Core team AMA Recap
On Thursday, February 11, right after the launch of the Blue Chip Crypto Index $GBI, Mission Control hosted an AMA to answer questions of the community and revealed the plans and future of the SPICE DAO.
The SPICE DAO officially launched the Galactic Blue Index — $GBI, the second index fund of the DAO, focused on giving investors exposure to the most trusted digital assets in the space, covering the most relevant sectors of the DeFi and crypto value stack. This recap summarises an AMA hosted in the Telegram Community Channel with core team members, ‘Lucky Picard’ and ‘Rick Mortensen’.
Question: What type of performance should we expect from a blue-chip crypto index fund?
Rick: Can’t predict the future ;-). But what I’m confident is that GBI is a great way to get exposure to the most important projects in the market. Backward testing showed how it outperforms single assets such as Bitcoin. Additionally, such a portfolio at zero costs makes life easy and saves for smaller buyers the gas costs one would need to flesh out buying the single assets on a dex.
Q: Will we be able to buy index products on the webpage directly like Uniswap fork build in?
Rick: I love the idea. We will look into it. We created links directly to the pair on Uniswap, so there is no way people will buy the wrong index.
Q: Any plans on adding EGLD into the blue-chip index fund?
Lucky: EGLD is definitely an interesting token and as with other products and indices, the definition and pick of constituents is also up to our DAO (check out the current SCIFI Voting). And this obviously comes to the angle where we need to define blue-chip for cryptos community based, is USDT a blue-chip, by market cap it is. So EGLD could become part of the blue-chip, depending on performance, market cap, and DAO decision making.
Q: What brings about the GBI, why does the team feel there is a need to have one? How would it benefit the project as a whole?
Lucky: If you look at the current gas prices, buying 10 crypto coins costs a small fortune (and is quite a hassle) — this is the first problem we solve with giving investors access to the major crypto coins in 1 coin to trade only. But besides this, the exposure to the major correlating projects is an attractive passive investment vehicle for you, like a S&P500 ETF giving you exposure to the bigger market and in the long term outperforming each and every actively managed fund and investor. As for the GBI details, yes, the same DAO process as for SCIFI will be used, monthly rebalancing.
Q: Any new utilities for $SPICE, besides governance?
Lucky: We will get listed and included in more and more aggregators (drop us a vote here) — and SPICE is already, besides the governance element, providing a crucial utility driving the indices into the DeFi ecosystem. So this is really just the beginning of SPICE, think of it as the foundation of BlackRock, just that the ownership is now with shareholders, but the $SPICE holders.
Q: What makes $SPICE interesting compared to other similar products? What makes it stand out?
Rick: We saw lately great other decentralised index products. I think it takes more than one project to educate consumers/ investors, so it's a joint effort to grow the space overall. What makes SPICE indices though stand out is that it has zero fees and unique tokeneconomics. Every SPICE index, i.e. SCIFI or GBI includes $SPICE, the governance token. The investors in the SPICE indices are becoming so to say owners of the asset manager ($SPICE) instead of paying a fee. We think it's better to own black rock than to pay them. We created a short video to explain the SPICE Tokeneconomics.
Q: What happens if the constituents surge in price and the SPICE token experience less upside?
Rick: If the constituent’s value increases, the overall index value increases. To maintain the ratio of $SPICE in the basket more $SPICE will be bought in the rebalancing. This creates additional demand for $SPICE.
Q: Is the price of SPICE directly correlated to the indices performance?
Rick: The SPICE indices contain $SPICE. Hence the growth of the index and the performance of the index impacts the demand for $SPICE and its price. The higher the AUMs of SPICE funds go, the more $SPICE is needed, impacting its price.
Q: I would love to learn about the possibilities for arbitrage on the indices.
Lucky: Check out the medium post Arbitrage and decentral market making, in general, there is and will always be a place for decentral actors to work on price and product efficiency, the most notable opportunity being minting and redemption based on current discount or premiums.
Q: Any read you recommend?
Lucky: In these mad times can’t have too much info to digest. If you have not read Frank Hubert’s “Dune” (involving some SPICE) — it is about time. And on a more current DeFi day to day level, I think TheDefiant is doing an excellent job. But also take a look at bloomberg.com — good to see how frightened they became (especially from WSB).
Q: Is SCIFI exploring partnerships in the DeFi space?
Q: How does the anonymous team manage to get so many top influencers to participate?
Rick: You convince people to join a project with a great mission and product value proposition. But it's also true that people we work with together do know us for some time.
Q: Will Scifi use Chainlink price oracles for pulling data off the constituents in the index?
Rick: SPICE is using DIA oracles. We have very high data integrity requirements for our index funds. With the DIA tech stack, we have the best solution for it.
Q: Any partnerships in the works?
Rick: Yes, we set the foundation to exactly bring the right partners on board that will be providing a good push on the marketing and distribution side to grow the entire index family and the indices to come. Excited about what will come!
Q: Any airdrops for holding GBI like with SCIFI?
Rick: Yes, this is currently in discussion. Head over to our discord and have a look.
Q: Any plans to allow SPICE holders to vote on the next index?
Lucky: We just launched a blue-chip index (GBI) — but community curated and driven indices are definitely where the future is. In the end, this is about capturing your guys demand and investment themes and provide the basis to do this hassle-free in a DAO set-up. We already had some really good suggestions in our Discord that we are following, anything you have in mind please drop it there.
Q: Any plans to list anywhere other than Uniswap so people can avoid gas fees?
Lucky: Absolutely. Current gas fees are not sustainable. And even though the cost reduction on issuance and maintenance of an indice is with current gas much cheaper than e.g. setting up an ETF and maintaining it (since we don’t have the intermediaries), LP2, and other pools outside of Uniswap, as well as coops with CEXes are on the roadmap. Drop up a vote here to support the mission.
Q: Any marketing plans to gather more people into the products?
Lucky: We are just at the beginning of this product, and are more focused ATM at least to satisfy the first users, rock on performance for the indices we launch and collect first user feedback for validation and improvement of our stack. So the more aggressive and budget heavy marketing is a bit down the line, currently, it is more about secure and transparent, and well-performing products (and learnings from those).
Q: What’s the vision in the near future after the bluechip index gains traction? What can we expect moving forward?
Lucky: The SCIFI and BlueChip index are really just a first range of indices — much more to come — community-driven but also targeted to more traditional institutional investors. So you can expect a much broader range of products coming up, always using SPICE as a core governance element, with much more assets under management and learnings and hopefully input from the DAO.
This is the end of the latest Community AMA hosted by Mission Control members Rick and Lucky, where topics such as the launch of the new blue-chip index, SPICE tokeneconomics, partnerships, and future plans were covered.
We would like to thank the community for the participation and engagement. If you could not make it to the AMA this time, our Discord channel is always open for questions and suggestions.
Learn more about the new blue-chip crypto index launched by the SPICE DAO, covering the full ecosystem in one token.