🧠 ALIX — Whitepaper v1.0
Abstract
ALIXINDEX100 represents the first fully decentralized index of autonomous digital assets, developed and executed on the Virtuals Protocol. Its purpose is to provide investors with transparent, algorithmic exposure to the top 100 performing tokens within the Virtuals ecosystem — ranked, weighted, and rebalanced automatically using real-time on-chain and market data.
The operating logic is straightforward:
Virtuals In → ALIXINDEX100 → Virtuals Out
Entry, management, and exit — all handled autonomously.
When a user deposits Virtuals, 1% of the amount is automatically allocated to buy back and burn $ALIX, creating a continuous deflationary mechanism. The remaining 99% is deployed to construct and maintain proportional exposure to the top 100 assets in the ecosystem.
Index weights are dynamically computed according to the following formula:
- • 60% Market Capitalization
- • 30% Trading Volume
- • 10% Liquidity Depth
All processes occur autonomously and are fully verifiable on-chain.
1. Vision
“Own the market, don’t chase it.”
The cryptocurrency landscape evolves at a speed no individual can realistically track. Every day, dozens of tokens emerge, peak, and fade — making active selection both time-consuming and capital-intensive.
ALIXINDEX100 eliminates the need for constant monitoring by offering a single asset that provides diversified, algorithmically balanced exposure to the most relevant, liquid, and active tokens in the Virtuals ecosystem.
In the long term, ALIX seeks to evolve into a modular index factory, enabling users to design, launch, and govern their own algorithmic ETFs. The journey begins with ALIXINDEX100 — the foundational layer for decentralized indexing.
2. Token Model
The system operates through two primary assets:
- Virtuals: the base currency and entry point of the platform.
- $ALIX: the deflationary governance and reward token that benefits from all ecosystem activity.
Operational Flow
- 1. Deposit — Users deposit Virtuals into the Vault.
- 2. Fee Allocation — 1% of each deposit is automatically used to buy back and burn $ALIX.
- 3. Minting — The Vault issues ALIXINDEX100 shares reflecting the live value of the underlying basket.
- 4. Rebalancing — Asset weights are auto-adjusted daily according to updated index parameters.
- 5. Redemption — Holders can redeem their shares for Virtuals at the current Net Asset Value (NAV).
This structure forms a closed, self-sustaining economic loop, with no reliance on stablecoins or external bridges. Every transaction remains transparent and traceable on-chain.
3. Core Functionality
🎯 Objective
To create a fully autonomous, on-chain ETF that accurately tracks the top 100 tokens across the Virtuals ecosystem based on liquidity and market relevance.
🔍 Mechanism
- 1. Collects market data from CoinGecko, CoinMarketCap, and Virtuals API.
- 2. Ranks all eligible tokens by market capitalization, trading volume, and liquidity depth.
- 3. Selects the top 100 tokens.
- 4. Calculates proportional weights using the 0.6 / 0.3 / 0.1 model.
- 5. Executes optimized swaps through 1inch Fusion to rebalance the Vault.
- 6. Publishes a verifiable snapshot of the new state (timestamp + IPFS hash).
📊 User Journey
- • Deposit Virtuals and receive ALIXINDEX100 shares.
- • Monitor portfolio performance, composition, and NAV via a real-time dashboard.
- • Redeem shares at any moment to reclaim Virtuals at market value.
Each ALIXINDEX100 token represents a verifiable, fractional exposure to the evolving top-100 basket.
4. User Interface
Landing Page
- • Hero Section: “Own the market, don’t chase it.”
- • Connect Wallet button for authentication.
- • If the wallet contains no Virtuals → access restricted with message prompt.
- • If Virtuals are present → dashboard access is granted.
Dashboard Features
- • Live NAV, updated every 15 seconds.
- • Top-100 composition: token name, weight %, 24h performance, and market cap.
- • Deposit Module: input amount and preview expected shares.
- • Redemption Module: instant withdrawal via MEV-protected 1inch Fusion.
