5.2 SoSoValue Index Overview
5.2.1 Overview
The SoSoValue Index(SSI) is an innovative spot crypto index protocol designed to help investors confidently and efficiently capture crypto market growth. Built on purely on-chain architecture and support by trusted third-party custody partners, SSI provides a secure, transparent, and low-cost passive crypto investment solution, eliminating the complexities of defi landscape and individual token selection.
Launching in December 2024, four indices will be available: MAG7.ssi, MEME.ssi, DEFI.ssi, and USSI(hedged). Each index token represents a carefully curated basket of spot crypto assets, constructed using transparent rules and rigorous methodology to track major crypto sectors. SoSoValue Indices offer a seamless approach to achieving diversified exposure in the evolving crypto market.
5.2.2 MAG7.ssi
Product Elements
Product Name
MAG7.ssi
Custodian
Cobo/ Ceffu
Number of Constituents
7
Constituent Weighting
The minimum weight for each constituent token is 10%, with the remaining weighted average based on the circulating market cap.
Rebalance Frequency
Monthly
Product Highlights
Carefully selected top 7 projects by market cap, with strong social consensus and ample liquidity. This product offers enhanced systematic beta returns from the crypto industry while providing high risk resistance.
The initial 10% equal weighting allocation provides sufficient weight to second-tier leaders outside of Bitcoin and Ethereum. Assuming the emergence of more $100 billion market cap tokens over the next 4 years, this structure helps investors secure foundational returns from the crypto industry while also offering the opportunity to capture excess returns from the rise of new industry leaders.
Monthly rebalance with a buffer setting ensures timely inclusion of emerging leaders while minimizing the transaction friction caused by frequent rebalancing.
5.2.3 MEME.ssi
Product Elements
Product Name
MEME.ssi
Custodian
Cobo/ Ceffu
Number of Constituents
10
Constituent Weighting
Weighted average based on the circulating market cap
Rebalance Frequency
Monthly
Product Highlights
Focused on top-tier projects in the Meme sector, investors can avoid the risks of missing out or experiencing significant drawdowns in the highly volatile Meme market. By investing in MEME.ssi, one can achieve one-stop exposure to the core assets of the Meme sector, allowing investors to easily follow market trends while mitigating the high risks of individual tokens.
Carefully selected large-market-cap and highly liquid Meme tokens. Among the constituent tokens, the largest Meme token has a circulating market cap of nearly $60 billion, while the smallest Meme token exceeds $800 million, providing ample strategy capacity.
Offers investors more stable long-term returns in the highly volatile Meme sector.
5.2.4 DEFI.ssi
Product Elements
Product Name
DEFI.ssi
Custodian
Cobo/ Ceffu
Number of Constituents
10
Constituent Weighting
Weighted average based on the circulating market cap
Rebalance Frequency
Monthly
Product Highlights
With the Trump administration's rise, crypto regulations are expected to ease, paving the way for blockchain technology to reshape the financial infrastructure. Defi, having endured and evolved since the "DeFi Summer," now comprises established assets with the potential to drive fundamental breakthroughs and achieve exponential growth under a more favorable regulatory environment.
While DeFi has underperformed this year due to previous SEC crackdowns, it presents opportunities for short-term catch-up growth and stable, long-term development.
A carefully curated selection of large-market-cap, highly liquid DeFi assets is managed through a market-cap-weighted strategy. This approach provides broad industry exposure while mitigating liquidity risks and uncertainties associated with emerging sectors.
5.2.5 USSI
Product Elements
Hedge Strategy
Utilizing systematic delta hedging strategies to maintain a delta-neutral exposure while optimizing returns through funding rate fees.
Asset Allocation
Allocated to the top 7 cryptocurrencies by market cap, providing ample strategy capacity and good liquidity; dynamically adjusted to enhance returns.
Risk Control
Token-level risk control: Only allocate to large-cap cryptocurrencies to mitigate extreme risks. Account-level risk control: Real-time liquidity mechanism. System-level risk control: Complete isolation between strategy and risk control modules.
Product Highlights
Neutral strategy, fully hedged, delta-neutral exposure, with very little drawdown.
Funding rate provides sustained and stable returns.
The funding rate can surge and exceed an annualized 100% in the bull market, bringing low risk excess returns.
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