Announcing Bskt, a smart contract for creating decentralized token portfolios

CryptoFin is releasing Bskt, an Ethereum smart contract that lets you compose any number of different Ethereum (ERC20) tokens into a single Ethereum token.

Our whitepaper provides full details and you can create your own bskt using our source code.

As interest in cryptocurrencies has grown, thousand of tokens have been launched on the Ethereum blockchain. Our Ethereum contract allows anyone to compose any number of different ERC20 tokens into a single token. Gone are the days you have manage tens — or hundreds — of Ethereum tokens.

Much like an ETF, Bskt makes it convenient and cost-effective to hold a number of ERC20 tokens, while in actuality maintaining ownership of a single token.

Unlike traditional ETFs, users maintain custody of the underlying assets. Anyone can convert their Bskt tokens back into the underlying tokens without any external approval. Bskts also work with any Ethereum smart contract — and the holdings are fully transparent.

The ERC20-compliant Bskt contract we’re releasing allows one to:

• instantiate a custom Bskt with both pre-specified underlying tokens and a selected proportion,
• create Bskt tokens in exchange for surrendering underlying tokens,
• redeem Bskt tokens for the underlying tokens, and
• transfer the ownership of Bskt tokens

Visually, a Bskt can be created and redeemed in the following way:

This sample Bskt contract is composed of Token A, Token B, and Token C which can together be exchanged for bskt tokens.

While some exchanges are creating their own cryptocurrency indexes, they’re not tradeable. A Bskt token can be traded on exchanges across the world, providing large liquidity and an accepted standard token across exchanges. In the future, we’ll provide technical capabilities for rebalancing — and extracting tokens that are migrating off the Ethereum blockchain.

CryptoFin will be launching the first official Bskt instance soon. It will track some of the top ERC20 tokens, weighted by market cap. Sign up to be notified when we launch.

The CryptoFin team does not sell tokens, and to create your own token you must buy the underlying tokens — and make the relevant Ethereum call to bundle them. All code is provided AS IS — please use at your own discretion.

If you’re interested in using Bskt for your own purposes, please get in touch. Or join our Telegram group.

See the Bskt whitepaper and the source code.