$IBCX: The Interchain Index Token
$IBCX is the interchain index token governed by Osmosis’s ION DAO, and it aims to provide new opportunities to the Cosmos Ecosystem
Background: Cosmos Needs an Index Token
The Cosmos ecosystem is a vibrant community with more than 260 projects in service or under development. As the leading proponent of the Application-specific Blockchain (AppChain) thesis, Cosmos has successfully seeded the notion of “One Blockchain for One App” in the industry in its short history. After years of experiencing various limitations of the one-for-all monolithic blockchains, more and more industry participants are beginning to resonate with the need for an infrastructure that caters to the application’s specific functionality. While numerous Cosmos builders succeeded in reaching this first milestone, it is true that acquiring their tokens and sharing their upside is still challenging for the general public.
For the public, Cosmos is still represented by $ATOM. Our challenge: Can a single token adequately represent an ecosystem that aims to enable multiple projects and their respective tokens to flourish in an optimized fashion? In other words, it’s not fully convincing to say that the main token of the Cosmos Hub captures the values of an interchain AMM (Osmosis), a smart contract AppChain (Juno), and an EVM scalability solution (Evmos). As an alternative, we would like to propose an index token that’s composed of these tokens and is transparently governed by the community via a DAO.
So What is $IBCX About?
$IBCX is a Cosmos index token that’s designed to benchmark the leading Cosmos tokens’ performances. It aims to achieve this by procuring and maintaining those tokens as its collateral. $IBCX price is dynamically calculated based on the spot prices of its selected components, or the collateralized Cosmos tokens. The weight % of each token is determined and periodically rebalanced based on the results of the ION DAO’s governance voting. $ION is a native token of Osmosis, and ION DAO plans to fully utilize the liquidity of Cosmos’s #1 AMM to ensure the successful operation of $IBCX.
$IBCX Value Propositions
We are in the process of developing the following value propositions:
- Diversification and Security: Gain exposure to the leading projects curated by the Cosmos community. All component tokens are fully collateralized
- Convenience: No need for strenuous research of existing and new projects and manual portfolio rebalancing
- Strategy Customization: We’re working on building and offering various portfolio strategies that cater to different appetites. More details to follow soon
Mint $IBCX
Accessibility is one of the key aspects of $IBCX. We plan to enable our users to easily mint $IBCX with Cosmos tokens that are already available on Osmosis, such as $USDC, $OSMO, and $ATOM. When a user submits an order with one of the above tokens, the smart contract executes collateralization of the component tokens and returns the newly minted $IBCX to the user. Essentially, the new $IBCX gains performance exposure of the collateral tokens to the extent of the total amount of original tokens submitted for the swap.
Burn $IBCX
Operating under the same logic, burning $IBCX will yield the user the underlying assets at the predefined weight ratio. Then the underlying assets would go through an auto-swap function to return a single token, starting with $ION, $USDC, $OSMO, and $ATOM…
Conclusion (…and a few ideas on $IBCX’s possibilities)
$IBCX is being developed with the goal of providing exposure to Cosmos ecosystem’s fundamental values to everyone. We plan to bootstrap this journey by leveraging Osmosis, and we aim to ensure transparency in operation by leveraging DAO governance and the Cosmos community.
In addition, however, $IBCX can be more than just an index and offer values that traditional indices structurally could not. For example, $IBCX can provide innovative portfolio strategies that utilize features such as SuperFluid staking, liquid staking and smart contract developer incentives that are currently offered by Cosmos projects. To do this, our team is actively communicating with various Cosmos projects for future collaboration opportunities.
You’re Welcome to Participate!
As previously mentioned, $IBCX will be governed by ION DAO. More specifically, the governance participation will be done via $ION, an Osmosis native token with a limited supply of 21,294. Community participation is the key to the success of $IBCX. Please find out more here.
Community Links
Meet the 21,294 club.
