What is a BSKT?
A BSKT (pronounced "basket") is a tokenized investment portfolio on the blockchain. Each BSKT holds a collection of ERC-20 tokens in defined proportions, managed by a single on-chain fund manager.
How BSKTs Work
A BSKT works like an on-chain index fund or ETF. A manager selects a set of tokens and assigns each a target weight (e.g., 40% ETH, 30% LINK, 25% AAVE, 5% ALVA). Investors can deposit ETH into the BSKT, which is automatically converted into the basket's constituent tokens according to those weights.
In return, investors receive LP tokens: fungible tokens representing their proportional share of the basket. These LP tokens can be redeemed at any time.
Key Properties
Non-Custodial
The BSKT smart contract holds all underlying assets. The manager can change the basket's allocation (rebalance), but cannot withdraw investor funds. Only LP token holders can redeem their own share.
Transparent
Every BSKT's allocation, performance, and transaction history is fully visible on-chain. The Alvara app displays real-time data including current holdings, price history, and manager activity.
ALVA Allocation
On Ethereum, every BSKT currently includes a minimum percentage of ALVA in its allocation, creating organic demand for the ALVA token and connecting every basket to the broader Alvara ecosystem. With the upcoming Base deployment, this becomes a variable parameter — including ALVA unlocks reduced platform fees rather than being a strict requirement.
Manager-Controlled
Each BSKT has a single manager who controls the investment strategy. Managers can:
Rebalance token allocations at any time
Trigger emergency controls if needed
Earn management fees on assets under management
Open to All
Anyone with a Web3 wallet and 0.1 ETH can create a BSKT. There are no applications, licenses, or minimum track records required.
BSKT vs. Traditional Funds
Minimum to start managing
$100K+ and legal setup
0.1 ETH
Custody
Third-party custodian
Smart contract (non-custodial)
Transparency
Quarterly reports
Real-time, on-chain
Investor redemption
Lock-up periods common
Instant, any time
Fees
2% management + 20% performance typical
Set by protocol
Regulatory overhead
Extensive
Permissionless
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