Amun launches PECO Index Token providing exposure to top Polygon projects
By Edlyn Cardoza
Amun, a leader in DeFi index products, recently announced the launch of the Polygon Ecosystem Index (PECO) token. Available through the Amun Platform, the PECO token is an index of the top projects being built on Polygon, an Ethereum scaling platform onboarding millions to Web3 – giving users targeted exposure to the entire Polygon ecosystem, rather than just projects that live on both chains.
Created collaboratively by Amun, Polygon Foundation, and leading Polygon projects, PECO is Polygon’s first ecosystem index token. PECO’s initial composition is made up of 50% MATIC, with the remaining 50% comprising Quickswap, DFYN, Adamant Finance, Aavegotchi, and Qi Dao. This composition provides an alternative to only holding MATIC, instead providing a token that grows with the entire Polygon ecosystem.
PECO is rebalanced on a monthly basis to lock in gains and ensure constituent tokens are allocated accordingly by rank of market capitalization and liquidity. The portion of MATIC in PECO is expected to be lowered over time to make room for other promising projects. PECO is free of management fees until 2023.
The token can be minted and burned at any time with one click on the Amun Platform and is also available through other major exchanges such as SushiSwap. To broaden investor access to the Polygon ecosystem, PECO is available on both Polygon and Ethereum. Ethereum users can buy, mint, or burn PECO tokens with a single click. Amun’s integration with the Polygon Bridge makes the process seamless to the user.
James Wang, Head of Tokens at Amun said: “Given the growth of blockchain ecosystems beyond Ethereum, we believe index tokens that give users exposure to the top projects in an individual ecosystem are vital to onboarding users to these new platforms. We are the first company to launch crypto index products on multiple blockchains. Polygon is our first ecosystem token because of its early success in providing Ethereum users with a viable cross-chain bridging solution to achieve higher throughput, faster transactions, and lower fees.”
Sandeep Nailwal, co-founder of Polygon, added: “Recently surpassing Ethereum in daily active addresses, Polygon’s DeFi ecosystem has over $4 billion in total value locked. Launching PECO takes Polygon to the next stage of growth. While Polygon was initially developed as a side-chain to enable computation off the Ethereum mainnet, it has evolved to become the most popular interoperability and scaling platform for building Ethereum-compatible blockchains. With developers and NFT projects around the world flocking to Polygon, we’re seeing constant growth in the number of innovative projects that are achieving incredible success. With PECO, investors can get in early as developers work to shape the next phase of DeFi and Web3.”
Offering the highest developer support from Day 1, Polygon is the most developer-friendly platform after Ethereum, providing its rapidly growing developer community with access to their favourite tools, including Alchemy, Hardhat, Truffle, Metamask, Etherscan, and more. That’s why Polygon is witnessing a surge in innovative projects launching on its platform.
Currently, Polygon is home to the highest number of Dapps, more than 500, outside of Ethereum – including Sushiswap, Curve, Aave, Balancer, and Kyber. This announcement follows the Polygon Foundation investing $5 million in MATIC to seed the launch of PECO, with additional contributions made by Qi DAO, Adamant Finance, and DFYN.
Recently, IBS Intelligence reported that Origin community has voted to support Polygon as the first alternative to Ethereum layer 1 NFTs (ERC-721), which can be costly to mint and transfer. They brought this decision to the community and then rapidly executed it, showcasing the power of decentralized governance in shaping Origin’s product roadmap.
IBSi Daily News Analysis
July 06, 2022
As cost-of-living crisis bites, how can financial services support their customers?Read More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage
Other Related News
July 04, 2022