Truly diversified exposure
|Available on chain|
|Number of assets||25||10||10|
|Supported Assets||Multi Chain||Multi Chain||Ethereum Only|
|Total Market Exposure||DeFi Only|
Actually, you could! But, by doing this manually, you would have to constantly track all 25 assets across different wallets, while incurring fees and taxes when frequently trading between them. With AMKT, all you have to do is hold the token.
Assets are securely held by Coinbase Custody, an institutional grade custodian. You can view the assets backing AMKT alongside a Chainlink Proof-of-reserve integration on the AMKT dashboard. Coinbase Custody holds insurance for digital assets held across their storage systems against losses from theft, including cybersecurity breaches.
By design, the index is meant to be passive. This means that AMKT closely represents the market, instead of someone's opinion. When decisions need to be made, AMKT is governed by a Decentralized Autonomous Organization (DAO) made of the holders of AMKT and its stewards. For example, the DAO can vote on asset inclusion changes, which are then implemented by governance stewards.
The index tracks the market by following its proportions. This means that if the marketcap of crypto is $1 trillion, and Bitcoin is 50% of that, then the index will be 50% Bitcoin, so on and so forth with the other assets in the index. Each month, the weights are changed to match the market. Each quarter, new assets are included and old ones removed to match the top 25.
The benefit of tokens is that they are composable. Decentralized Finance (DeFi) aims to create a financial ecosystem in which anyone can participate. Composability means that people can use AMKT across other protocols like lending, options, and other uses.
The index is rebalanced monthly and reconstituted quarterly. This means that each month, the proportions of the 25 assets are changed to match the current state of the market. Each quarter, growing assets are included and others removed to match the top 25.
Because the index is meant to track the market as a whole, specific components can't be changed manually by holders.
Because Bitcoin and Ethereum represent a large chunk of the market today! Each cycle, as crypto matures, Bitcoin and Ethereum dominance has trended down, leaving space for new assets to take market share, which will be represented in the index as well.
While the index may be less volatile than holding specific tokens, crypto as a whole remains an extremely volatile space. This means that the index will follow volatile movements of the market.