Basket Weights
The fixed proportions of each asset inside an index basket, defining what share of the basket's total value each component represents.
Basket weights are the fixed proportions assigned to each asset inside an index basket, defining what share of the basket's total value each component represents. A hypothetical basket weighted 50 percent ETH, 30 percent BTC, and 20 percent stablecoins means that, at the moment the weights are set, half of every dollar deposited buys ETH. In onchain index tokens, the weights determine how a deposit is split when new shares are minted and what mix of assets a holder receives when shares are redeemed.
Weights can be chosen in several ways. Market-cap weighting sizes each position in proportion to the asset's market capitalization, equal weighting gives every component the same share, and custom weighting reflects a creator's specific thesis. It also matters whether weights are enforced over time or allowed to drift. Many onchain baskets fix the token quantities at creation, so the value split shifts as prices move unless the product rebalances back to target. On Tessera, for example, a creator sets the weights for 2 to 30 assets at launch, and an immutable vault holds those assets in-kind behind a single ERC-20.
When evaluating any index token, read the actual weights onchain rather than trusting the name. A basket that sounds diversified may concentrate most of its value in one volatile asset, and a heavy weight in an illiquid token can make minting and redemption expensive. Fixed weights in an immutable contract are transparent, but they also cannot be changed if market conditions shift, so understand that tradeoff before you buy. As always in DeFi, none of this is financial advice.