Arbitrove index:

Arbitrove Protocol is a system that allows people to easily create an investment index that includes many different ways to earn money. Instead of just holding tokens, the system will automatically move money to different strategies that earn money. The first index available is called ALP. At first, creating an index will require permission, but in the future, anyone will be able to do it.

Composition:

Arbitrove Protocol is creating an investment option called ALP that will include a group of tokens that earn money through various strategies. These tokens are GMX, MAGIC, GRAIL, DPX, JONES, RDNT, and GNS. They are put into a special vault to earn more money for investors.

According to a simulation, ALP is expected to earn around 54% yield through different blue-chip tokens on the Arbitrum network. Additionally, investors who use ALP will also receive an emission of a cryptocurrency called $esTROVE.

Minting & Redemption:

Arbitrove Protocol has a product called ALP that lets people invest in a group of digital assets called an index. People can deposit Ethereum (ETH) or other Arbitrum tokens to mint ALP, which is determined by the value of the assets in the index. During the bootstrapping period, only ETH deposits and withdrawals are allowed.

The cost to invest in ALP changes based on the assets included and their values. If an asset's value is below the target amount, the fee to invest is lower to encourage more investment. If an asset's value is above the target amount, the fee to invest is higher to discourage investment.

This dynamic deposit fee helps the index automatically balance itself to achieve its target composition.

ALP & TROVE Yield: Once you have ALP tokens, you can "stake" them on Arbitrove's platform to earn esTROVE tokens and some profits generated by the strategies they use. Arbitrove earns these profits by investing in different ways, like putting money in cryptocurrency exchange pools, and then sharing the profits with ALP token holders. Later on, when a certain setting is turned on through a voting process, some of the profits will also be shared with people who hold TROVE tokens, which can also be earned by staking your ALP tokens. You don't need to pay any fees to stake TROVE tokens, and they can be sold or traded right away. If you have esTROVE tokens, they will be gradually "vested," or made available to you, over a period of one year starting in September, and you can keep staking them after that.

docs.arbitrove.finance/alp-arbitrum-index-token/protocol-mechanics