Libertypool uses an index of 20+ currencies with rebalancing them every month making it as diverse as possible. This way you get to invest in almost the whole cryptocurrency market as well. This covers almost 90% of the whole cryptocurrency market.
The weighing scheme is not based on instantaneous market capitalisation as that would make the index very volatile. We choose to take the square root of the market capitalisation. This was done so that not too much weight is given to the non-liquid funds at the bottom that may not give as good returns.
Rebalancing is done quarterly and reweighing is done monthly based in order to keep up with the pace of this ever-changing market.
To know the complete formula of the index, visit CCi30.com