Indexed Finance

Overview

Indexed Finance (NDX) is a DeFi protocol that aims to facilitate the creation and management of tokenized cryptocurrency index funds. The platform was designed to make it easier for users to gain exposure to diversified crypto portfolios through automated index management.

Purpose and Utility

The NDX token serves as a governance token for the Indexed Finance protocol, allowing holders to participate in decision-making regarding protocol parameters, index composition, and treasury management. The protocol itself provides index tokens that track various sectors of the cryptocurrency market.

Business Model Analysis

The protocol generates value through index rebalancing and management fees. Index tokens represent real cryptocurrency assets held in smart contracts, making the underlying business model compliant with Islamic principles as it involves actual asset ownership and exchange.

Development and Usage

Following a significant exploit in October 2021, the protocol's development and usage have largely ceased. While the technology behind the protocol remains innovative, the project has experienced minimal activity since the incident.

Token Distribution

The initial token distribution included allocations for the team, early investors, and the community. The project implemented vesting schedules for team tokens, showing some consideration for long-term alignment of interests.