$DATA is a basket of 7 tokens designed to provide accessible, passive exposure to the second largest web3 sector, the data economy. It is also the first multichain index i.e includes non-ERC-20 tokens as well through the integration of Ren Protocol. While decentralized finance (DeFi) is disrupting traditional banking and financial services, the data economy is disrupting the data monopolies built-in Big Tech over the past 20 years. For latest information please check out the 2022 Methodologist Guide to the DATA Economy
The Data Economy Index was created by Thomas Hepner and Kiba Gateaux and launched through Index Coop. Additionally, the creators of DATA Economy Index and Index Coop partnered with Ren for inclusion of Filecoin in $DATA by using the Ren protocol.
Index Coop: It is a decentralized autonomous organization (DAO) that exists to create and maintain crypto-native structured products built on DeFi asset management primitives. As a DAO, Index Coop is governed by INDEX token holders. Members use the $INDEX token to propose and vote on new products, the allocation of the treasury, and the future direction of the DAO. Index Coop has had a variety of successful products to-date, including: the Data Economy Index, DeFi Pulse Index, Metaverse Index, Bankless BED Index etc.
Data Economy Index: The data economy is an ecosystem of data-based products and services. It is growing exponentially in both usage and market value. Data economy protocol tokens have reached market capitalizations eclipsing those of even the most valuable DeFi networks.
Ren Protocol: Ren is an open protocol that enables the movement of value between blockchains. RenVM serves as a crucial conduit for the data economy by bringing non-ERC assets to Ethereum, so baskets such as the DATA index can function in a fluid and permissionless fashion. Moving forward, the DATA index will leverage RenVM to incorporate other non-ERC assets into the index.
The creators of Data Economy Index partnered with Ren to include Filecoin, which is a non-ERC20 token in the $DATA by leveraging the Ren Protocol.
DATA Economy Index Allocations
$DATA will use circulating market capitalization to determine the weight of each token included in the index. The weight of each token within the index will be as follows:
The Data Economy Index caps each token’s respective weight at 25%. Excess weight for a given token will be redistributed to the remaining components of the Data Economy Index on a weighted basis. This same process will be repeated for every token exceeding the 25% allocation cap.
The Data Economy index is represented by a fully collateralized ERC20 token and is available for purchase on Sushiswap, Index Coop, and TokenSets.
Additionally, Wintermute is the official market maker for Index Cooperative and the $DATA Index! It supported the launch of the $DATA Index with $1 million of seed liquidity for the launch on Sushiswap.
In the case of high slippage for large trades on DEX, exchange-issuance can be used via the DATA TokenSets page or visit Wintermute page for better pricing.
The $DATA index is data-centric and chain agnostic.
It is the first decentralized index to capture the growth of the data economy and also the first to include non-Ethereum-based tokens.
DATA includes tokens that provide data-based products or services across blockchains. This means that the success of Chainlink, the Graph, Filecoin, etc. is independent from Bitcoin, Ethereum, Solana, Cosmos, and other cryptocurrencies. These tokens are inherently multi-chain and grow along with the entire crypto industry’s success.
Additionally, Data Economy Index has partnered with Ren Protocol, a bridge between blockchains, to bring Filecoin into the DATA index on Ethereum.
Note: Filecoin is a blockchain with its own native cryptocurrency that would not have been available in the DATA index without this partnership.
Beyond its core value proposition, there are 5 major benefits of using DATA:
$DATA is maintained quarterly in 2 phases:
During the determination phase, the tokens being added and deleted from the index calculation are determined during the final week of the quarter and published before quarterly rebalancing.
2. Rebalancing Phase
Following publication of the determination phase outcome, the index composition will change to the new weights during the first week of the following quarter.
Index Coop is a decentralized autonomous organization (DAO) that powers structured decentralized finance (DeFi) products and strategy tokens using smart contracts on the blockchain. We offer a suite of sector structured products, leverage and inverse products, and yield-generating products. We aim to create products that are simple to use, accessible to everyone and secure. Our products are built on Set Protocol, a twice-audited, self-custodial DeFi tool that allows for the creation and management of Ethereum-based (or ERC-20) tokens. Among users, partner protocols, and our composable products, Index Coop maintains one of the largest partnership networks in the DeFi ecosystem.
Disclaimer: This content is for informational purposes only, and should not be construed as legal, tax, investment, financial, or other advice.
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
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