Starknet ecosystem

This document outlines the specific methodology for the Starknet ecosystem Index, detailing the rules and criteria governing its construction and maintenance. It serves as a supplement to the general iTokens methodology.

1. Introduction

The Starknet Index is designed to represent the performance of the Starknet ecosystem, providing a benchmark for assets natively built or closely integrated with the Starknet Layer 2 network.

This methodology outlines the rules and principles governing the Starknet Index, ensuring that it adheres to the broader iTokens framework while addressing the unique characteristics of the Starknet ecosystem.

The Starknet Index captures key tokens within the Starknet ecosystem, providing a clear and focused view of its evolution while maintaining balanced representation across its constituents.

2. Asset Universe Definition

The asset universe for the Starknet Index is tailored to reflect the unique characteristics of the Starknet ecosystem. This ensures that the index remains representative of the assets that are most relevant to the Layer 2 network.

Selection Criteria

Assets in the Starknet Index must meet the following criteria:

• Ecosystem Relevance: Tokens must be natively built on Starknet or have significant integration with the Starknet ecosystem.

• Liquidity: Tokens must exhibit sufficient liquidity to ensure practical replicability and minimize market impact during rebalancing.

• Tradeability: Tokens must be actively traded on one or more trading venues on Starknet. At least one of them must be Ekubo CLMM.

• ERC-20 Compliance: Only tokens adhering to the ERC-20 standard are eligible for inclusion.

• Team and Community Activity: The project associated with the token must demonstrate active engagement through social media or other public channels, indicating ongoing development and a vibrant community.

• Data Availability: Tokens must have sufficient, reliable, and consistent data for inclusion in the index. For the Starknet Index, data availability relies on Pragma Oracle, meaning that only tokens with price feeds on Pragma are eligible for inclusion.

• Other Factors: Additional considerations, such as token age, exchange listings, or others may be applied to ensure robust index construction.

Updates to the Asset Universe

The asset universe is reviewed regularly to account for changes within the Starknet ecosystem. This includes the inclusion of new tokens that meet the criteria and the removal of tokens that no longer qualify. This dynamic process ensures the index remains up to date and reflective of the ecosystem’s current state.

3. Index Value Calculation

Weighting

1. Weight Limit:

   • The maximum weight of any single token is capped at 25%.

2. Market Capitalization Consideration:

   • Only the number of tokens present on Starknet, as determined by their ERC20 contract's totalSupply function, is included in the calculation of market capitalization. Tokens present on other L1 or L2 networks are excluded.

4. Disclaimers and Limitations

The Starknet Index is designed solely for informational purposes and does not constitute financial or investment advice. It serves as a benchmark for understanding the performance of the Starknet ecosystem and should not be relied upon for direct investment decisions.

Limitations

• Data Dependence: The index relies on data sourced from Pragma Oracle. While rare, any delays, inaccuracies, or interruptions in these feeds may impact the index's accuracy and reliability.

• Ecosystem Risks: The Starknet ecosystem is a rapidly evolving Layer 2 network. Technological changes, market conditions, or unexpected events could influence the relevance or representativeness of the index.

• Liquidity and Volatility: Tokens within the Starknet ecosystem may experience significant liquidity fluctuations or price volatility, which could affect the index’s performance and replicability.

Usage Guidance

Users should perform their own research and seek professional advice tailored to their individual circumstances before making investment decisions based on this index. iTokens disclaims liability for any losses or decisions made using the Starknet Index.