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SW Index
Our best products wrapped into one.
SW Index is a tokenized index built on the Balancer protocol that holds SWD, USDC, Quantum Momentum Ethereum, and SW Yield Fund. The SWX token is the core asset used for liquidity provisions of the SWD token and is the asset used in bond sales. This token provides the best products that SW DAO has to offer all wrapped up into a single product.

Goal

The goal of the SW Index is to be a productive asset within the SW DAO ecosystem and to increase value regardless of market conditions. SW Index gains value across multiple market conditions by holding discretionarily or algorithmically traded products within.

Purpose

This index is meant to provide stability and growth potential for the investors involved while also being a tool that can be used by the community to hedge against negative volatility on our DEX liquidity pairing. In this way, SW Index can act as a store of value for the ecosystem, SWD token, while also providing utility in Bond issuance.

Use in Bonds

SW Index is the asset that is purchased by investors and sold back to SW DAO for our bond products. By purchasing liquidity back from our investors, SWD tokens will have deeper liquidity pairing, as well as increased product TVL through the addition of SWYF and QME on our balance sheet.
The yield earned for selling SWX to the DAO comes out of a previously allocated 6% of the total supply that was initially to be used for liquidity mining. This provides a sustainable way to increase yield for our liquidity providers without sacrificing long-term value.

Dividends & Voting

As a holder of the SW Index, you are eligible to receive a portion of the monthly dividend, as well as governance power at a 50% rate. This is because 50% of the SW Index is made up of SWD tokens, which entitles holders to 0.5x the standard dividend rate and 0.5x the standard governance power. Thus, by holding the SW Index, you can gain access to both financial returns and governance rights that are exclusive to SWD token holders. This makes the SW Index an attractive investment for those looking to participate in the growth of the SW DAO ecosystem and leverage our products.

Current Constituents

  • 50% SWD Token
  • 20% USDC
  • 15% Quantum Momentum Ethereum
  • 15% SW Yield Fund

Asset Inclusion

The SW index is currently composed of 50% SWD tokens, 30% SW DAO products, and 20% currency. This index composition is not expected to change any time soon. However, the founding team may make changes to the index composition in the future within the preset allocations established in SWIP-07. If such changes are made, ample notice will be provided to the community. Additionally, the percentage of currency in the index may decrease over time as liquidity is deepened. Such an increase in liquidity would mean that the currency pairs would no longer need to be included in the balancer pool at their current allocation percentage.

Fees

  • Rebalance Fee: 2.50% (only if >2% misalignment of index caused by transaction)
  • Spread Fee: 1.00% (waived for SWD holders >500 tokens)
We are currently charging a fee of 2.50% per transaction in order to keep the index automatically rebalanced. This fee is applied only when your transaction throws the balance of the Index off by 2% or more. In addition, we are also charging a spread fee of 1.00% for those buying or selling our products. The spread fee is kept within the balancer pool to deepen liquidity.
However, we are waiving the spread fee for all transactions made by SWD token holders who have 500 SWD or more in their wallets at the time of purchase. We believe that this will incentivize even more people to hold our token when interacting with our products. By waiving the fees for those holding our token, we are confident that we will be able to maintain a healthy balance in our ecosystem.

Polygon Contract Address: 0x24ec3c300ff53b96937c39b686844db9e471421e

SW Index (SWX) Token Tracker | PolygonScan
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