FAQ

What are on-chain indexes? An index is a transparent on-chain repository which secures a curated set of tokens following a specific strategy and methodology, allowing users non-custodial access to a diversified index without requiring a central authority to allocate assets, rebalance or implement redemptions.

What are index tokens? An index token is a representation of one’s share in an underlying index, which users receive when they deposit into an index vault. The quantity received depends on deposit size and real-time market data, as index tokens remain fully collateralised by the assets held in the vault. This allows users to further utilise their vault positions in other DeFi protocols while still benefiting from a broad and diversified token portfolio.

Who controls the assets? EntryPoint allows for non-custodial investments, meaning users remain in full control of their assets via fully-collateralised index tokens, redeemable around the clock and without third-party involvement. By transparently storing tokens on a cryptographically secured blockchain managed by decentralised governance, users can rest easy knowing that no centralised custodian can access their assets.

What are the fees on EntryPoint? Each index has a different fee structure based on their specific level of complexity, due diligence and maintenance requirements. Typically, indexes will have a streaming fee, possibly deposit/redemption and performance fees.

How is EntryPoint governed? The EntryPoint chain and its permissionless offerings are governed by ENTRY token holders using a one token, one vote system of proposal-making and voting, and a number of semi-autonomous working groups to manage day-to-day activity. For regulatory purposes, EntryPoint’s permissioned offerings are managed by a separate, autonomous body ensuring adherence to financial regulations.

Can users create their own indexes? No. Proposals for new indexes are made by professional third-party strategists. It is the job of EntryPoint governance to vet these and ensure that only high-quality indexes make it onto the platform. This process involves both auditing and whitelisting the proposed composition tokens, to ensure proper due diligence and risk management.