The Pilot Index Fund

The fees collected from the Liquidity Providers (LPs) will go into Pilot index fund which will back the pilot token. The value of The Pilot Token cannot fall lower than the underlying assets. As more users are joining the Pilot Protocol, the value of the $PILOT token will increase as the usage of the protocol is directly proportional to more fees earned and added to the index fund.

Burn token to get underlying assets

The only way to access the underlying assets/tokens is to burn pilot tokens. This creates a collateralized backstop to the $PILOT token.

Example

The index fund holds $10m worth of various tokens accumulated from “Vault fares” and “LP fees”.

• These tokens are $1m LINK, $3m UNI, $6m USDC.

• “John” would like to access these tokens in exchange for his PILOT tokens, of which he holds 0.1% of the supply.

• If John interacts with the index fund and burns all his tokens, he will be eligible to receive 0.1% of the supply of the index fund ($10,000 worth of various tokens).

• He would receive: $1000 LINK, $3000 UNI, $6000 USDC