Avastars Index funds are now available
In this blogpost, we will run through the new Avastars NFT index funds which were recently released by the NFTX DAO.
In this blogpost we will run through the new Avastars NFT index funds which were recently released by the NFTX DAO. We’ll take a look at the project these NFTs originate from, look into each individual fund and round up with a list of contract addresses and links to other resources.
NFTX is a platform for making ERC20 tokens that are backed by NFTs. These tokens are called funds, and (like all ERC20s) they are fungible and composable. With NFTX, it is possible to create and trade funds based on your favorite NFTs such as CryptoPunks, Axies, CryptoKitties, and Avastars, right from a decentralized exchange.
Let’s get started!
What are Avastars?
Generative. On-chain. Built on Ethereum. Avastars is the future of digital collectibles built by the team at nft42.
Every Avastar is composed of generative vector art and has unique combinations of traits and genes. Once all of the original Avastars are minted, the only way to mint new ones will be via Replicants, which will require combining traits from the original Avastar Primes.
The best part? All of the unique data of your Avastars, whether Primes or Replicants, are stored entirely on-chain on Ethereum. That means these digital collectibles will live forever!
The Avastars Funds Explained
With this launch, we have bootstrapped a total of 3 Avastars NFT funds, based on specific traits of the underlying NFTs.
Below we will go over each individual fund and see how they are different from each other.
$AVASTR-BASIC
Avastr-Basic is a single fund token, which is 1:1 backed by any Avastars NFT.
Because this fund allows any Avastar to be deposited as collateral, it acts as a floor price tracker for the entire NFT category.
Type: Single Fund
Portfolio Balance: 1:1 backed by NFT
SushiSwap Pair: https://app.sushi.com/token/0xb5A0931b1B7F21C2F557fd4FDdCcb504e71AE32D
Contract Address: 0xb5A0931b1B7F21C2F557fd4FDdCcb504e71AE32D
Fund on NFTX.org: https://nftx.org/#/fund/10
$AVASTR-RANK-30
Avastr-Rank-30 is a single fund token, which is 1:1 backed by Avastars NFTs that are rank 30 or higher.
Type: Single Fund
Portfolio Balance: 1:1 backed by NFT
SushiSwap Pair: https://app.sushi.com/token/0x59a82F0FF8E88804a34Dd467b7061F1986Fe1769
Contract Address: 0x59a82F0FF8E88804a34Dd467b7061F1986Fe1769
Fund on NFTX.org: https://nftx.org/#/fund/11
$AVASTR-RANK-60
Avastr-Rank-60 is a single fund token, which is 1:1 backed by Avastars NFTs that are rank 60 or higher.
Type: Single Fund
Portfolio Balance: 1:1 backed by NFT
SushiSwap Pair: https://app.sushi.com/token/0xabA49Db7E374cc6954401DC0A886E0B02670536e
Contract Address: 0xabA49Db7E374cc6954401DC0A886E0B02670536e
Fund on NFTX.org: https://nftx.org/#/fund/12
How to become a liquidity provider for Avastars funds
Want to become a liquidity provider for one or several of the Avastars Index funds but don’t know where to start? Here’s how you can:
Getting started
To get started, the first thing you will have to do is supply one (or multiple) Avastar NFTs to one of the index funds listed above. You can skip this step if you’ve bought single fund tokens from an exchange.
If you haven’t and want to use your own NFT as collateral, follow through with the tutorial below. Be aware that supplying your NFT as collateral mixes them with all other similar NFTs in that fund, making it a possibility that you will not be able to redeem the exact NFT when you redeem your fund token later. This is caused by the randomness associated with redeeming an NFT out of a fund.
Note: Avastars, as opposed to Cryptopunks shown in the tutorial below, do not have to be wrapped before being used to mint a fund token.
How to add liquidity on an exchange?
After successfully going through minting your index fund tokens by following the tutorial above, you will be ready to become a liquidity provider on an AMM (Automated Market Maker) such as SushiSwap.
The process of becoming a liquidity provider is fairly simple. It requires you to provide your fund token, in combination with a second currency, to the liquidity pool of an exchange. As NFTX pairs are favored by the DAO, we take $NFTX as an example.
Taking SushiSwap as an example, you can provide liquidity by going to the Sushiswap Pair page and click on the +liquidity button on the right side of the page.
Redeeming Avastars from the index funds
When you want to take the opposite route, and take NFTs out of one of the index funds, you can do so by redeeming your fund token on NFTX.org.
Watch the video tutorial below where ChopChop walks you through the entire process.
That’s it for today!