The Layer 2 Index is designed based on market size, and considers the maturity of the projects involved. You may import the Token List, into your favorite dex.
Periodically new tokens may be added to the index. This will require adjusting the balance of the index, and an announcement of such a decision will be made, and then subsequently the composition will be adjusted for the Layer 2 Index. Tokens that no longer meet the objectives will be removed with care so as to minimize market disruption.
The aim of the Layer 2 Index, is to provide an easily liquid entry point for these blockchain projects at the existing market price. Existing holders of the Layer 2 Index token can continue their exposure to this Index of projects as the market evolves.
The LTI token will be freely traded on multiple DEX and Crypto Exchanges. It will be available for the minimum transaction costs for each platform. An annual management fee of 0.93% will cover overhead and gas related to re-balancing the constituents throughout the year.
The Layer 2 Index LTI token is comprised of the retrievable components of the Layer 2 Index, which means that each LTI token is un-wrappable for the constituent tokens of the Layer 2 Index. This is true self-custody for DeFi users, and not dependent on an Oracle or other price feed to assign valuation of the LTI token.
Because of this the LTI token has a price which is the actual value of the underlaying member tokens at the market rate based on the ability to derive the constituents at any time, and on demand through spot selling or redemption.
Price fluctuations of individual tokens will have a impact based on the ratio to other tokens in the Layer 2 Index. The Layer 2 Index intends to smooth the peaks and troughs of individual token volatility with a broader market exposure to these multiple tokens providing Layer 2 Scaling technologies for Ethereum.
The initial weighting is based on Emergent, Productive, and Dominant classifications. Inside each classification is more or less tokens to determine that balance:
|Brave Attention Token||BAT||Emerging|
|Shiba Inu Token||SHIB||Productive|