$ABX Alpha Base Index
The Alpha Base Index is a DAO-governed DTF, curating the Top 20 Base projects with the highest risk-adjusted growth potential, leveraging the collective intelligence of the Base Trenches to identify market opportunities.
Inclusion Criteria
A project must meet the following criteria to be considered for inclusion in the $ABX Index:
A. Fundamental Requirements
✅ Minimum Market Cap: $1M+
✅ Minimum Liquidity: $100K+
✅ Native to Base Chain or deeply integrated into Base ecosystem
✅ Strong Product-Market Fit (PMF) & adoption potential
✅ Clear and viable token utility
✅ Capable developer(s), strong team connections/backing
B. Sector Eligibility (Meta Categories)
A token must belong to one of these high-potential categories:
- AI & AI Infrastructure (AI agents, data layers, frameworks)
- DEFAI (Decentralized AI Finance) (AI-driven DeFi agents)
- DeFi & RWA (Stablecoins, tokenized real-world assets)
- Social Trading (trader communities, trading tools)
- Meme & Cult Coins (organic cults with social traction)
C. Tokenomics & Governance
✔ Preferably highly decentralized, fair-launched projects (no extreme VC dominance)
✔ Preferably doxxed teams for Social Trading & RWA projects
✔ Sustainable token emission model & non-extractive economics
Weighting Methodology
The $ABX Index does not auto-rebalance based on price action—it follows a long-term asymmetric growth model that allows winners to naturally dominate while losers are not averaged down.
Initial Weight Calculation
Each project’s starting weight is based on:
- Fundamentals (innovation, market demand, sector leadership )
- Market Capitalization (relative to peers within the index)
- Social Traction & Virality (network effect, brand awareness, engagement)
- Risk-Adjusted Growth Potential (potential upside vs. downside risk)
Market Cap-Based Tiered Allocation
| Market Cap (M) | Initial Weight (%) |
|---|---|
| $500M - $1B+ | 10% |
| $100M - $500M | 5-10% |
| $50M - $100M | 3-5% |
| $10M - $50M | 2-3% |
| $1M - $10M | 1-2% |
✔ No forced weight reduction—winners keep running
✔ No forced averaging down—weak performers are not artificially supported
*Rebalancing Framework
A. DAO-Based Monthly Rebalancing
Unlike traditional indexes, the $ABX Index does not rebalance based on price action alone. Instead, rebalancing is governed by the DAO on a monthly basis, where governors:
- Cut underperforming tokens if they lose traction, fail governance, or become irrelevant.
- Propose new potential winners that meet the inclusion criteria.
B. Token Removal Criteria
A token will be removed if:
❌ Severe decline in community engagement or project development
❌ Exploit, governance failure, or regulatory concerns
C. Token Addition Criteria
A token may be added if:
✅ Ranks within the Top 20 Base projects based on fundamentals and market potential
✅ Market Cap ≥ $1M and Liquidity ≥ $100K
✅ Demonstrates strong organic social traction (mindshare)
✅ Fits into the core index meta categories
Sector Allocation Guidelines
To maintain diversification and exposure across high-growth narratives, the index aims to follow these sector balance guidelines:
| Sector | Weight Range (%) |
|---|---|
| AI & AI Infrastructure | 30-50% |
| DEFAI (Decentralized AI Finance) | 20-40% |
| DeFi & RWA (Hybrid DeFi + Tokenized Finance) | 10-20% |
| Social & Trading | 5-10% |
| Meme & Cult Coins | 10-20% |
Governance & Adjustments
🔹 Governed by ALTT stakers – all rebalancing decisions are community-driven
🔹 Emergency Removals – tokens can be removed immediately if they are hacked, delisted, or face serious governance risks
🔹 No Artificial Weight Caps – best-performing tokens naturally gain dominance
Summary
🚀 The $ABX Alpha Base Index is a next-gen onchain index built to capture asymmetric growth across AI, DEFAI, DeFi, Social, and Meme sectors.
- Winners run freely—no forced selling.
- Losers are removed—no artificial averaging down.
- Governance-based rebalancing—no rigid auto-adjustments.
- Sector-balanced exposure—diversified but high-conviction.
💡 Powered by collective intelligence, optimized for decentralized alpha.
Anyone can create an RToken
In a similar way as how anyone can create a new trading pair on Uniswap, anyone can permissionlessly create a new Reserve stablecoin (RToken) by interacting with Reserve Protocol’s smart contracts. The protocol applies a system of factory smart contracts that allows anyone to deploy their own smart contract instance.
Creating an RToken can be done either by interacting directly with the Reserve Protocol’s smart contracts or any user interface that gets built on top of it. The first user interface for these smart contracts will be released by ABC Labs the company that's leading protocol development. Besides the creation of RTokens, this user interface will also support exploring usage and stats related to RTokens, RToken minting & redeeming, and RSR staking.
Non-compatible ERC20 assets
The following types of ERC20s are not supported to be used directly in an RToken system. These tokens should be be wrapped into a compatible ERC20 token to be used within the protocol. A concrete example is the use of Static ATokens for Aave V2.
- Rebasing Tokens that return yields by increasing the balances of users
- Tokens that take a "fee" on transfer
- Tokens that do not expose the decimals() in their interface. Decimals should always be between 1 and 18.
- ERC777 tokens which could allow reentrancy attacks
- Tokens with multiple entry points (multiple addresses)
- Tokens with multiple entry points (multiple addresses)
- Tokens that do not adhere to the ERC20 standard in general
Advanced RToken parameters
When deploying an RToken, the deployer has the ability to configure many different advanced parameters. The following list goes into detail about what these parameters do and some of the factors the deployer should keep in mind to set them.
As many of these parameters concern the Protocol Operations, we advise reading through that section of the documentation first—as it will give the deployer the necessary context to fully understand all parameters.
Trading delay(s)
The trading delay defines how many seconds should pass after the basket has been changed before a trade can be opened.
A collateral asset can instantly default if one of the invariants of the underlying DeFi protocol breaks. If that would happen, and we would not apply a trading delay, the protocol would react instantly by opening an auction. This would give only auctionLength seconds for people to bid on the auction, making it very possible for the protocol to lose value due to slippage.
The trading delay parameter may only be needed in the early days - before we get to a point where there is a robust market of MEV searchers. We expect that this parameter can be set to zero later on (once a robust market of MEV searchers is established).