Bankless BED Index

Methodology

The BED index is meant to track crypto’s top 3 investable assets.

1. Scope: The index includes the top 3 investable assets with real usage and large capitalizations around the theme of blockchain: BTC, ETH, DeFi (DPI).
2. Weighting: Neutral construction, equal weight
3. Rebalancing: First Friday of every month

The composition is:

• 33.3% Bitcoin
• 33.3% Ether
• 33.3% DPI

The underlying index is rebalanced after the close of trading on the first Friday of each calendar month. The Fund is rebalanced in accordance with its Underlying Index.

Component Selection

Market Requirements

• The components must have a Large cap valuation $25b+ [If an Index, the corresponding token market caps must have a sum of >$25b].
• The components must show signs of heavy usage either as a network (btc, eth) or smart contract theme (DeFi).
• The assets must have sufficient liquidity for initial inclusion and rebalances.

Safety Requirements

• Assets and themes within the Bankless BED Index should have vast, well-established safety guarantees.
• Any network/protocol must have conducted sufficient security audits and/or security professionals must have reviewed the protocol to determine that security best practices have been followed.

Index Maintenance

Determination Phase

The determination phase takes place during the fourth week of the month. It is the phase when the changes needed for the next reconstitution are determined.

Reconstitution Phase

The determination phase takes place during the fourth week of the month. It is the phase when the changes needed for the next reconstitution are determined.

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