Baskets
A basket holds several tokens at once. You buy one share of the basket and you own a fixed amount of every token inside it. Burn the share and you get those exact amounts back.
Baskets are separate from launched tokens. They are not launched on a curve, they have no pool of their own, and they do not graduate.
The one rule that matters
Every share is backed by a fixed quantity of each token in the basket, and you can always burn it back into those quantities.
Not a target percentage. Not a share of a pool whose value moves with deposits. A fixed number of units of each constituent, written down when the basket is created and never changed.
That is what makes the exit unconditional, and it is worth understanding why.
Nothing can stop you redeeming
No price feed is involved in minting or redeeming. Redeeming is arithmetic over stored quantities followed by a transfer. It does not consult an oracle, so it cannot fail because:
- a price feed went stale over a weekend
- a feed was paused for a corporate action
- somebody disabled an asset in the registry
The basket does show a value in dollars, and that figure does come from price feeds. Nothing that moves your money reads it. It is for display only.
Nobody can change a basket after it is created, including whoever created it. There is no rebalance, no setter for the constituents or their quantities, no upgrade, no pause and no rescue function.
What a basket looks like
| Tokens in a basket | 2 to 8 |
| Mint fee | Up to 1%, set at creation |
| Redeem fee | Up to 1%, set at creation |
| Backing | A fixed quantity of each token, per share |
Weights drift, and that is deliberate
Because the quantities are fixed, the percentages move as prices move. A token that doubles becomes a larger slice of the basket on its own.
The alternative is rebalancing, which means someone has to be trusted to decide when and how to trade, and it puts a price feed back in the path of your money. This design refuses both. A basket drifting with its constituents is what an index does.
Buying and redeeming
You can mint a share by supplying the underlying tokens, or pay with ETH and have the basket acquire them for you. Redeeming works the same way in reverse: take the tokens, or take ETH.
Rounding always favours the basket, never you. Minting charges the rounded-up amount of each token and redeeming pays the rounded-down amount. So minting and immediately redeeming can never return more than you put in, and may leave up to one unit of each token behind. That fraction stays with the remaining holders.
Redeeming only part of a basket
Normally you redeem a share and receive every token in it. You can also choose which ones to take.
This exists for a specific situation. Some tokens can block an address or stop transfers. If one constituent of a basket does that to you, a redemption that insists on delivering all of them would fail completely, and one blocked token would trap everything else. Choosing what to take lets you walk away with the rest.
Taking everything is identical to a normal redemption, and this route can never deliver more of anything than a normal redemption would.
Before you buy one
- A basket is only as good as what is in it. Check the constituents, the same way you would check any token. A basket does not vet them.
- The fees are set at creation and shown on the basket. Up to 1% to mint and up to 1% to redeem.
- The dollar value shown depends on price feeds. Your ability to redeem does not.
- Weights will drift. What you bought today will not be the same mix in a month, even though your fixed quantities per share have not changed.
See Risk disclosures.