Protocol

Methodology and rebalancing

How MEME500 weights are set (market cap and on-chain liquidity), the monthly review, membership rules, bounded rebalancing and capacity.

All docs as text

Weighting formula#

Each member's weight blends how big the coin is with how easily it can be bought on chain. Liquidity counts as much as market cap, because a coin that is large but thinly traded on ETH pools would make every ape and redeem expensive.

Target weight

raw_i    = 50% × marketCap_i / Σ marketCap  +  50% × ethLiquidity_i / Σ ethLiquidity
weight_i = raw_i, capped at 35% and floored at 5%,
           with the excess or shortfall redistributed pro rata across the others

Meme	Market cap	ETH liquidity	Cap share	Liquidity share	Raw blend	Target
PEPE	$1.85B	$34.7M	31.8%	55.6%	43.7%	35%
SHIB	$3.46B	$4.7M	59.4%	7.5%	33.5%	35%
SPX	$426M	$13.1M	7.3%	21%	14.2%	18%
MOG	$47.8M	$6M	0.8%	9.6%	5.2%	7%
NEIRO	$39.2M	$3.9M	0.7%	6.2%	3.5%	5%

Market data from 2026-10-05. PEPE and SHIB hit the 35% cap, NEIRO is lifted to the 5% floor, and the remainder goes to SPX6900 and MOG (18.3% and 6.7%, rounded to 18% and 7%).

Monthly review and timelock#

The composition and weights are reviewed monthly against the formula above.
Any change to target weights is scheduled on chain and only takes effect after a 48 hour timelock, so holders can see it coming and redeem if they disagree.
Membership rule: a coin enters or leaves MEME500 only after it qualifies (or fails to qualify) at two consecutive monthly checks. This avoids churning the basket on a single spike.
MEME500 only holds Blue chip memes from the approved list. See Approved list and tiers.

Bounded keeper rebalancing#

Because apes buy in proportion to current holdings, the basket drifts with prices just like a normal portfolio. Moving it back toward target weights is done by a rebalance keeper calling rebalance. Rebalances are bounded: each call has a maximum size and a minimum output, it can only trade toward the scheduled target weights, and it runs at most a few times per day. A keeper cannot withdraw tokens or change the targets. The owner appoints the rebalance keeper; none is appointed yet, so for now the basket simply drifts with prices.

Capacity and why SHIB's ETH liquidity matters#

Every leg of an ape must stay under the 3% price impact guard. SHIB is 35% of the basket but its main ETH pool (ShibaSwap) holds only about 581 WETH, far less than PEPE's Uniswap V2 pool. On a mainnet fork the largest single ape the pools could absorb was 24.85 ETH before the SHIB leg hit 3%; the other legs moved about 0.3% at that size. The contract caps each ape at 5 ETH, well inside that, and there is no cap on total deposits: larger amounts are split into several apes. Capacity grows if SHIB's ETH liquidity deepens or if a future review lowers its weight.