Investors can create and participate in indices on Astra DAO’s decentralized platform. Index creators earn revenue through performance & early-exit fees, while index participants earn by holding iTokens (disclosure: this involves risk).
- Creators with profitable indices generate ASTRA earnings through fee revenue.
- Index participants earn by staking iTokens and benefit from free access to various investment strategies.
Astra DAO’s iToken protocol promotes a fair relationship between index creators and participants, providing sustainable returns to both sides.
On Astra DAO's decentralized index platform, the performance of each index determines the liquidity it receives - where higher performance equates to greater liquidity. This system incentivizes healthy competition and encourages innovation.
How to Create an Astra Index
To create an Astra index, navigate to the ‘Build’ tab in the site header. This brings you to the index creation page. The first tab on this page, labeled ‘select a token,’ contains the complete token options list. Select the tokens your index will hold and their holding percentages:
After selecting your desired tokens, choose your index rebalancing time and minimum total value locked. Each index must reach a minimum TVL before it can be offered on Astra DAO’s platform. Creators are required to disclose their index's TVL upon creation:
To complete the index creation process, creators need to include a name for their index and write a description that specifies their investment focus:
Importantly, all index creators must pay a fee of 5,000,000,000 ASTRA to list their index on Astra DAO’s platform.
Protocol Revenue Distribution
Astra DAO’s index platform aims for everyone to profit from winning investment strategies. By following all rules, investors can benefit from successful indices without paying 'out-of-pocket' fees.
By purchasing iTokens, investors agree to pay applicable performance and early-exit fees.
- Performance Fees: If iTokens are in profit upon withdrawal, a 20% fee is removed from the profit balance.
- Early-Exit Fees: If iTokens are sold before the completion of 6 months, then a 2% fee is applied to the user’s withdrawal balance.
Notably, when performance and early-exit fees are applied, 80% of each fee goes to the index creator, while the remaining 20% is re-distributed to ASTRA stakers.
Summary
Astra DAO facilitates a low-fee, decentralized, and transparent index platform. Astra DAO aims to help individual investors compete with investment funds by finding profitable investment strategies through free-market competition.