If you into crypto, you surely heard about DeFi, which stands for Decentalized Finance. It?s an umbrella term for various finical products, which run on a blockchain. Right now, the majority of all DeFi Tokens are running on the Ethereum platform. By the way: That’s why they are called tokens and not coins, a “coin” running on top of another blockchain is called token. A “coin” running on its own blockchain is called coin. Anyway…
The DeFi Pulse Index is a blockchain financial product that lowers the barrier to entry for new users who lack the expertise to gain exposure to DeFi, and provides experienced users with exposure to DeFi through one single asset. (https://defipulse.com/blog/defi-pulse-index/)
I am just a simple guy I don?t want to take the dive into the DeFi rabbit hole. APY, Farming, Lending, Automated Marked Maker and Flashloans are terms, which confuse me. I just don’t have the time learn all this stuff. I?ve spend a little time to get what impermanent loss means for a liquidity provider and it blew my brain away. But I love gains, and these DeFi products have nice gains. So what do I do? I looked for an index fund for DeFi products and came across DeFi Pulse. I knew the site https://defipulse.com/ for a while, it gives you good overview over the current DeFi Market. Recently they launched their own Index token, called DeFiPulse Index ($DPI). An index token works similar like an ETF fund, it basically creates a basket containing assets like stocks or bonds an investor can buy a share of that basket. If you want to invest into the S&P500 index, you could buy every stock of it or simply just buy an S&P500 ETF.
$DPI itself is an ERC20 token, which runs on Ethereum, it has a capitalization weighted index where the vaule is based of a DeFi projects market cap. It is not a synthetic fund, all its underlying assets were bought by the fund and you can redeem your token of each product via a smartcontract.
The following tokens are included in the index at launch:
YFI, LEND, SNX, COMP, MKR, LRC, REN, KNC, BAL, REPv2
So long story short, DefiPulse Index is an index fund, which consists of 10 of the most popular DeFi tokens on the Ethereum blockchain. It?s made by tokensat and not really decentralized because the monthly rebalancing is made by the team, maybe that will change in the future. So if you want to invest in DeFi don?t play the lottery by choosing one product, buy an index fund like DeFi fund like $DPI.
Tokensets: https://www.tokensets.com/about
Coingecko: https://www.coingecko.com/en/coins/defipulse-index
Medium : medium.com/set-protocol/in…ucing-the-defi-pulse-index-on-tokensets-79f87c6b295b
Uniswap: app.uniswap.org/#/swap?outputCurrency=0x1494ca1f11d487c2bbe4543e90080aeba4ba3c2b
Listed on UniSwap, Bilaxy, SushiSwap, AEX, Hotbit, 1inch. Loopring, Linkswap, Coinpark
