The Permaweb Index launches on 3.14 (Pi Day), introducing a new model for funding crypto projects. Users can allocate their AO yield to Permaweb Index projects to earn PI tokens. This guide explains how to allocate AO yield step by step.
What is the Permaweb Index?
The Permaweb Index introduces a fair launch funding mechanism, allowing the community to support projects while enabling builders to secure sustainable development funding.
The PI token acts as a default means of exchange across the permaweb, offering broad exposure to the ecosystem without requiring active management. Each PI token represents ownership in key permaweb assets:
- 33.3% $AR (Arweave)
- 33.3% $AO (AO)
- 33.3% Fair launch projects
More info on the Permaweb Index here
How does AO yield work?
Your AO allocation is determined by a combination of:
- Your Arweave (AR) holdings in a self-custody wallet
- Your deposited assets (e.g., stETH, DAI)
When you bridge stETH or DAI to AO, your original deposit remains in a trustless, audited contract on Ethereum while the native yield is distributed to support ecosystem projects and builders, helping fuel AO’s growth. Your assets can be withdrawn at any time.
More info on the economics of AO here.
How to deposit stETH and DAI to accrue AO
- Go to the AO Mint page.
- Connect ETH Wallet in the Deposits section.
- Deposit stETH or DAI by entering the amount.
- If you don’t have stETH or DAI, swap other tokens for stETH or DAI before depositing.
- Enter the Arweave wallet address where you want to receive AO tokens.
- Sign the transaction in your Ethereum wallet to confirm the deposit.
- Receive AO tokens directly in your Arweave wallet.
How to allocate AO yield
AO allows you to customize how you allocate your yield. On the Yield page, you can choose:
- PI: Receive a diversified allocation: 1/3 AO, 1/3 Arweave (AR), 1/3 ecosystem project tokens
- AO: Keep earning AO. Your AR holding yield and deposits will continue accruing AO without reallocation.
- AR: Convert your AO yield into Arweave (AR), which can be used for permanent data storage.
Fair Launch token customization
Under “Choose Your Yield”, you can further customize by selecting specific fair launch projects to allocate your yield.
- Click Details & Add under a project description to allocate AO yield to that project.
- The PI allocation chart (on the right) updates in real time.
- Once satisfied with your allocation, click Save Changes.
What does it mean to allocate AO yield to fair launch projects?
Allocating your AO yield to an ecosystem project directs your accrued yield to fund its development. In return, you receive the project’s fair launch token, giving you a stake in its growth. This model ensures a more equitable funding system, allowing builders to raise capital without traditional gatekeepers while letting users participate in the project’s early success.
Summary
The Permaweb Index introduces a new model for funding crypto projects. By allocating AO yield to Permaweb Index projects, users earn PI tokens, which provide diversified exposure to key permaweb assets.
When the Permaweb Index is live on PI Day (3.14) users can customize their yield allocation to receive AO, AR, PI, or specific fair launch project tokens, ensuring a flexible and fair funding mechanism for both builders and the community.
Resources
AO
Autonomous Finance
Permaweb Index Projects
This is not financial advice. Please do your own research.