Phuture in 5 minutes
What is Phuture?
Phuture is a crypto index platform, that simplifies investments through automated, themed indices. Our indices are designed and curated by experts. Built to help you stay disciplined and ride the trends, not the extremes.
Phuture’s crypto-index products provide diversified access to cryptocurrency markets. Each index automatically follows an outlined strategy, ensuring the right asset mix at all times.
Phuture provides index managers with the tools to deploy their own index strategies on the Phuture platform.
How does Phuture change investing? Advantages
- Creating indices without constraints. Phuture allows anyone to create their own dynamic index strategies.
- Smart rebalancing. Phuture uses dynamic range rebalancing strategies rather than time-series strategies to improve index performance.
- Phuture uses a more efficient rebalancing infrastructure, resulting in lower rebalancing costs for index investors.
- Default asset optimisation. Phuture generates yield on selected assets within its vaults enabling productivity of idle assets and improved index performance.
Phuture’s reserve model keeps enough assets within the platform to support redemptions and rebalances, whilst the remainder are put to work on Yearn. The reserve parameter is configurable through governance and dictates the percentage of each asset held on Phuture.
Recapitalisation ensures the platform is targeting the optimal reserve ratio. As assets increase due to index minting, keepers move the excess assets over to Yearn to begin generating interest. Conversely, as indices are redeemed and reserves reduced, keepers pull assets from Yearn to increase the reserves on Phuture. This process assures the solvency of the system and restores the optimal reserve ratio.
Phuture Index architecture
Optimised rebalancing. At the highest level all indices are grouped into homogenous pools of assets and assigned a weight based on the asset’s weight in each index. The platform can now rebalance between assets pools on a global level as opposed to rebalancing between assets on a local index level. This immediately reduces computational complexity when indices with new assets are created and when indices with existing assets are created. A new asset is defined as one that is not currently held on the Phuture protocol.
When a rebalancing transaction occurs between two asset pools it affects every index that holds either of those assets. Ultimately, moving the protocol towards a state of balance.
Sectors. Using the predefined sectors, index managers can curate a portfolio of assets around a specific theme.
Sector tracking. Tracking allows an index to maintain exposure to a sector’s top assets based on the selected weighting methodology. Phuture will automatically add or remove tokens from the index based on their current ranking.
Dynamic data for index weights. Indices can leverage dynamic datasets to assign individual asset weights within an index. These weights are updated monthly to ensure that indices based on dynamic data are accurate.
The $PHTR token is an important element of the Phuture ecosystem. It’s worth talking about it and its role in the ecosystem.
$PHTR is the medium through which the protocol can enforce governance, reward users, incentivise activity and provide a medium to raise capital.
What are the functions of $PHTR?
- Governance — Staked PHTR holders can exercise their right to vote on, or propose new ideas to improve the Phuture protocol.
- Staking — Users who stake PHTR receive Enhanced PHTR (ePHTR), a yield generating, governance enabled variant of PHTR.
- Liquidity Incentives — Distributed to liquidity providers of PHTR and Phuture index products.
What about $PHTR incentives?
- $PHTR staking on official website (Guide)
- Single side staking on Bancor (Link)
- Liquidity incentives on Harvest Finance (Link)
Working groups. Community Working Groups allow motivated community members to propose, share and collaborate on ideas that will benefit the Phuture ecosystem. Each Community Working Group focuses on a different area of the ecosystem and each have a different set of goals that they are trying to achieve (more information).
The current working groups are:
- Marketing and Growth
- Business Development
Phuture Improvement Proposals. A Phuture Improvement Proposal (PIP) is the format in which new ideas are proposed to the community for the benefit of the Phuture ecosystem (more information).
Join the community and be a part of the Phuture of indexing!