What is the DeFi Pulse Index (DPI)?
The DeFi Pulse Index (DPI) is a capitalization-weighted index designed to track the performance of leading decentralized finance (DeFi) protocols. It uses TokenSets on the Ethereum blockchain to weigh tokens based on market capitalization and circulating supply, offering a comprehensive view of the DeFi landscape.
- Tracks top DeFi protocols
- Weights tokens by market cap
- Built on Ethereum
Recent Video Interview
Main points of the interview:
- Launch of a new DeFi index by DeFi Pulse and its collaboration with the team.
- The index includes ten Ethereum tokens, managed through a market-cap-weighted methodology and rebalanced monthly.
- It simplifies access to multiple tokens via a single Uniswap trade.
- Future plans include broader integration into DeFi applications, fostering community involvement in token selection, and potential for additional indices.
Five Advantages of the DeFi Pulse Index
DPI provides several benefits to investors, making it a popular choice in DeFi.
- Simple to purchase via web3 wallets
- Decentralized and permissionless
- Community-driven decisions
- Offers yield farming, borrowing, and lending opportunities
- Used for collateral in DeFi protocols
Token Inclusion Criteria
For a token to be part of the DPI, it must meet specific criteria:
- Must be on Ethereum
- Minimum circulating supply of 7.5%
- Not classified as a security
- Demonstrates significant project usage
- Undergoes regular security audits
Index Maintenance and Reconstitution
DPI is maintained quarterly, with reconstitution in January, April, July, and October.
- Determination Phase assesses changes
- New tokens may be added or removed
- Updates happen on the first business day of the month
Risks of the DeFi Pulse Index
Investors should be aware of the potential risks associated with DPI, including:
- Regulatory changes
- Market volatility
- Technical vulnerabilities
Project Development
The Index Coop Leverage Suite is now live on Base, according to Index Coop's news page:
- Base offers low fees and fast transactions, ideal for ETH and stablecoin liquidity.
- Leverage Suite provides ETH2x and ETH3x tokens powered by Aave V3.
- Benefits include simplified access, lower fees, and built-in liquidation protection.
- Designed for both novice and experienced users seeking efficient leverage strategies in DeFi.
Other Projects in the Index Category
- Metaverse Index: captures entertainment, sports, and business trends shifting virtually.
- Neutrino Index Token: a DeFi platform on Waves with two native tokens, XTN and NSBT.
- Polylastic: tracks token performance in the evolving Digital Finance industry.
DeFi Pulse Index Price Analysis
As of November 24 2024 DeFi Pulse Index has a marketcap of $19M.
This is {{percentagefromath}} from its all time high of $656.49.
In terms of its tokenomics, there's a total supply of 177K with 100% currently outstanding.
Keep in mind DeFi Pulse Index has a fully diluted value of $19M which many investors might interpret as overvalued.
Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.
Summarized in part by ChatGPT 4 and Claude
