EMI is the first true whole market index built on Ethereum. It is as a passive investment instrument for lazy investors and a benchmark for traders and analysts to beat.
EMI is the market index of things Built On Ethereum. It both represents the market and grows as Ethereum grows. When defining an index, you specify the size (in our case, how many Tokens to include) and the weights (the percentage one Token takes of the index).
How many tokens represent the market? Why is the S&P-500 500? Questions like these led us to an objective definition of the size of the index based on a procedurally defined ruleset.
Our goals:
Current Indexes such as DPI, fail at one or more of these criteria.
The procedure definition:
Who will use the index? We focus on two use cases. Those whom:
We use Enzyme Finance to deploy and manage the index, we trade assets using Enzyme's integrations with Dexes, and we define and deploy the index using HardHat scripts.
We plan on using a Token Curated Registry to Tag tokens with reasons for exclusion from the index. A lot of the functionality from Enzyme, such as reporting and tracking the index comes out of the box from them. Also, the Index design fits well for our model rather than using an AMM.