The Problem
Existing crypto index funds fall short of TradFi standards. They often rely on centralized custody, which breaks the promise of decentralization, or use wrapped assets that introduce complexity, high gas fees, and counterparty risks.
Current Problems
| Too Centralized | Too Complex | Too Inefficient |
|---|---|---|
| Off-chain custody | Wrapped assets | Multiple transactions |
| Trust reports | Bridge risks | Multiple gas fees |
| No self-custody | Confusing UX | Manual rebalancing |
| Accredited investors only* | Single-chain | Time-consuming |
Centralized Options
Bitwise, Grayscale, and similar products:
- Off-chain custody
- No on-chain verification
- High fees (2-2.5% annually)
- Limited accessibility (accredited investors only)
Early On-Chain Attempts
Previous decentralized solutions suffer from:
- Wrapped assets (not native crypto)
- Single-chain limitations
- Complex minting processes
- No over-collateralization
DIY Portfolios
Building it yourself demands:
- 10+ transactions
- Gas fees for each
- Constant monitoring
- Hours of work for something that should be simple