Autoglyphs Index fund is now available
In this blogpost we will run through the new Autoglyps NFT index fund which was recently released by the NFTX DAO.
In this blogpost we will run through the new Autoglyps NFT index fund which was recently released by the NFTX DAO. We’ll take a look at the project these NFTs originate from, look into the 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 Autoglyphs?
Autoglyphs are the first “on-chain” generative art on the Ethereum blockchain, created by the team at Larva Labs. They are a completely self-contained mechanism for the creation and ownership of an artwork.
The Autoglyphs Fund Explained
With this launch, we have bootstrapped 1 Autoglyphs NFT fund.
Below we will go over the fund.
Investing into the Autoglyphs Index Fund can be done through $GLYPH, a single index fund that is directly 1:1 backed by Autoglyphs NFTs.
The price of this token is based on the weighted average of all underlying collateral.
Type: Single fund
Portfolio Balance: 1:1 backed by NFT
SushiSwap Pair: TBD
Contract Address: 0xc8AA432112814B9CAB53811D4340Ed45482CB2b5
Fund on NFTX.org: https://nftx.org/#/fund/13
How to become a liquidity provider for the Autoglyphs fund
Want to become a liquidity provider for the Autoglyphs fund but don’t know where to start? Here’s how you can:
To get started, the first thing you will have to do is supply one (or multiple) Autoglyphs NFTs to the index fund 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: Autoglyphs, 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 Autoglyphs from the index funds
When you want to take the opposite route, and take NFTs out of the index fund, 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!