HOOD10 Methodology
Mechanical rules, published in advance. The index has no discretionary committee — if a token meets the screens, it is in.
1. Universe
Every token launched on Robinhood Chain with a live DEX pair is in the eligible universe. The index selects the top 10 by market cap that also clear the screens below.
2. Eligibility screens
- Minimum liquidity: $50K in the deepest pair.
- Minimum 24h volume: $25K.
- Minimum age: 30 days since first trade.
- Contract verified, or ownership renounced.
- No transfer blocklist, mint-after-deploy, or honeypot behaviour.
3. Weighting
Weights are proportional to fully diluted valuation: each constituent's raw score is its FDV, normalised across the basket. Bigger, more established coins carry more weight — so the index leans into strength instead of splitting evenly.
This is the Nifty 50 rule set applied to memecoins. Nifty weights by free-float market cap; we weight by FDV, the closest on-chain equivalent. A hard cap of 33% applies to any single token, and the three largest constituents combined cannot exceed 62%. Excess weight is redistributed pro rata across uncapped names and re-checked until every constraint holds.
4. Rebalance calendar
Weekly rebalance — Every Monday, 00:00 UTC. The universe is re-screened and re-ranked every week, so names can be added or removed automatically. Additions and removals are published 2 days before they take effect, so the market can price the change instead of being surprised by it.
A Nifty-style buffer prevents churn: an incumbent only exits once it falls below rank 13, and a challenger only enters once it ranks inside the top 7. Coins hovering at the cut-off are left alone.
Execution is spread across blocks with a per-trade size cap to limit slippage in thin pairs.
5. Emergency removal
A constituent is removed immediately — without waiting for the weekly date — if it rugs, turns into a honeypot, or its liquidity falls below 25% of the eligibility threshold. Its weight moves to ETH until the next scheduled rebalance redeploys it.
6. Fees
- Mint: 0.30%
- Redeem: 0.30%
- Streaming: 1.00% per year, accrued in index tokens
Fee split:
- 60% — Treasury / ops
- 40% — $MLUE buyback & burn
7. Risks
- Thin liquidity means rebalances can slip; trade size is capped per block and executed over time.
- A single rug costs at most the capped weight of that name — around 2% at typical basket weights.
- The vault is a high-value target. Admin functions are timelocked, there is no upgradeability, and an audit precedes mainnet.
