I would like to create a couple of indexes related to 0xuniverse. Pre requisite is having a feedback here if the all operation makes sense.
The game has a big audience but went through financial troubles because of high gas costs and stall in trading.
I can imagine that investors have also assessed a better capital allocation in the booming defi.
In my opinion there are two dimensions:
- one centralized which is the gaming dimension which I would not underestimate for the potential audience. The L2 ‘galaxie(s)’ are active and bring people in the game
but imho assets there have not a value comparable with native ethereum ones.
- one is decentralized and is the NFT one in the original ethereum galaxy.
There, the assets (planets) have a max fix supply 500k commons, 400k rares both not relevant for funds as too cheap and 100k epics and less than 120 legendary…
The epics are classified by resource and approx 20k of them can be classified as Lepic (they have legendary resource). Note that the planets discovered till now are less than 50% and
the cost of discovery plus increasing difficulty will make very hard to go over 60% of existing planets in ethereum.
In my opinion lepics could be a good asset to back up an index. The reason is that they were trading between 0.025 and 0.055 before the gas cost explosion and in average at 0.035
1k lepic planets could back a 35 ether index. In order to have a meaningful index we should have trades and not only players dumping assets at low gas price. I believe that there is a best case scenario which can happen based on the following use cases:
- the arbitraging between assets in game and assets in the index that are described in the lightpaper.
- an additional pseudo arbitrage. the game include an asset, partially centralized but handled properly (simply requires trust in the game owners servers), energy. This can be transformed in an erc-20 token and traded. Planets include limited amount of energy. Players can mint from the index adding exahusted lepics and redeem hoping to get randomly planets which still have energy.
- another operation mint-redeem could be made by exchanging lower grade lepics compared with the average included in the index.
- A renewed activity in game can bring income to game owners and make them more active (they are in passive mode currently). I believe that the game-dimension on top of collectible one could add long term value to the assets.
Index backed by legendaries.
Legendaries are imho a fantastic asset if, for the less valuable, owners are interested to created 1-1 indexes at 10-15 ether evaluation, or we can identify the 10 less valuable and create an index out of it (obviously the first couple of legendaries must be added and the owners found: i don’t own any legendary planet)
we have to consider the eventual capability of the 0xuniverse contract owners to mint planets at will: it would be suicidal but it has to be excluded. Therefore this should be clarified with them and excluded in the smart contracts.
the list of the allowed asset backing the lepic index can be actualized each 2-3 months. They are still discovered and the index should consider it.
Do you think that an index like the lepics one could make sense? Could it be possible to incentivize the first minters in case? (it would be me at first …).