Composing Your Allocation
The first step in creating a BSKT is selecting which tokens to include and how much weight each should have.
Selecting Tokens
Search for and add ERC-20 tokens available on the Ethereum network (Base and other networks coming soon). The token list is sourced from validated registries, so you only see legitimate tokens.
For each token you add, you assign a weight: the percentage of the basket's total value that should be allocated to that token.
ALVA Allocation
Currently, every BSKT on Ethereum must include ALVA as part of its allocation. The minimum ALVA percentage is set by the protocol and is enforced automatically. This requirement:
Creates consistent demand for the ALVA token
Connects every basket to the Alvara ecosystem
Ensures all BSKTs contribute to the protocol's tokenomics
The remaining allocation is entirely up to you.
Note: With the upcoming Base deployment, the mandatory ALVA minimum will become a variable parameter. Including ALVA in your allocation will unlock reduced platform fees rather than being a strict requirement.
Weight Rules
All weights must add up to exactly 100%
Each token must have a weight greater than 0%
The ALVA allocation requirement must be met (see above)
There is no maximum number of tokens, but larger baskets may incur higher gas costs
Token Tax Detection
Some tokens have built-in buy or sell taxes. The platform automatically detects these taxes during the composition step and adjusts slippage settings per-token to ensure transactions complete successfully.
If a token has a detected tax, you'll see it noted in the interface. You can also manually adjust per-token slippage if needed.
Tips for Good Allocation Design
Diversification: Spreading across multiple tokens reduces the impact of any single token's decline
Conviction weighting: Assign higher weights to tokens you have the most confidence in
Liquidity awareness: Tokens with very low liquidity may experience higher slippage during rebalancing
Rebalancing frequency: Consider how often you plan to rebalance when choosing the number of tokens. More tokens means more complexity.
Last updated