ODeFi index

About Index

An index is a way to track and measure the performance of a basket of target assets in a standardized way. A price index can be based on the prices of a single item or a selected group of items, called a market basket.The single item price index reflects the comprehensive price of a item in different markets, while the comprehensive market index reflects the comprehensive price of several items in the overall market or a representative subset. The index price calculation method is usually the weighted average price of these market items.

For example, the Shanghai and Shenzhen 300 ETF is an index fund composed of 300 high-quality companies selected in the Shanghai and Shenzhen stock markets. Another example is the chip ETF, which is an industry index fund composed of core companies selected in the chip industry.

About ODEFI Index

The ODEFI index is the price index of a basket of DEFI items in the Organix protocol portfolio. Users who purchase or trade ODEFI can enjoy the benefits of the price index increase, and vice versa.

The underlying assets of the ODEFI index initially consisted of the top 7 DEFI project tokens in the global market. The index components and weighting details are shown below:

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Initial token price: The weighted average price of the tokens on several major exchanges provided by the Organix oracle at 00:00 Singapore time the day before the launch.

The weight of each tokens: as shown in the picture above

Price factor=Weight/Initial price

Index price=Price factor*Latest price

ODEFI latest price = the sum of all token's index prices

Components and weight adjustment

In the early stage, the Organix Foundation will make regular or irregular adjustments according to the actual operation situation. In the later stage, the DAO will be adopted to operate. It will be subjected to the community initiates proposals and votes to adjust the composition and weight.

Measures for handling special cases

Since the cryptocurrency index component has the characteristics of the blockchain, the following principles should be followed when the component token forks/airdrops/mapping events occur:

Soft forks or hard forks that do not generate new token will not be adjusted

In an airdrop/mapping event, if a new token is not generated but the original token is converted to a new token according to a certain ratio, the component token is replaced with the new token, and calculate by multiplying the latest token price with the mapping ratio, and perform normal position adjustment according to the index weighted target during the next adjustment period.