Right now NFTX has five D1 CryptoPunk funds: PunkBasic, PunkFemale, PunkAttr4, PunkAttr5, and PunkZombie. Each of these funds can be found on the NFTX homepage.
Since all five of the D1 CryptoPunk funds are used as inputs to the D2 PUNK token, they will all have D1/ETH Balancer pools. These D1/ETH pools are meant to seed liquidity into the higher level D2 pool. Below are the links to each of these D1/ETH pools:
Each of these five D1/ETH pools also has a “Balancer pool token” (or BPT) which is used to keep track of how much of the pool each LP (liquidity provider) owns. You can find a link to the BPT by clicking on the links above. For example, you will see on the PUNK-BASIC/ETH page that its BPT is called PUNK-BASIC-LP.
The next step in creating the D2 PUNK fund was to combine all five of the D1 CryptoPunk funds into a single Balancer pool. By doing so, we also create a BPT (Balancer pool token) which, in essence, is a CryptoPunk index fund because it grants equal ownership to all five of the D1 funds by holding it. We call this Balancer pool token PUNK-CORE and you can view its Balancer page via this link.
The final step in the process is for us to take PUNK-CORE and deposit it into NFTX to create PUNK. This step is not entirely necessary. Theoretically, everyone could just use PUNK-CORE as the index fund, but by locking it in NFTX and wrapping it as PUNK we get a couple benefits. The primary benefit is that we have more control over the total supply and decimal placing. For example, if you check you will notice that every PUNK is equal to exactly 1000 PUNK-CORE. Although the NFTX frontend is still in the process of being upgraded, you can view the D2 fund page via this link. That page also shows the address of both the PUNK token and PUNK-CORE.
- PUNK is a token that wraps PUNK-CORE.
- The PUNK token fund can be viewed here
- PUNK-CORE is a BPT (balancer pool token) that combines:
- (20%) PUNK-BASIC
- (20%) PUNK-FEMALE
- (20%) PUNK-ATTR-4
- (20%) PUNK-ATTR-5
- (20%) PUNK-ZOMBIE
- The PUNK-CORE page can be viewed here.
There is also a PUNK/ETH Uniswap pool which has been created and can be viewed here.
Although prices will now fluctuate, at creation each fund had the following price:
PUNK-BASIC — 5 ETH
PUNK-FEMALE — 6 ETH
PUNK-ATTR-4 — 6 ETH
PUNK-ATTR-5 — 20 ETH
PUNK-ZOMBIE — 83 ETH
Since the average of these numbers is 24, we decided to create the PUNK fund to begin at 24 ETH. Since PUNK has 20% in each of those 5 funds, that means it has 20% of 24 ETH in each fund (i.e. 4.8 ETH). By dividing 4.8 by each of the prices, we can then determine how much of each underlying fund PUNK grants ownership to. For example, with 4.8 ETH invested in PUNK-BASIC, that means we own 4.8/5 (or 0.96) PUNK-BASIC by owning 1 PUNK. This means, upon launch, each PUNK token was equivalent to owning:
0.96 PUNK-BASIC +
0.8 PUNK-FEMALE +
0.8 PUNK-ATTR-4 +
0.24 PUNK-ATTR-5 +
The process of redeeming a PUNK token will mean first unwrapping to get PUNK-CORE, and then returning PUNK-CORE to Balancer to get each of the underlying D1 funds. It is already possible to do this but it involves interacting with the NFTX smart contract directly. In the coming week we will be upgrading the NFTX frontend to make this process more straightforward. In the mean time we remind people that there is no reason to ape into PUNK—at the end of the day, owning PUNK is just another way to invest in CryptoPunks.