- • User History: complete record of deposits, withdrawals, P/L %, and transaction hashes.
- • Public Backend Data: daily snapshots and transparent vault updates.
User Notifications
- • Visible alerts for deposits, rebalances, and vault status changes.
- • Daily cycle prompts highlighting key automation steps.
5. Technical Workflow
Core Modules
| Module | Function |
|---|---|
| Vault Smart Contract | Manages Virtuals deposits and mints/burns ALIXINDEX100 shares. |
| Scheduler (Gelato) | Automates the daily autonomous rebalance cycle. |
| Data Fetcher | Aggregates market metrics from CoinGecko, CoinMarketCap, and Virtuals API. |
| Weight Calculator | Computes the 0.6 / 0.3 / 0.1 weighting model for the index. |
| Rebalancer (1inch Fusion) | Executes optimized swaps to realign holdings with targets. |
| Snapshot Manager | Publishes timestamped snapshots to Postgres and IPFS. |
| FailSafe Guardian | Pauses the system automatically in case of anomalies. |
Daily Cycle (UTC)
| Time | Action |
|---|---|
| 00:00 | Fetch token data |
| 00:05 | Compute new weights |
| 00:10 | Save public snapshot |
| 00:15 | Update vault targets |
| 00:20 | Execute rebalancing (≤10 swaps) |
| 00:30 | Notify users and refresh UI |
Security Parameters
- • Maximum slippage: 0.5%
- • Maximum weight per token: 10%
- • Minimum liquidity requirement: $50,000
- • Rebalance deviation threshold: 2.5%
- • Auto-pause triggered on feed discrepancies or liquidity failure
6. Design Principles
- • Autonomous — Entirely self-operating with zero manual intervention.
- • Transparent — Every transaction, swap, and rebalance is traceable on-chain.
- • Accessible — Open participation for any Virtuals holder.
- • Deflationary — Continuous $ALIX buybacks driven by system fees.
- • Symmetric — All operations — entry and exit — occur exclusively in Virtuals.
7. Evolution Roadmap
Phase 1 — ALIXINDEX100 (2025)
Launch of the autonomous top-100 crypto index.
- • Deployment of smart contracts and user dashboard.
- • Quantstamp audit and mainnet rollout.
- • Automated rebalancing and public snapshot system.
- • Integration with the Virtuals Protocol infrastructure.
Phase 2 — Thematic ETFs (2026–2027)
Expansion into specialized algorithmic portfolios.
Each index follows the same Virtuals-In → ALIXINDEX-Out operational model:
- • ALIXMEME50 — Focused on high-traction meme tokens.
- • ALIXGAME30 — Covering metaverse and gaming projects.
- • ALIXTECH20 — Dedicated to AI and infrastructure assets.
- • ALIXDEGEN10 — Experimental high-volatility portfolio.
Phase 3 — User-Generated ETFs (2027–2028)
Empowering individuals and institutions to launch their own on-chain ETFs.
Users will be able to:
- • Define selection logic (e.g., “top 20 gaming tokens”).
- • Deploy their ETF on-chain with a single transaction.
- • Earn protocol fees each time others invest in their index.
This phase transforms ALIX from a single product into a decentralized indexing ecosystem.
8. Long-Term Vision
ALIX aspires to become the Decentralized Stock Exchange of Intelligence — a global network of self-governing, algorithmic indexes merging automation, transparency, and collective governance.
From AI agents to macro crypto assets, each index under ALIX symbolizes a new form of collective intelligence: a living ecosystem where information, capital, and computation converge.
In this vision, ALIX evolves beyond a protocol — it becomes the native currency of the autonomous digital economy.
9. Current Development Status
| Component | Status |
|---|---|
| Vault Smart Contract | ✅ Completed |
| Autonomous Backend | ✅ Stable & tested |
| Web Dashboard | 🚧 In development (Next.js + Tailwind) |
| Quantstamp Audit | 🕓 In progress |
| Testnet Launch | 🔜 Scheduled for November 2025 |
| Mainnet Launch | 🔜 Following audit completion |