It’s a simple idea. Buy one crypto, Buy all crypto.
This is the synthetic asset for Global Crypto Total Market Cap.
There is a lot of demand on the index fund of crypto. There are several index protocols such as Set protocol(tokensets.com), Power index pool(app.powerpool.finance). These protocols are quite successful so far but couldn’t consume all demand for Crypto Market.
Because these protocols are only focused on several DEFI tokens or a little more, they are not suitable for this rapidly changing crypto market. mCMC would solve this problem and let you expose your asset to revolutionary crypto according to their market cap.
POSSIBLE QUESTION
Oracle?
Since Band Protocol provides oracle on CoinMarketCap, I’m sure they could provide the same oracle for us. You can check “https://coinmarketcap.com/charts”
Price of Oracle feed?
We don’t have to receive 4500+ coins price oracle. Band Protocol will combine total market cap and give us just 1 price feed.
Total market cap is more than 1.5T. How do you expect the token to be priced?
mCMC could pegged to Coin Market Cap at that ratio of 1:100billion or something like that. It will work nicely.
Again, It’s simple idea. Buy one crypto, Buy all crypto.
I don’t like this because the performance of this is influenced by new issuance. For example, new coin listings would cause this figure to go up. Why should minters be on the hook for this?
Appreciate the reply. I really hoped to see someone talks about this topic. I do agree with the point that you are talking about. But I don’t think new ICO will effect mCMC meaningfully. As you know, the total global coin market cap is approx. 1,400,000,000,000USD right now, so that it’s almost invincible compare to ICO price.
Moreover, CoinMarketCap doesn’t enlist every coin when they ICO. It takes a time(about a week usually), and it was the same for Mirror Protocol.
Recently, DEFI100 was successfully launched in BSC. DEFI100 is concentrated on DEFI coin only, but mCMC will include all coins so that it will be better in terms of Asset Distribution.
I do believe we have to start this Index Fund for the first time. That’s the critical thing in these DEFI protocols.
i dont like funds because it seems better to track individuall assets (instead of derived products). but to have a part of the coinmarketcap sounds awesome (since its not a company sold product). would vote for it.
The Mirror 50 equal weight index is an index fund that tracks the top 50 CMC cryptocurrencies by marketcap. The top 50 tokens cover approximately 97% of the total crypto marketcap. The mAsset would include each cryptocurrency in a fixed weight amount of 2%.
Why Equal Weights?
Bitcoin dominance. If it were weighted by marketcap the investment profile would be:
Bitcoin: 65%
ETH: 13%
BNB: 2.5%
Tether: 2.36%
DOT: 2.35%
Cardano: 2.16%
XRP 1.53%
Remaining 43 tokens: 13.45%
If you include all the coins coins on CMC or coingecko the distribution wouldn’t really change. You might as well just split your mAsset 80/20 BTC-ETH.
Using a fixed-weight approach to each token give the mAsset holder greater exposure to smaller tokens. They can then use BTC and ETH mAssets to balance their overall allocation.
Rebalancing
I was thinking about this but when using an oracle price feed it seems the the rebalancing would occur constantly. I’m not sure about this.
Mirror 150 Index
I also would like to open discussion on the Mirror 150, sort of like the crypto Russell 2000. This index would track tokens 51-150 on CMC.
Purpose: To give exposure to higher risk/higher reward coins.
Balance: Can be equal weighted or marketcap weighted.
This is a good idea too But I’m a little afraid 100 coins are continuously changing so that Band Protocol will not be able to give us quick oracle feed.
Incredible idea:) I do like this. But I don’t think we can make all of these at once. How about we make mCMC first and then try yours? I think mCMC is easier to understand, and persuade many people to use Mirror Protocol
It will be sensational!!
But I’m a little afraid 100 coins are continuously changing so that Band Protocol will not be able to give us quick oracle feed.