Greetings Publish0x community, today I want to introduce the newest crypto index creation and management platform: Phuture Finance. As some of you may notice, my latest posts are mostly about Index Coop & its DeFi, Metaverse, or Web3 centering indexes. In this post, we'll dive into Phuture Finance, its product tracking the performance of the top 10 DeFi tokens according to the market cap, and their unique Index Creator Tool. Now, let's start with the basics...
What is Phuture Finance, briefly?
Phuture Finance is a decentralized application created to manage different crypto indexes at the same time. On Phuture Finance, you'll be given the right to both invest in the existing indexes and create another DeFi-naive index according to your perspective. So theoretically, the total number of indexes created within Phuture Finance is unlimited. The main purpose of Phuture Finance is to provide an easy for anyone in the crypto ecosystem to get exposure to any kind of tokens. To provide the best environment, the Phuture Finance team covers rebalancing, reweighting, and recapitalization.
The title of this article fits best with the aim of the core team behind Phuture Finance: ''reDEFIning the asset management''. It's said that nearly half of the funds of the S&P 500, one of the biggest stock markets in the US, are held under many different funds. The Vanguard Group leads them with over $6T assets under their management. So, we need indexes in the cryptosphere as smart as possible. With this idea, they found the PhutureDAO. So the idea, then community, then token!
‘It shouldn’t be: Token -> Community -> Product’
‘But rather: Product -> Community -> Token‘
With this model, the Phuture Finance team puts people to the first stage as the Web3 sector all do. The token reflects the Ethereum chain tokens or ERC20 ones. So, everyone can create an index with this member-first model. The only requirement is to select the index allocations from ERC20 tokens. At that point, Phuture Finance provides an API not to find the best price per token but to find the best fee-adjusted price. It's done by 0x API. By doing so, index managers are able to bring the most accurate number of tokens into the index, itself.
What is the Index Creator Tool and How It Works?
As I said above, Phuture Finance works as a management protocol for DeFi indexes comprehensively from the beginning to the end. Now the steps are divided into 2 phases: creation and management of ongoing index. In phase 1, you're in the direction. Determine which tokens will be granted allocation and how much. Then the remaining technical and/or developmental work will be done by Phuture Finance, itself by utilizing the Index Creator Tool. To complete phase 1, you should create a PIP (Phuture Improvement Proposal), post it on Forum, then concentrate at least 30% of circulating PHTR, the native token of Phuture Finance, and make it get at least 50% FOR on Snapshot voting. I'll explain the details of governance tokens and PIPs later on in the PHTR section. Please keep reading about phase 2.
In phase 2, Phuture Finance first tries to make the assets under management optimized. Asset optimization is a technique that maintains and keeps the lowest possible liquidity on Phuture itself, then sends the remaining assets to external yield generation protocols. By doing so, users receive additional rewards in addition to the possible positive return of the index. But to send tokens to external protocols, your index should reach a threshold point that can be used to mark the point that indicates the lowest possible liquidity mark for the sum of redemptions and index rebalancing. Now, you can use your assets with the ''Optimal Reserve Ratio''. In the last step of phase 2, the corresponding index will be rebalanced, reweighted, and recapitulated regularly on a predetermined time interval.
There are lots of criteria to be determined before the index launch. For example the creation/redemption fees. By default, there are 0.2% minting, 1% redemption, and 5% yield generation fees. Please check the documents page of Phuture Finance to learn more.
Why Choose Phuture Finance?
- Flexible Index Design
- Optimized Asset Productivity
- Data for Index Weights
- Optimized Rebalancing
- Asset Optimization
The Governance Token, $PHTR
$PHTR is the native token of Phuture Finance. It has several features to be utilized. For example, you can stake PHTR to receive ePHTR, which can be used to begin PIPs later. At the same time, PHTR stakers receive yields, as well. Additionally, if you are a PHTR-ETH liquidity provider, you'll earn PHTR in return. The total PHTR supply is capped at 100,000,000 units and there are 4 different allocations of them: Ecosystem, Investors, Foundation, and Liquidity Incentives. Check the picture below...
Even Phuture Finance is governed by community members under the name of PhutureDAO, everyone can't propose a proposal. There are requirements to create a new PIP. First, it should be discussed on Discord servers (Marketing-Growth, Business-Development, and Product). Then you should allocate at least 75,000 ePHTR (staked PHTR) to start the proposal voting. To be seen as an active proposal, the total amount of voting ePHTR should exceed 30%. And in the last step, your proposal should get at least 50% FOR to be approved.
The token sale happened this year In May on the Polkastarter platform at 0.3$ per PHTR. And now, it's trading around 0.35$ per PHTR.
If you want to catch up with my timeline, don't forget to follow me on Twitter and Noise.Cash. If you're keen on learning more about Phuture Finance, please head over to their Discord server and give follow the official Phuture Finance Twitter account.
*This article is created to spread the awareness of Phuture Finance and its features by utilizing my own experiences and Phuture Finance Blog. None of the words above contain any kind of investment advice! Please DYOR (Do Your Research) before investing.
**If you are interested in writing articles about ANYTHING on Publish0x, you can follow this link.
