Compared with other crypto index projects, Phuture bypassed the clunky liquidity additions of existing index designs based on Balancer's smart pools. For example, When pools in Balancer’s are created, they will have limited liquidity to prevent investors from depositing a single asset due to the large slippage they will face. Hence, investors are asked to provide enough of each asset, which doesn’t make any sense because the reason why vast majority of investors buy index products is that they don't actually own the underlying assets.

Phuture, on the contrary, use external sources of liquidity to separate the cost of execution from the value locked in the platform index, which provides the freedom to invest in any whitelisted asset. At a high level, Phuture consists of a pool of set weights, so a rebalancing swap between two assets spontaneously affects the weights of multiple indices. The computational complexity is instantly reduced.

Phuture brings more logic to the rebalancing process through two active approaches: Rebalancing Bands and Rebalancing Surfaces. The combination of these two concepts minimizes the value spillover in the rebalancing process. A lot of math is involved so I don’t fully understand the magic, but FYI, you could look at their official doc to know more details.

In addition, this index creation tool defines the segments within the cryptocurrency market and the properties of the assets in each segment, and implements a passive strategy through a tracking function. This allows the user to track the leading assets within a sector with a selected weighting approach. The end result is an index product that remains representative at all times.

Currently, Phuture is operated as a fully DAO. The organization believes democracy and the power of the community. collective. Each community member has the ability to participate in ongoing discussions, propose new ideas and vote on existing proposals by joining its Discord and Discourse. Their governance token is called $PHTR. It is used to reward keepers for performing key platform functions such as rebalancing, recapitalization, and repricing, in addition to the regular governance functions. It could be traded as well: the current price is 0.34$ as I write, and I have no doubt it could skyrocket to the moon as long as we the community keep what we are doing right now.

Punctual Finance is still at a very early stage. The main app is not fully launched, but you could see their progress inside the community, and the contributors are very responsive to your questions. Moreover, the community not only focuses on the project itself, but also set a goal to help crypto newcomers to learn. They have written a couple of blogs to educate us Defi basics like what Defi means, what a lending is, how to use DEX, etc. I believe, with the effort of all our community members, a bright future is forseen.

Reference

https://docs.phuture.finance/