Composite Token working as an Index Fund


#1

The idea would be to create a badge on the token² curated registry to set up a list of “good” tokens and create a token composed of multiple tokens.

Simple example, let’s assume assets are: PNK, REP and MKR.
Creating a INDEX token would require locking 1/3 ETH worth of PNK, 1/3 ETH worth of REP and 1/3 ETH worth of MKR. INDEX tokens could be burnt to retrieve those base tokens.

In order to keep the portfolio balanced, re-balancing could be done trustlessly using uniswap.

This would act and an index fund. People would then have a curated list of assets to buy which can be useful for new users coming into crypto as they may not have the required skill to do extensive research on assets to allocate their portfolio on.
The idea would be that someone, with little knowledge of blockchain, who would just wants to constitute a token portfolio would buy those INDEX tokens. Having multiple tokens would increase stability while still profiting from crypto growth level. Curation would avoid buying into shady assets.

Initially, the allocations would be of equal value. But we could then create a DAO setting up allocation percents.