Background
Curated Index Funds are a product by Bridgesplit that enable a Curator to create a basket of non-fungible assets, fractionalize the basket, and sell fractions (shares) of the basket. Examples include a “Dragonz Index” that the Boryoku Dragonz team might create to improve liquidity for Boryoku Dragonz or for a curator DAO that is looking to fractionalize its holdings for its holders’ to have true governance and financial utility. Holders can vote on whether or not the entire Index is able to be bought out and at what price.
Curated Index Funds can have different functionality based on the Index Settings. The two settings for a Curated Index Fund are:
  • Dynamic vs. Locked: A Curated Index that is Dynamic means that the Curator can add new assets to the index and change the relative prices of the assets in the index
  • Asset Buyout Enabled vs. Disabled: A Curated Index with Asset Buyout Enabled means anyone can purchase individual assets out of the index
Index Fund pages will have visible tags illustrating whether an index is Dynamic/Locked and Asset Buyout Enabled/Asset Buyout Disabled. A Curator may change the state of these settings at any time. This means its imperative for traders to understand the risks of all states of an index fund and to trust the Curator to act fairly.
Shareholders reserve the right to participate in an ongoing vote to decide whether the entire Index can be bought out or now and at what price (Minimum Buyout Price). If at any point, at least 50% of the shareholders vote to enable Buyout, an auction may begin at the Minimum Buyout Price (in SOL, not shares). At this time, any user may also buy the index instantly (“Buy Now”) for 1.75x the minimum price. Each shareholder can also vote on the Minimum Buyout Price, the true Minimum Buyout Price is the median of all of the votes.
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