AMKT-IP-10: Whitelist 21TON for AMKT Inclusion

Summary:

We propose adding new wrapped assets from 21.co in order to include TON exposure in the next rebalance.

21.co has built a wrapped implementation of TON available on Ethereum. The structure mirrors assets commonly used in DeFi like BitGo’s Wrapped BTC (WBTC) and seeks to improve on cross-chain exposure.

Motivation:

TON is now a top 10 cryptoasset and meets criteria for inclusion in AMKT.

Implementation:

We propose including the following assets for eligibility at the time of of the next reconstitution:

21TON In order to be implemented in the AMKT index, the assets must follow the criteria outlined in the AMKT methodology, which includes criteria for minimum liquidity thresholds and secondary trading. Should these assets meet the criteria at the time of the AMKT reconstitution, they’ll be added to the index like any other top 15 asset.

Risk Factors:

The implementation features a reliance on 21.co , introducing a custodial trust assumption for the underlying assets.

Dependency on 21.co could adversely impact AMKT holders if the wrapped assets were found to be undercollateralized or otherwise rehypothecated.

If the 21.co wrapped asset contracts were to have a security vulnerability, AMKT holders could be adversely impacted.

If liquidity for 21.co tokens were to be insufficient, AMKT creations and redemptions could be adversely impacted.

Relevant Links:

Tokens | 21.co

Conclusion:

We recommend AMKT holders vote FOR our proposal to add 21TON from 21.co, enabling exposure to one of the highest returning assets of the last quarter and improving tracking efficiency.