STI (Stable Token Index)
Overview
STI (Stable Token Index) comprises the top three reputable stablecoins in the market. Instead of being exposed to a single stablecoin, which can pose risks for users, this index allows users to hold multiple stablecoins in one portfolio. By diversifying across stablecoins, individuals can enjoy the benefits of stability while significantly reducing the risk associated with any one stablecoin deviating from its peg to the USD.
Methodology
Neutral construction of stable coins USDC, DAI and USDT Equally.
Maintenance
Stable Token Index does not typically require regular rebalancing since it exclusively comprises stablecoins. However, adjustments may be necessary if any stablecoin deviates from its peg to the USD. In such cases, a rebalance or component change may occur to maintain the index's stability and reliability for users.
Fees
Streaming fee: 0.95%
Mint fee: 0%
Redeem fee: 0%
Risks
The digital asset in question is susceptible to several risk factors, including but not limited to:
Technical Vulnerabilities: The potential for complete or partial loss of digital assets resulting from technical breaches, exploits, or failures that could occur at the protocol or smart contract level within the product's infrastructure.
Regulatory Constraints: The possibility of regulatory authorities in the end user's region imposing restrictions on the use or possession of digital assets, thereby affecting their accessibility and value.
Centralized Providers' Decisions: The risk of losing digital assets or access to them due to determinations made by centralized providers of the underlying assets, which may not always align with the interests of the asset holders.
Market Conditions: The chance of full or partial loss of digital assets stemming from the standard operations of the product, which can be impeded by unforeseen market fluctuations and conditions.
Protocol-Induced Changes: Exposure to the risk of complete or partial loss of digital assets due to alterations made to the underlying product assets by the originating protocols.
Market-Related Risks: Vulnerability to full or partial loss of digital assets resulting from factors such as volatility, correlation, value at risk, and contagion risks in the digital asset market.
Methodology Deviation: The potential for digital assets to underperform due to deviations from their intended methodology or objectives.
Underlying Token Volatility: The risk associated with the fluctuating value and volatility of the underlying tokens supporting the digital asset.
It is imperative for potential investors or users to be cognizant of these risk factors and exercise due diligence when engaging with this digital asset.
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