The Tokenized Basket Index (TBI)

Sunrise, Glacier National Park

• A token that can be traded like an ‘index option’
• On long/short hedged index positions in baskets of crypto

The ‘tokenization of assets’ represents a trillion-dollar trend that’s here to stay in the global financial markets.

At Vectorspace AI X and as a team and company with deep knowledge domain expertise in the crypto markets, traditional markets along with financial language modeling, we’re always looking for new ways we can apply innovations from financial language modeling, the tip of the spear in financial AI today.

To that aim, we’ve developed a Tokenized Basket Index (TBI) product with similarities to existing traditional financial instruments like the Grayscale Bitcoin Trust (GBTC). The index will be converted into a fund where shares are distributed to owners of the DESCI token asset. The fund will be used to finance DeSci companies, teams and projects including capital deployment.

An ‘AI Agent’ is used to optimize one of our capital allocation models enabling capital to be weighted across components according their ranked score in the index. Ranked scores are based on a model that includes sentiment along with buy pressure/sell pressure indicators. Future scores will include data related to products, revenue, marketcap, price, volatility, sympathetic, parasitic and symbiotic relationships including other fundamental metrics.

An index is modeled and priced using the following 12 attributes:

1. Index Token: DESCI
2. Index Type: DeSci
3. Position Type: Long
4. Tokenized AI Model: TAM-v4.3
5. Tokenized AI Agent: TAA-v4.0
6. Index Options Pricing Model: IOPM-v1.3
7. Capital Allocation Model: AGM-XV2
8. TA Indicators: MACD, RSI
9. GPT Interface Type: 10.2
10. DSSP Hash: 2eE4i597bE39667d359cC428aDd91cb71b41C58t39
11. Wallet Address: 0x1579…C14cb714b7b4b39667d5c42ad1b714cb71b4
12. Ranked Components: [list of cryptos, stocks, options, ETFs]

The price of the DESCI token is calculated similar an ‘index option’ on Wall Street, using a standard index options pricing model, The Black-Scholes formula for a European call option:

A crypto specific variant:

Example base level pricing for the DESCI token made up of 3 DeSci tokens, TRAC, AXGT and VITA:

Calculating the weighted contributions:

Base level index price is 0.516:

This formula is combined with proprietary AI models, weights and probabilities representing variables such as sentiment and TA (Technical Analysis) indicators such a MACD (Moving Average/Convergence Divergence) score and standard Net Asset Value (NAV) modeling.

The fair market long-term intrinsic value of the TBI is directly connected to the AI model, investments and Net Asset Value (NAV) of the fund which is standard across global financial markets for funds, ETFs and Business Development Companies (BDCs). The DESCI token represents this value.

The DESCI token asset is distributed on the open market based on demand modeling and a network of Market Makers (MMs).

The fund receives a 10% interest payment for capital deployed to the VAIX HedgeFund.

This index will initially be traded on the ProBit Global exchange. Real-time Thematic Basket Indices will be enabled in upcoming releases.

For more information contact: vectorspacebios.science/finance, Telegram or support@vectorspace.ai