Amun's Polygon Ecosystem Index, or PECO, is the first index token designed to track the performance of the top projects on Polygon. Its purpose is to provide investors an easy and low cost way to invest in Polygon's vibrant and growing ecosystem.
As described in the Ecosystem Index Token primer, Amun's ecosystem tokens leverage the most prominent exchanges in an ecosystem for swapping and for determining available liquidity. For PECO, both QuickSwap and Dfyn are used for acquiring constituent tokens.
MATIC will be 50% of the index composition initially. As the Polygon ecosystem matures, we expect to lower the portion of MATIC to make room for other promising projects. The remaining 50% of the PECO token is composed of protocol tokens weighted using the averaged ratio of market cap and DEX liquidity. They must also satisfy the following criteria:
must be native to the Polygon network and contribute to the Polygon ecosystem.
must have launched on the Polygon mainnet for a period greater than 2 months, to eliminate transient, unsustainable projects.
has organic adoption in liquidity and market cap.
has sufficient DEX liquidity on QuickSwap and Dfyn. For a starting point, we look for DEX liquidity above $3 million.
For PECO tokens minted on Ethereum, Amun leverages Polygon's PoS Bridge to wrap PECO tokens (Wrapped PECO) on Ethereum.
For PECO tokens minted natively on Polygon, MATIC is swapped for PECO and the transactions reside on the Polygon network.
While tokens can be bought or sold on select decentralized exchanges, users can also directly mint or burn these tokens through the Amun Tokens platform at a valuation based on the tokens NAV (Net Asset Value). These processes are outlined below:
Native Token Mint Flow
Native Token Burn Flow
No management fees will be charged from launch until the end of 2022. Starting in 2023, PECO will incur a 1.5% management fee.