Asset Eligibility Criteria

Which assets are eligible for KJI?

There are four eligibility criteria that assets shall fullfill before being added to KJI. Namely qualitative requirements, liquidity requirements, safety requirements & some index specific requirements.

Qualitative

In order to be considered for the index the team behind the token has to be trusted & actively working on the project. Further, it should have a clear value proposition & no signs of ill intent.

• Team has proven track record building & maintaining products

• Project has a valid use case Token has a valid use case / value capture mechanism

• No red flags or signs of potential rug Ongoing development (updates in past 3 months)

Liquidity

These requirements aim to ensure quality user experience by selecting assets only if they have enough liquidity to get in and out with as little price impact as possible. This is highly important to avoid slippage during mints, redemptions & rebalancing of the index asset. The token release schedule has to be transparent to avoid unpredictable large changes in liquidity & token supply.

• 3 month avg daily volume > $50k / Day

• 3 month avg liquidity > $50k

• Current liquidity (BOW) > $100k

• The token release schedule has to be predictable

• No more than 50% of tokens are still vesting

Safety

While code audits are often mostly a vanity metric, undergoing code reviews from professionals does make code less prone to certain attacks. Therefore, for newly launched projects that secure value in any form it shall be a requirement to undergo reviews by an auditor or the Kujira Core team.

• Code base must have undergone auditing or reviewed by Kujira Core team

• Proven track record for safety incident response

KJI specific

For the Kujira Index (KJI) there are further criteria that may not apply to future indices with assets originating from outside the Kujira Ecosystem.

• Project deployed on Kujira / Kujira is the home chain

• Team known to the public or the Kujira Core Team