Avalanche Mainnet

Avalanche Social Index

The aHYPE portfolio tracks socially active cryptos, weighted by social scores and rebalanced by arbitrageurs, offering easy exposure to popular tokens.

The Avalanche Social Index (aHYPE) tracks the performance of a portfolio composed of the most socially active cryptocurrencies in the last 30 days. This portfolio is weighted according to the social score made available by Heimdall and the technology provided by the Kassandra Protocol. The portfolio is a SIP (Smart Index Pool) and is rebalanced by arbitrageurs just like a usual liquidity pool. The index is accompanied by its own token $aHYPE, allowing investors to buy the index by purchasing the token, just like an ETF.

## Goal
The index primary goal is to offer exposure to the most popular cryptocurrencies in a simple and easy way, the investor needs only to acquire the index token. With this goal in mind it is paramount to develop a tool which can measure the popularity of a particular crypto, this tool is the creation of Heimdall and it is the bedrock of the index.

## Dynamic Weights

The main aspect of the Configurable Rights Pool (CRP) is that weights are not fixed, but change according to the social score dynamics in order to keep track of the most active tokens.The frequency and the amount in which weights are updated for each cryptocurrency inside the CRP directly correlate with the value of the fund. For any weight change can offer the opportunity for arbitrage, that decreases the value of the pool, and gas costs are incurred to write the new weights on the blockchain. These gas costs will be covered using funds from a wallet managed by the DAO and funded by the exit fees collected from users. Losses in arbitrage are alleviated by swap fees and the smart allocation of the assets.

In general terms, the logic behind updating weights is the following:

1. Social score data is retrieved using Heimdall API.
2. Using API3 we make the social score data available in the blockchain.
3. The new data is used to define the new weights in the CRP, incurring in gas costs.

For the reasons above, we have determined that weights are to be updated every 24 hours. To avoid large jumps that could lead to large impermanent loss and to make the changes more predictable, weights smoothly change on each block. To make this change in the blockchain, arbitrageurs call pokeWeights to take advantage of arbitrage opportunities created by those weight changes.

## Index Maintenance

At first, the Avalanche Social Index will have a whitelist already determined by the Kassandra Foundation. However, as mentioned before, the $KACY token holders will be able to alter the whitelist if they managed to reach a consensus.It is required that any token to be added to the whitelist must be available on the Avalanche blockchain and meet other conditions such as:

1. Accurate market data. Price, market cap and circulating supply.
2. The project’s protocol must have significant usage.
3. The project’s protocol must not be insolvent.

The initial whitelist will be composed of the following cryptocurrencies:
1. wAVAX, JOE, KACY, PNG, QI, XAVA, CRA

## Index Value
The value of the index is given by:
![link](https://storage.googleapis.com/logos-kassandra/social-index.png)

View [aHype](https://kassandrafoundation.medium.com/avalanche-social-index-4042a823c972) documentation

Price

AUM

VOLUME

RETURN

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