What Is Lykke Crypto Index (LyCI)?
LyCI is an instrument that consolidates and tracks the performance or value of a selection of underlying cryptocurrencies. This provides a snapshot of how this selection of the crypto market performs overall in a single, easily understandable measure. By using this instrument, it is easy to determine that even if one digital asset in the market goes up or down dramatically, the index will reflect the global performance of all the assets therein. This will give a more accurate picture of the overall market performance excluding idiosyncratic risks of single assets.
How LyCI Help Users
By tracking the LyCI tool on a regular basis, users stand to benefit in the following ways:
- There will be useful standard of cryptocurrencies against a measure of the market’s overall performance.
- It will lead to instant measure of general performance of the crypto market, as measured by the largest players
This, in the end, will lead to various advantages. There are big benefits of investing directly in LyCI instead of investing in individual crypto assets.
- It reduces risk by spreading investment across a diversified portfolio of the largest digital currencies in the market
- It reduces time and energy by not having to investigate and research individual assets, picking only those preferred by the user while leaving those they don’t want to invest in
- It reduces cost by not having to address spreads across several transactions but only across those transactions related to the single index—with no commissions on the LyCI Exchange.
Which Assets Are Covered?
LyCI is a weighted index, which implies that the proportion of each digital asset contained in the group depends on their total market capitalization. LyCI deals with the current mid-market prices of the 25 cryptocurrencies with the largest market capitalization—those that are worth the most in terms of total asset value.
LyCI solution is to connect the Old and New world by building a regulated blockchain-based market infrastructure that enables institutional access and brings long-term patient liquidity to the crypto economy, improving price discovery and decreasing volatility. The key solution components are:
Regulated Trading Venues And Brokerage Network
Regulation and compliance is the biggest hurdle that delays widespread adoption of the crypto economy and digital markets. The regulatory landscape is quickly forming and LyCI is a part of this process. The platform works with the regulators across the globe to introduce digital assets and operate trading infrastructure that will be fully compliant with securities markets laws and regulatory standards.
Liquidity Hub And Alpha Trading Engine
LyCI global liquidity network connects separate and isolated marketplaces together, improving execution costs. The focus at LyCI will be the deployment of Alpha Engine algorithm on trading venues and exchanges that provide trading in digital assets issued on distributed ledgers.
Blockchain Settlement Infrastructure
LyCI Exchange has pioneered interoperable and scalable infrastructure for settlement on public blockchains. The infrastructure operates using Bitcoin’s OpenAsset protocol and now extended to Ethereum-based ERC20 standard.
LyCI Accelerator will offer regulatory-compliant solution for digital assets issuance (ICO/ITO/TGE) to provide advisory, technical support and brokerage services to facilitate new financial instruments.
Open Apps System
LyCI creates an open ecosystem to encourage the transparency and adoption growth: open APIs, Whitelabel solutions, and services for partners. The full solution set is open-sourced under MIT license, which encourages the transparency and ecosystem growth.