SEI(Solanium Ecosystem Index) is an IDO Index on Solanium (exchange on Solana) which is powered by MatrixETF, its goal is to track and reflect the crypto performances of the projects on Solanium. The Index is constituted by a basket of Token assets, users don’t have to purchase these individual Token from exchange. Only by the simple operations such as purchasing $SEI, there will be an investment exposure of Solanium and Solana Ecosystem to users,
who can achieve various asset placements and enjoy dynamic investment opportunities from the Solana prosperous ecosystem.
Based on Solana blockchain ecosystem, until now we can see there are 8 projects have been successfully launched on Solanium, they are Port Finance(PORT),Cropper Finance(CRP),Cyclos(CYS),MatrixETF(MDF),Waggle Network(WAG),GooseFX(GOFX),Project SEED(SHILL),Cryowar(SWAR).
We will standardize this index based on these projects, you can see their capitalization ranking as below:
Comprehensive considering of all kinds of factors such as crypto project performances, project market capitalizations, project development trends, project status in crypto market and technology(limitation of Solana transaction size), we finally selected 8 Constitutional Tokens to constitute SEI fund: SOL,SLIM,GOFX,CYS,PORT,WAG,CRP,MDF. They will be utilized to track and reflect the IDO project performances on Solanium.
Notice: Since CWAR and SHILL are the fresh projects with higher than 10000% ROI on GameFi, we think they won’t rocket up with more potential in the short term future, they might need more fluctuation and development to stable their infrastructure, this is why we backed them as the alternative Token for future Rebalance SEI constitutions.
SEI Weighting Proportions
When we compute the weighting proportion of each SEI constitutional token, MatrixETF uses Fundamental and Market Capitalization weighting methods, which weighted by 30% of Fundamental and 70% Market Capitalization Square Root to account the allocation and weighted proportion of each basic asset.
Fundamental Weighting Method
According to MatrixETF Index Methodology, there are 5 standards to filter in Fundamental Weighting:
- Token Economic Model
- Project development
- Security of protocol
- Token trade risk
- Community base
According to 5 features of Fundamental Weighting, we compute MSI component token weighting proportions as below:
Market Capitalization Weighting Method
Market Capitalization refers to the project circulation market capitalization, according to the authoritative data of CoinGecko，Coinmarketcap and Cryptorank, to compute circulation market capitalization by obtaining Token prices and circulation data.
There are 3 market wide accepted methods to weight the project market capitalization: Market Capitalization Weighting, Market Cap Square Root Weighting and Equal Weighting.
As we know that SOL is the basic token on Solana which weights the most market share in the Solana ecosystem, in this case we decide to provide SOL with 50% market cap weighting. In addition, Solanium is the biggest and most celebrated IDO platform on Solana, and SEI is the index based on Solanium IDO platform, so we decided to provide SLIM（Solanium Token) with a high market cap weighting as 15%.
Since IDO projects usually are fresh projects within 6 months, we will compute the data by Equal Weighting Method in the beginning, and will adjust our weighting method and constitutional tokens by the development of the project performances.
Final Weighting Proportion
According to the weight method of 70% Market Capitalization+30% Fundamental Weighting, we comprehensively compute MSI component token final proportions as below:
- Since there is a block size limitation on Solana, one ETF index can only contain 8 constitutional tokens.
- This is the initial scheme of Constitutional Token and Market Cap Weighting, we might adjust some parts of SEI in Rebalance according to different project performances.
- Along with more IDO projects coming in Solanium platform, we will issue the second IDO Index based on Solanium in the future, stay tuned with us.
Solanium is the go-to platform for the Solana blockchain. Invest in the hottest Solana projects, stake your tokens, trade on our DEX, manage your Solana wallet and participate in our (future) governance.
MatrixETF is the next generation of decentralized ETF platform to run the cross chain，which goal is to establish a decentralized, automated, personalized and diversified portfolio for users, as well as help users easily enjoy long-term, stable and efficient financial services.