Bankless proposed that the Index Coop manage a Set based on an index of Crypto’s most investable assets, BTC, ETH, and DPI, in equal weight. This construction — known as the BED Index or Bankless BED Index — seeks to give safe, passive exposure to a vehicle that captures equal-weighted upside from the most promising use cases and themes in crypto: store of value, programmable money, and decentralized finance. ### Methodology The BED index is meant to track crypto’s top 3 investable assets. 1. **Scope:** The index includes the top 3 investable assets with real usage and large capitalizations around the theme of blockchain: BTC, ETH, DeFi (DPI). 2. **Weighting:** Neutral construction, equal weight 3. **Rebalancing:** First Friday of every month The composition is: * 33.3% Bitcoin * 33.3% Ether * 33.3% DPI The underlying index is rebalanced after the close of trading on the first Friday of each calendar month. The Fund is rebalanced in accordance with its Underlying Index. ### Component Selection #### Market Requirements * The components must have a Large cap valuation $25b+ \[If an Index, the corresponding token market caps must have a sum of >$25b\]. * The components must show signs of heavy usage either as a network (btc, eth) or smart contract theme (DeFi). * The assets must have sufficient liquidity for initial inclusion and rebalances. #### Safety Requirements * Assets and themes within the Bankless BED Index should have vast, well-established safety guarantees. * Any network/protocol must have conducted sufficient security audits and/or security professionals must have reviewed the protocol to determine that security best practices have been followed. ### Index Maintenance #### Determination Phase The determination phase takes place during the fourth week of the month. It is the phase when the changes needed for the next reconstitution are determined. #### Reconstitution Phase The determination phase takes place during the fourth week of the month. It is the phase when the changes needed for the next reconstitution are determined. [Discord](https://discord.com/invite/RKZ4S3b) | [Instagram](https://www.instagram.com/indexcoop/)
