Index Coop Governance Mulls Creation of a Polygon 10 Index (P10)

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DeFi
Index Coop Governance Mulls Creation of a Polygon 10 Index (P10)

Index Coop (INDEX), a community-driven, decentralized, and autonomous asset manager could soon launch a Polygon (MATIC) based index fund that would track the price of the top 10 performing projects built on Polygon.

Introducing the Polygon 10 Index

The proposal was floated by Asif Khan and aims to establish a partnership between the Polygon Foundation and the Index Cooperative to launch the Polygon 10 Index (P10).

As mentioned earlier, the index would comprise of a total of 10 best performing tokens in the Polygon ecosystem based on weighted market cap.

In essence, P10 seeks to give investors exposure to Polygon ecosystem blue-chips.

Should the proposal for the creation of P10 get approved by the Index Coop governance, its launch would mark the first scaling solution-focused product from Index Coop.

Criteria for Token Inclusion

Among other conditions, some of the requirements the tokens need to fulfil include organic network activity or usage, more than 10 million MATIC of circulating market cap, ample Polygon DEX liquidity, and at least 2 months of history of operation of the protocol.

In addition, the protocol’s respective tokens must have at least 2 months of price and liquidity history, a protocol-wide independent security audit, and, of course, they must be available on the Polygon blockchain.

Notably, P10’s methodology will include a 20% weight cap for any one project to ensure the index provides diversified exposure.

The following token composition was proposed to the Index Coop governance with Telcoin’s TEL token leading the pack with a 20% allocation. TEL is followed Aavegotchi with 19.01% and Polygon-based DEX Quickswap’s QUICK token at 13.4%, respectively.

Index Coop Governance Mulls Creation of a Polygon 10 Index (P10) - 1

(Source: Index Coop)

At the time of writing, the proposal seems to have attracted overall positive feedback from the Index Coop community with the vast majority of users supporting the creation of the P10 Index.

Today, Polygon – formerly known as Matic Network – is inarguably the most widely adopted Ethereum scaling solution in the crypto industry, handling approximately 5,400,000 daily transactions and having more than 400,000 daily active addresses.

Polygon’s growth becomes all the more remarkable considering it launched its mainnet a mere 13 months ago in June 2020.

Aisshwarya Tiwari

Aisshwarya is currently working as the Chief Editor at crypto.news and holds more than 4 years of experience in the digital assets industry. He holds an undergraduate degree in Commerce with Honours and a post-graduate diploma in Liberal Studies. Before entering the crypto industry, Aisshwarya worked as an SAP Consultant for a global IT firm. He also cleared the CFA Level 1 exam before pivoting to the crypto industry due to its novel and exciting propositions.