Previewing The RWA Index Presale And PRT Incentives

The Fortunafi Real World Assets Index (RWA) allows token holders to gain diversified exposure to the RWA sector. RWA will be composed of tokens from projects and protocols that concentrate on tokenizing offchain assets. While tokenizing real world assets is a nascent category, it has more near-term potential than many other cryptoasset sectors.

‍Composition

‍The potential launch composition, as of 22.05.2024, will be:

Methodology

‍The methodology is provided and managed by Fortunafi.
Reconstitution and rebalancing will occur quarterly, and assets must also meet the following criteria to be eligible:

• The underlying protocol must be listed on DefiLlama.
• The 90-day moving average of the protocol’s Total Value Locked (TVL) must exceed $30M.
• The 90-day moving average of the token’s daily trading volume must exceed $500K.
• The protocol must be RWA-centric as determined by the methodologist.
• The protocol and tokens must pass a manual review process to determine whether or not it is a good fit.
• The protocol must have publicised audit(s).
• The token must be available on Ethereum mainnet; wrapped or bridged tokens may be considered for inclusion.

RWA will have weightings proportional to the underlying token’s market capitalisation. Individual components will be capped at a maximum weight of 25%; excess weighting is evenly distributed amongst tokens with weights < 25%. Fortunafi, the methodologist, has the discretion to add or remove components based on subjective factors, including, but not limited to, a project’s active development, its stated commitment to the RWA space, etc. Commentary on the index’s monthly and quarterly performance can be viewed in Fortunafi’s monthly RWA & Stablecoin Recap reports and quarterly State of the Industry reports.

‍Fees

• 1.95% Streaming Fee (annualised).
• 0.10% Issuance Fee.
• 0.10% Redemption Fee.

Distribution & liquidity

• RWA can be issued or redeemed on Ethereum Mainnet.
• Index Coop will also provide liquidity on Arbitrum and/or Base.

Presale & PRT opportunities

Learning from the hyETH presale, which succeeded but disproportionately rewarded a single action (deposit and hold) with a large amount of PRTs, the DAO has set these PRT incentive opportunities for RWA which seek to incentivise a broader range of value adding actions:

1. Presale
   Where 10% of the 100,000 PRTs will be given out in a tiered structure (more below) which rewards earlier depositors more than later depositors over a 30 day period.
   
   
2. Other value adding actions
   Where a further 15% of the RWA PRTs will be given out for actions including but not limited to:
   1. Providing liquidity.
   2. Securing an oracle.
   3. Opening and incentivising a DeFi lending market for RWA.

More information on this 15% of PRTs will be shared later, pending a successful presale.

Presale

As with the first presale (for hyETH), the Index Coop is looking for partners to deposit into the pre-launch RWA token, which will be rebalanced into the underlying RWA tokens if the presale is successful and pre-launch preparation is complete. To motivate presale deposits, the Index Coop is offering Product Revenue Tokens (PRTs). 

By way of reminder, product revenue has historically been sent to the Index Coop Treasury. With PRTs, product fees will now be sent to PRTs via a staking pool. A capped number of 100,000 RWA PRTs will be issued, so an RWA PRT holder’s revenue split is the percentage of PRTs they own (e.g. XXX/100,000). PRTs are ERC20 tokens, and holders will stake their PRTs in a staking pool to receive revenue.

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Holders of PRTs not only effectively receive a fee rebate on their position but also receive upside in the product’s success. The Index Coop will retain 65% of the PRTs for RWA and Fortunafi is incentivised with PRTs also - a fixed percentage to start, with performance based unlocks of further PRTs. Fortunafi’s PRT incentives are for its value add regarding methodology, data and analytics, marketing and BD.

‍Presale details and rules

• Deposits open on 19th June through the Index Coop app, with no minimum deposit required.
• If RWA does not hit its presale goal at the end of the presale period, the product will not be launched, and PRTs will not be distributed. Presale participants will be free to withdraw their deposits from the pre-launch RWA token.
• At launch, presale deposits can be made in wstETH. Following the launch, Index Coop plans to roll out support for deposits with WETH, ETH, USDC, and USDT as well; however, wstETH will remain the sole component of the index during the presale and pre-launch periods; at the end of the pre-launch period, wstETH will be rebalanced into the RWA components.
• Presale depositors can earn up to 10% (10,000) of RWA PRTs. The presale is structured in tiers, rewarding early depositors with more PRTs per wstETH in the initial tiers. As each new tier is reached, the number of PRTs distributed to that tier decreases by 10%. The total number of PRTs a depositor receives is equal to the sum of their contributions across the tiers. Here’s a breakdown of the deposit tiers:

• Example: If a depositor makes two deposits: 50 wstETH in Tier 1 and 50 wstETH in Tier 3, they would receive 488.5 PRTs from Tier 1 (50 wstETH * 9.77 PRTs/wstETH) and 395.5 PRTs from Tier 3 (50 wstETH * 7.91 PRTs/wstETH), totaling 884 PRTs.
• Deposits will not be capped; however, the total number of PRTs distributed will be capped at 10,000. 
• Depositors are encouraged to attract more deposits, as each new contribution increases TVL and boosts revenue at launch, resulting in more valuable RWA PRTs.
• Early withdrawal is permitted but means foregoing eligibility for PRTs on the withdrawn assets.
• 1/4 of earned PRTs unlock each month during the post-launch period. Depositors must hold through the entire post-launch period to earn 100% of earned PRTs.

Eligibility

• The staking pool for PRTs - which will be available in the Index Coop app - will not be available to Restricted Persons (including US Persons) as defined here. Restricted Persons should not stake PRTs in the staking pool.
• PRTs will be claimable via MERKL during the post-launch period.
• PRT staking will be made available in the Index Coop app at the time of the first PRT distribution, or 6th September.
  

Liquidity & price discovery

‍Index Coop and market making partners will enable one or more markets for RWA PRTs, to enable 24/7 price discovery. Details will be shared nearer the time.

Additional Resources

For any other questions regarding RWA and the upcoming presale, check out our dedicated FAQ or reach out directly to the team via The Index Coop Discord.

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