Ethereum Family Index (EFI)
Background
The Ethereum Family Index focuses on the most prominent and influential projects within the Ethereum ecosystem, highlighting Ethereum’s dominant presence in the blockchain scene. Ethereum is renowned for its smart contract capabilities, which have enabled the creation of decentralized applications (dApps), decentralized finance (DeFi) platforms, and numerous other innovations in the blockchain space. By integrating key Ethereum-based projects, the Ethereum Family Index allows investors to gain exposure to the core elements driving the growth and development of the Ethereum network. This index product includes tokens from major projects on Ethereum, offering a diversified portfolio that leverages the stability and innovation of the Ethereum ecosystem.
The Ethereum ecosystem is vast and continuously evolving. As of June 2024, Ethereum's market capitalization surpassed $400 billion, making it the second-largest cryptocurrency by market cap. Ethereum powers over 60% of all decentralized applications (dApps) in the blockchain space. Liquid staking derivatives (LSD-Fi) have grown significantly within the Ethereum network, with platforms like Lido collectively managing billions of dollars in staked assets. The concept of restaking is gaining traction, enabling users to enhance their yield by staking ETH multiple times. These figures and trends highlight the extensive utility and continuous innovation within the Ethereum ecosystem, making the Ethereum Family Index a strategic choice for investors looking to capitalize on the growth of blockchain technology
Initial Set Up
| Name | Token | Price ($) | marketCap ($) | Allocation | DEX TVL ($ 1M) | Token Contract |
|---|---|---|---|---|---|---|
Ethereum | ETH | $3,432.89 | $412,589,000,000 | 57.75% | - | - |
Ethena | ENA | $0.53 | $808,396,600 | 5.76% | 6.5 | |
Pendle | PENDLE | $5.06 | $783,721,300 | 5.68% | 1.6 | |
Metis | METIS | $48.04 | $273,151,800 | 3.35% | 3 | |
Ether.fi | ETHFI | $3.08 | $355,365,800 | 3.82% | 1.4 | |
Lido DAO | LDO | $1.97 | $1,762,111,000 | 8.51% | 5 | |
Uniswap | UNI | $9.27 | $5,562,770,000 | 15.12% | 31.3 |
The parameters are updated with the data from CoinmarketCap and Uniswap on 30/06/2024. The component tokens may be updated as the market capitalization changes over time.
Methodology
Our methodology involves selecting and weighting tokens based on their market capitalization. To prevent over-concentration, we cap the allocation of any single token at 40%. Excess weight is redistributed proportionally among the other tokens in the index. The selection criteria include factors like network compatibility (Ethereum ERC20), market cap, liquidity, project history, and security reviews. These standards ensure that only high-quality, stable tokens are included in the index.
If you would like to see the full details, please see [View Details] > [Methodology] of the product details
Notes:
Allocation calculation logic with 40% Max. cap and 2% low threshold with assuming no slippage / swap fees included during the rebalancing.
The 40% max cap is applied in the allocation calculations by averaging raw value and the max cap.
The allocation lower than low threshold will be set to 0%.
Any excess weight is redistributed proportionally among the other tokens in the index.
Maintenance
The Ethereum Family Index is maintained quarterly, with updates occurring in two phases:
Determination Phase: During the third week of each rebalancing month, we review and determine the necessary changes for the next quarter. This involves analyzing price and market cap data to ensure the index remains balanced and reflective of the current market.
Reconstitution Phase: Adjustments, additions, and deletions of index components are implemented on the first business day of the quarter. This ensures that the index adapts to market changes and continues to provide optimal diversification and risk management.
Find the rebalancing history as below:
[EFI] Rebalancing HistoryBy leveraging these methodologies, the Ethereum Family Index provides a robust and dynamic investment product that adapts to market conditions while maintaining a stable and diversified portfolio.
Last updated