🚀 Not Your Grandpa's Mutual Fund
Crypto Index Funds and the Future of Finance
Happy Monday. Zoomer Money has been under construction recently to give Zoomers the best Stock, Crypto, and DeFi content out there!
In today’s edition, it’s crypto heaven:
A dive into crypto indexes (or indices if you’re a math nerd)
How Indexed Finance is changing the index game
The historic DEGEN index
“Age is something that doesn’t matter, unless you are a cheese”— Luis Bunuel
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Kimchi Premium: The price gap of Bitcoin on South Korean exchanges compared to the international price a.k.a ‘The Kimchi Premium’ reached it’s widest since 2018
Coinbase Goes Public: This week, the centralized crypto giant gets an IPO, but still doesn’t have a phone number
Not Your Grandpa’s Fund 👴🏼
“Don’t invest in a single stock, invest in index funds!”
It’s such a familiar line, and honestly you’re not sure where you heard it first, but you’re pretty sure it was from an old dude— an old dude who definitely isn’t living it up in the Bahamas right now.
That same old dude probably told you not to invest in crypto (iT’s NoT rEaL mOnEy!), and after reading this article you can confidently show him that your crypto indexes are outperforming his diversified retirement account by such a large amount that it’s not even fair.
Indexed Finance, The Next Vanguard?
Launched in December of 2020, Indexed Finance is a protocol that provides passive portfolio management for crypto investors, paving the way for the future Warren Buffett’s of crypto.
In the U.S., indexes are a 4 trillion dollar asset class that make up about 14% of the stock market. That’s big.
Since 1960 retail investors in the stock market have had access to indexes via Exchange Traded Funds (ETF’s), a ‘basket’ of stocks rolled into one. Usually those stocks have something in common like a particular sector, or rapid growth, or the futures of lean hogs… or whatever. And all need to be managed by someone, usually a group of people, who most likely work for a company that takes a management fee. That’s active management.
And that’s where the passively-managed Indexed Finance comes in. At the time of writing Indexed has 5 products that track a specific sector’s performance in the cryptocurrency industry (total value locked is at time of writing, April 2021)
DEFI Top 5 Index (DEFI5) - $12.4M TV
DEGEN Index (DEGEN) - $8.4M TVL
Cryptocurrency Top 10 Index (CC10) - $7.3M TVL
NFT Platform Index (NFTP) - $1.5M TVL
Oracle Top 5 Index (ORCL5) - $752K TVL
The $DEGEN Index 🤡
Up and coming crypto storyteller redphonecrypto and 0xBay (Your humble Zoomer Money CEO) teamed up to create the DEGEN index, an alpha-seeking basket of ten small to mid size projects with lots of upside potential, represented as one ERC-20 token.
If your head is spinning from constantly searching for, analyzing, and monitoring lower market cap tokens, DEGEN may be the solution: a reliable and accessible way to gain exposure to smaller projects with lots of upside potential, hand-picked by the best group of crypto brains out there.
The $DEGEN token can be minted directly on Indexed.Finance using the underlying tokens or bought on Uniswap.
Obviously, I like the crypto. – Bay
How do I get in?
Here’s The Step-By-Step: 👇🏼
1. Buy some Ether on moonpay
(keep in mind you will need Ether for the Ethereum network fees, so it’s important to always hold some Ether)
2. Send your Ether to a wallet (we recommend a hardware wallet like Ledger) if you don’t have a ledger, you can create a hot wallet with MetaMask (chrome extension) or Rainbow Wallet (iOS app)
3. Once you have purchased some Ether and have your wallet set up, you’re ready for the next step
4. In your wallet, copy the address (it looks something like: 0x71E7ab88b.. ), then on MoonPay paste that address into the input box (MoonPay will ask you “where” you want to send the Ether that you are buying)
5. Once you’ve sent Ether to your wallet it should take anywhere from 5 to 10 minutes to arrive. When it does, you’re ready to swap for a crypto index!
6. Now that Ether has landed in our wallet, we want to connect our wallet to the decentralized exchange Uniswap. Once connected we can swap our ether for any other Ethereum based token that exists!
7. If using Metamask make sure to copy and paste the token address of the token you are swapping for in the custom token tab in order to be able to see the coins you just bought!
As always, DYOR before investing! 🔬
Disclosure: The author holds a long position in both the Indexed Finance platform token ($NDX) and the $DEGEN token, not to be taken as financial advice.