KnoxFund & KNX as an Index Token

0xB520
December 13th, 2021

What is KnoxFund?

Through our 3-stage process of Learn-Invest-Earn, KnoxEdge is able to create social strategies for crypto/metaverse index as a DAO. The first stage of Learn2Earn is conducted on our very own AI-powered and community-driven KnoxMarket. The second stage of voting and investing is carried out on Commonwealth and on-chain asset management protocols (Enzyme Finance, Enso Finance & Index Coop). The final stage of KNX book value redemption is done on Uniswap V3 and Symmetric DEX.

KNX is a cross-chain index token that tracks the performance of the underlying assets in KnoxFund and is a good instrument for investors to get exposure on cross-chain assets. Here are some of the benefits:

  • Access to community-curated crypto & metaverse investments
  • Buy, hold & redeem according to KNX book value in a cost-efficient way
  • Sound community-driven investment decisions made possible by AI-powered KnoxMarket Learn2Earn peer-prediction topics
AI-powered & Community-Driven KnoxMarket: https://knox.market/
AI-powered & Community-Driven KnoxMarket: https://knox.market/

KnoxFund AUM: $CELR, $AGLD, $DPI, $MVI, $CELO, $USDC

KnoxFund has recently established positions in $CELR, $AGLD, $DPI$ and $MVI. Not all positions are established on Enzyme Finance because Enzyme only supports ERC20 tokens that have Chainlink oracles. Therefore, KnoxFund assets can be found in two places:

If you are interested in choosing KnoxEdge DAO as your community-driven asset manager, we welcome you to deposit $USDC into KnoxFund on Enzyme Finance. There is a 20% performance fee, which will be streamed into KnoxFund for future investments.

KnoxFund Assets Under Management (AUM)
KnoxFund Assets Under Management (AUM)

What is KNX book value?

Because KNX is an index token, KNX is backed by KnoxFund assets and has a book value of:

KNX book value = KnoxFund AUM / KNX Circulating Supply

In the past 2 months, although there were KNX emissions on KnoxMarket, Ubeswap and Symmetric DEX, our liquidity pools have bought back a significant amount of KNX.

  • KNX buyback from Uniswap KNX/USDC pool: 1,250,878 KNX
  • KNX buyback from Ubeswap KNX/cUSD pool: 5,295,051 KNX

As a result, we have only ~10M KNX circulating supply. You can track real-time KnoxFund AUM, KNX circulating supply and KNX book value using this link: https://fundbook.knoxedge.com/. At an AUM of ~$470,000, this translates to a book value of ~$0.049.

https://fundbook.knoxedge.com/
https://fundbook.knoxedge.com/

Every 6 months starting in December 2021, 20% of KnoxFund will be cashed out for KNX book value redemption on Uniswap V3 (Ethereum Network) and Symmetric DEX (Celo Network). 80% of KnoxFund will be rolled forward for further growth. If overall crypto market grows, KnoxFund will grow and KNX book value will grow proportionally. As such, KNX is an index token tracking the performance of a basket of tokens, where the investment decisions are made by the community.

At any one time, the unvested team tokens can only comprise 35% of the circulating supply. For example, at current 10M KNX circulating supply, only a maximum of 3.5M KNX from the team allocation can be unlocked and released into the circulating supply. This is to ensure a fair distribution of KnoxFund to every KNX holder.

KNX Emission

To ensure KNX market price follows closely to KNX book value, a dynamic KNX emission scheme is adopted, which is inspired by Ampleforth rebase mechanism:

  • When KNX market price < KNX book value (now): stop KNX emission on KnoxMarket* and reduce liquidity mining emission**.
  • When KNX market price > KNX book value: continue KNX emission on KnoxMarket and liquidity mining programs.

*In lieu of the 60k KNX/topic rewards, the 60k KNX will be used to provide liquidity on KnoxMarket. Bidders can organically win KNX from LPs & other bidders by submitting high-quality, peer-prediction thoughts.

** Ubeswap KNX-CELO pool weekly rewards are either 30,000 KNX (below book value) or 300,000 KNX (above book value).

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