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Do not index
Do not index
What is NFT Index?
NFT Index (NFTI) is a digital asset index that tracks the performance of tokens in the NFT industry. It aims to give investors a diversified portfolio of NFT-related projects by weighting each token based on its circulating supply and liquidity.
NFT Index focuses on projects that are actively maintained and developed within the decentralized finance (DeFi) ecosystem. Built on Set Protocol's strong infrastructure, NFT Index offers a reliable way to invest in the growing NFT market through a single, consolidated token.
Features of NFT Index
- Capitalization-Weighted: Tracks the performance of NFT tokens based on their market capitalization and liquidity.
- Diversified Portfolio: Includes a variety of NFT projects, providing broad exposure to the NFT market.
- No Impermanent Loss: Designed to minimize risks associated with liquidity provision.
- Monthly Rebalancing: The index is rebalanced monthly to adjust for market changes and maintain optimal performance.
- Set Protocol Integration: Utilizes Set Protocol's V2 infrastructure for secure and efficient index management.
Pros of NFT Index
- Diverse Exposure: Offers investors a diversified exposure to the NFT market.
- Reduced Risk: Lowers the risk of impermanent loss usually linked with direct liquidity provision.
- Ease of Investment: Makes it easy to invest in multiple NFT projects with a single token.
- Regular Updates: Monthly rebalancing keeps the index relevant and up-to-date with market changes.
Cons of NFT Index
- Market Volatility: Like all crypto assets, NFTI is subject to high market volatility.
- Liquidity Dependence: The index's performance heavily depends on the liquidity of the included tokens.
- Limited Control: Investors do not have control over the specific tokens included in the index.
FAQs
What is NFT Index (NFTI)?
- NFT Index is a digital asset index that tracks the performance of various NFT-related tokens, offering diversified exposure to the NFT market.
How is the NFT Index weighted?
- The index is weighted based on the circulating supply and liquidity of each token, ensuring a balanced and representative portfolio.
How often is the index rebalanced?
- The index is rebalanced monthly to account for changes in token performance and market conditions.
What blockchains does NFT Index support?
- NFT Index primarily supports tokens on the Ethereum and Polygon blockchains.
How can I invest in NFT Index?
- Investors can purchase NFTI tokens on decentralized exchanges like Uniswap, which represent a share in the underlying NFT index.
