APY.Finance to Launch First Convex Index
APY.Finance is launching the next layer in the Curve ecosystem: the Convex Index.
This index, the first of its kind, is a risk-optimized basket of screened Convex positions that users can gain exposure to with the purchase of a single token.
The index will be managed by a new DAO (consisting of APY token holders, boost-lockers, and liquidity providers) and will open the door to additional benefits such as profit-share for boost-lockers.
Major Growth Potential and Improved Performance on the Curve Ecosystem
Our research demonstrates the growing need for a product such as The Convex Index, and the major growth upside potential within the market.
The Convex Index is built upon the growing Curve ecosystem, which currently encompasses 15% of DeFi’s TVL. Many of APY.Finance’s largest depositors have continued to leverage the platform to gain secure, stable, and diversified Convex exposure.
Curve positions improve risk-adjusted portfolio performance.
Adding Curve positions improves the risk-adjusted performance of a variety of portfolios, ranging from a traditional stock and bond portfolio to crypto-concentrated mixes. The Convex Index is optimized to enhance the characteristics that make this possible, such as low overall volatility and reduced correlation to equity markets, government bonds, and crypto mainstays such as Bitcoin and Ethereum. This makes the Index an ideal component for institutional portfolios requiring new forms of diversification.
Cross-chain Convex Exposure with an Index Token
Following the launch of the Convex Index, a wrapped index token will be released, allowing users to gain index exposure by simply purchasing the token.
Currently, the Curve ecosystem exists primarily on Ethereum Mainnet. Its existence on other chains pales in comparison and completely lacks the advantages that a Convex boost provides. The wrapped Convex Index token, cross-chain, will unlock capital currently unavailable on mainnet, broadening the horizons of the full Curve ecosystem to different chains, and granting exposure to a wide new audience. Further, the index token greatly simplifies the complicated and costly process of depositing into, and withdrawing from, any single Convex position.
The Convex Index 2022 Roadmap
Phase 0: Foundation [Complete]
Phase 0 set the foundation for the DAO and the launch of The Convex Index.
The recent implementation of the ‘Fee Restructure’, where a portion of platform fees are deposited into the DAO, sets the groundwork for the DAO. The release of the Convex Index Litepaper begins to shape the new narrative and educate about the product in preparation for launch.
Phase I: Release
The DAO and Convex Index will be launched.
Moving to a DAO structure allows us to pursue new opportunities that wouldn’t be accessible as a traditional company. DAO members will be able to utilize the DAO treasury to operate the Convex Index platform in a decentralized manner. The Convex Index, built upon foundational elements of the already existing APY.Finance platform, will be launched, setting the precedent for the next generation of DeFi.
Phase II: Upgrade
A wrapped Index token will be released.
By simply purchasing the Index token, users can instantly gain exposure to the Index, greatly reducing complexity and cost. A proposal for profit-sharing with DAO members will be released, a benefit to DAO members made accessible only through the creation of the DAO.
Phase III: Scale
The Convex Index token will be bridged to other networks, and new indexes will be developed.
One of the most exciting opportunities The Convex Index presents is scaling through cross-chain expansion. Following The Convex Index, new and innovative indexes will be developed to target various demographics, including investors trying to build a robust and diversified portfolio. This can include cutting-edge indexes based on emerging trends such as option vaults, bribery vaults, and more.
Convex Index Litepaper
Visit The Convex Index Litepaper to learn more about the Convex Index, its mechanics, use-cases, wrapped Index token, and more.
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