Layer 2 Index (LAYERI)
We are in the process of the Ethereum scaling solution migration. Every day more and more TVL flows into Layer 2 scaling solutions such as Arbitrum and Optimism. This presents an interesting opportunity to be at the forefront of this new and expanding technology.
Thesis: Layer 2 scaling solution will grow to a large scale and occupy a significant percentage of Ethereum block space. In the future many new users will only interact with L2 scaling solutions and a very large volume of DeFi transactions will be through L2.
LAYERI will appeal to individuals that seek to increase their exposure to Layer 2 scaling solutions. By purchasing LAYERI, investors eliminate the need to maintain a diversified portfolio of Layer 2 tokens. This means that INDEX can reach a wide range of customers by offering the only L2 index with a phenomenal level of potential ROI.
By providing a basket of ready L2 projects for users to purchase; LAYERI solves many issues such as:
Giving the opportunity of purchasing a wide basket of different L2 tokens which have been vetted by INDEX. As this is a growing space there will be potentially many new tokens launched hence this index will give the users confidence in all projects invested.
Getting exposure to Layer 2 without the need to do research into each individual project.
The need to keep up with the fast paced DeFi ecosystem as new L2 tokens will launch frequently.
Optimism and Arbitrum managed to achieve a TVL of $2.2bn and $155.7M respectively. With the total L2 TVL being at the beginning of it journey this index will offer a phenomenal potential ROI, as more transactions will migrate to L2s. This will provide the customer to exposure to L2 scaling solutions without the need to monitor new projects launching and be at the forefront of the opportunity. The only similar product is the DPI which aims to capture growth of DeFI, LAYERI could be utilised by placing it within the DPI without over complicating DPI.
Cheap and faster transactions mean that many Ethereum users will migrate to L2s with many projects already doing so
The future of gaming, NFTs and other popular projects will be on L2s. Currently Crypto games have their own chains as its not feasible to launch on Ethereum. In the future roll ups will provide the solution as games can launch on L2s without the need to sacrifice Decentralisation.
LAYER will launch with the following fee structure:
Mint Fee: 0
Streaming Fee 35 Basis Points
Redeem Fee: 0
Yield: 25% Performance fee