# \* Crypto Index Fund \*

**URL:** <https://discourse.uma.xyz/t/crypto-index-fund/897>\
**Category:** XIO Accelerator - Ideas Competition\
**Created:** [April 16, 2021, 6:06pm UTC](https://discourse.uma.xyz/t/crypto-index-fund/897 "2021-04-16T18:06:39Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![maaz28](https://yyz2.discourse-cdn.com/flex032/user_avatar/discourse.uma.xyz/maaz28/32/262_2.png) [@maaz28](https://discourse.uma.xyz/u/maaz28)\
**Post date:** [April 16, 2021, 6:06pm UTC](https://discourse.uma.xyz/t/crypto-index-fund/897/1 "2021-04-16T18:06:39Z")

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- Crypto Index Fund\* - A legacy of top cryptocurrencies

**Summary Description**

The crypto market is so volatile, for someone who is new into the crypto world and want to invest, the selection of a potential asset is a big challenge, traditional stock market investors wants a less volatile asset to invest in.

I’m introducing an idea of a crypto backed index fund. the fund made up of top 5 cryptocurrencies. The value of this fund derived from all of the 5 included cryptocurrencies which makes this fund less volatile and attractive for the potential investors.

We need to normalize the value of each of the 5 tokens involved. The scale of each coin should be same (for example may be between 0 and 1) to keep the same impact of each cryptocurrency on the index fund price.

**Which metric will your synth track?**  
The real-time value of cryptocurrencies via an oracle

**How will you get data for your metric**  
Chainlink or uniswap TWAP oracle

**What collateral would you use for this synthetic**  
We can have two approaches here  
1.Index fund cryptocurrencies as a collateral  
2. Use USDC for the stability  
(I want a community discussion here)

**Describe how you would create this synthetic**  
Using UMA protocol & uniswap or chainlink price oracle, need some development help as well.

**Marketing**  
Marketing via simple and beautiful website. Informative content includes animations and videos that illustrate the use case for sBIG5. In the very next quarter we’ll develop a separate token for the complete Decentralized Autonomous Organization (DAO) to manage and decide which currencies to involve in the index fund and the future of sBIG5 index fund.

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**Author:** ![jay](https://avatars.discourse-cdn.com/v4/letter/j/ed8c4c/32.png) [@jay](https://discourse.uma.xyz/u/jay)\
**Post date:** [April 19, 2021, 4:48am UTC](https://discourse.uma.xyz/t/crypto-index-fund/897/2 "2021-04-19T04:48:27Z")

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There are a bunch of similar products out there you may want to check out. Be aware that my including them on this list does not amount to endorsement 🙂

- Lots of stuff on indexed.finance
- [CRYPTO20](https://www.crypto20.com/en/) tracking the top 20 cryptocurrencies by market cap
- [TCAP](https://cryptex.finance/#about) tracking “total” market cap of the crypto space – not sure how they do this

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**Author:** ![Saffa\_Abroad](https://yyz2.discourse-cdn.com/flex032/user_avatar/discourse.uma.xyz/saffa_abroad/32/275_2.png) [@Saffa\_Abroad](https://discourse.uma.xyz/u/Saffa_Abroad)\
**Post date:** [April 19, 2021, 7:17pm UTC](https://discourse.uma.xyz/t/crypto-index-fund/897/3 "2021-04-19T19:17:55Z")

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Yeah that’s the main problem with this idea is that there’s a ton of competition - but I guess that also means there’s a market if you’re able to create a unique product

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**Author:** ![maaz28](https://yyz2.discourse-cdn.com/flex032/user_avatar/discourse.uma.xyz/maaz28/32/262_2.png) [@maaz28](https://discourse.uma.xyz/u/maaz28)\
**Post date:** [April 19, 2021, 7:44pm UTC](https://discourse.uma.xyz/t/crypto-index-fund/897/4 "2021-04-19T19:44:31Z")

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Wow that’s amazing to see huge potential competitors, though every index fund is unique in the way how it manage the funds

It’s not a traditional index fund where you need a rebalancing function, this project is just use to reflect the cumulative prices of top crypto market leaders.