MATRIX INDEX
Matrix Index is an encrypted index fund to track the qualified tokens of crypto market and blockchain. The index fund will be weighted by each token’s market value with a basket of assets. In MatrixETF the share can be recognized, sold and redeemed by the new share minted by a basket of tokens.
Matrix index is also the simplest way to participate in the DeFi finance, because users do not need to buy these DeFi tokens from exchanges. The index will be evaluated and adjusted once a month to weaken or eliminate the poorly performing tokens, add the weighted tokens with high quality, or add new DeFi tokens for balance, so as to reflect the overall trend of the cryptocurrency market as much as possible.
The index fund is weighed based on the market value of each token and there is a basket of token assets of the fund. It can also be used to mint new fund share through a basket of tokens and redeem them. The fund share can be subscribed and sold on MatrixETF platform.
However, by subscribing MDI product, users can greatly save the gas fee of Ethereum and other public chains, and only pay once to gain encrypted assets including multiple tokens.
Here’s an infographic showing types of matrix index funds
Below are some MatrixETF indexes
Matrix Index Rebalance
According to the development of the cryptocurrency market and the operation status of the project party, Matrix Index will be maintained and adjusted on a monthly basis, including the weighted proportion of tokens, addition and deletion of new tokens, etc.
The process of Rebalance consists of two phases:
1. Confirmation
This phase usually takes place in the fourth week of each month. At this phase, the details of the next reorganization will be discussed and determined, including:
Whether to adjust circulating supply of funds, whether to adjust the token weighted proportion, whether to delete tokens or add details of new tokens
2. Rebalance
The index and fund need to be adjusted according to the announcement after the end of the confirmation, in which the addition and deletion of related token and weighted proportion are completed in the first week of the next month.
ABOUT MATRIXETF
MatrixETF is the next generation of decentralized ETF platform to run the cross chain，which goal is to establish a decentralized, automated, personalized and diversified portfolio for users, as well as help users easily enjoy long-term, stable and efficient financial services.
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