equal to 3%, in order to have an appropriate level of exposure to smaller projects in the portfolio.

Index Maintenance

The index is rebalanced on a 3-month basis. The rebalancing process is comprised of two phases:

  • Evaluation phase: including evaluating existing tokens, screening the list of aspiring new tokens in each category and taking decisions on any changes to the prevailing portfolio composition. Revised index weights and portfolio changes are incorporated in the index in the final week of the rebalancing month. The outcome of the evaluation phase will be published and will be readily available to all investors.
  • Rebalancing phase: will take place in the first week post- the rebalancing month.

Current Index Breakdown

  1. 1. Ethereum (21.4%)
  2. 2. WBTC (17.4%)
  3. 3. Polygon/Matic (15.9%)
  4. 4. FTX Token (10.7%)
  5. 5. Chainlink (10.3%)
  1. 6. APE Coin (7.9%)
  2. 7. AAVE (6.3%)
  3. 8. Yearn Finance (4.3%)
  4. 9. Synthetix (3.3%)
  5. 10. dYdX (2.5%)
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About Stakeborg and Stakeborg DAO

Stakeborg is a leading crypto hub focused on increasing the adoption of blockchain and crypto at all levels through education, community building, media and consulting activities. Stakeborg has been at the forefront of the nascent DAO industry by establishing the Stakeborg DAO community. Fees related to Stakeborg-sponsored indexes will be wired to the DAO treasury.

Investors opting for a mixed strategy, with allocations in both Stakeborg-sponsored indexes and Stakeborg DAO $STANDARD token, would be part of the whole Web 3.0 eco-system driven by the DAO community.