- What is the BUIDL Index?
- Innovative Perpetual Market Mechanics
- Technical Advancements and Strategic Partnerships
Injective, a leading platform in decentralized finance, introduced the BUIDL Index, the world's first index designed to track the supply of BlackRock's $BUIDL Fund.
What is the BUIDL Index?
The BUIDL Index tracks not the price but the supply of BlackRock's $BUIDL Fund, providing users with insights into the fund's supply dynamics. The $BUIDL Fund offers stable U.S. dollar returns, paid daily and distributed monthly. The fund's assets include U.S. treasury bills, cash, and repurchase agreements, totaling over $500 million in assets under management.
Innovative Perpetual Market Mechanics
The BUIDL Index operates on a perpetual market model, allowing users to take long or short positions based on expected supply changes. If the supply increases, the index price rises, and if it decreases, the price falls. This mechanism provides new investment and risk management opportunities. Injective employs a 1-hour Time-Weighted Average Price (TWAP) to ensure stability and mitigate short-term volatility.
Technical Advancements and Strategic Partnerships
The BUIDL Index was developed in collaboration with Stork, a decentralized price feed service providing high-speed data for on- and off-chain applications. The launch coincided with the broader Altaris Mainnet upgrade, which included a Real-World Asset (RWA) oracle. Previously, the $BUIDL Fund was available only to institutional investors with a minimum investment of $5 million, but the new index democratizes access with a minimum investment of $1.
Injective's ongoing efforts are supported by a $150 million ecosystem venture fund, helping to accelerate adoption and expand their solutions.
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