NFT Tracking Metaverse Index (MVI) Launched by Index Coop
2 min readThe non-fungible token (NFT) space continues to evolve and flourish. Today sees the launch of a new tool, called the Metaverse Index (MVI), to help track these NFTs.
The new Metaverse Index will follow the leading tokens and projects in the NFT and virtual metaverse space. It has been launched by Index Coop, a DAO specializing in creating crypto-economy index tokens.
In the early years, cryptocurrency indexes like C20 gave investors broad exposure to the top-performing assets in the industry. Then came the DeFi indexes such as the DeFi Pulse DPI which did the same for DeFi-related tokens.
Now the first NFT-focused index has been launched. It aims to provide exposure to the top assets in the burgeoning digital art, collectibles, and virtual metaverse scene.
1/
Attention players, creators & collectors. Today we announce the Metaverse Index $MVI! pic.twitter.com/slmqt68f3k
— Index Coop (@indexcoop) April 7, 2021
Attention players, creators & collectors. Today we announce the Metaverse Index MVI launches on TokenSets
The MVI launched on the Tokensets platform. It uses Set Protocol smart contracts with 15 metaverse and NFT tokens listed. These include Enjin Coin, Decentraland, SAND, Axie Infinity, RedFOX Labs, and a number of others.
Each month, it analyzes factors like liquidity, market cap, and a number of other determinants, before rebalancing. ENJ currently has almost 20% exposure while MANA is second with just under 12%.
It also launched with liquidity mining incentives. It offers stakers of the new MVI/ETH pool LP tokens that receive INDEX rewards during a 90-day program. These tokens are from the Index Cooperative and different from the MVI tokens which are for the index itself.
NFT token screening and weighting
Speaking to William Peaster in the April 8 Bankless newsletter, co-authors and managers, Dark Forest Capital and Verto0912, explained the weighting and screening processes for token inclusion.
Screening is done by Coingecko category for Non-Fungible Tokens, Entertainment, Virtual Reality, Augmented Reality, and Music. The tokens need to be ERC-20, have a circulating market cap above $30 million, and have sufficient liquidity on decentralized exchanges.
“The MVI uses a combination of square root of market capitalisation and liquidity weighting to arrive at the final index weights. We believe that liquidity is an important consideration.”
Since the MVI holds all of these NFT-related tokens, the project will work on finding a way to create utility in these underlying ecosystems.
At the time of press, the MVI token was trading at $100. It has begun to settle over the past three days after falling from the $150 it reached just after launch. INDEX prices also dropped 4% to $41.40 according to CoinGecko.
The post NFT Tracking Metaverse Index (MVI) Launched by Index Coop appeared first on BeInCrypto.
