A new DeFi index token from data provider DeFi Pulse and Set Protocol has surged in popularity since its launch indicating a huge demand for user friendly DeFi products.
Decentralized finance can be a bit of a minefield to those unfamiliar with the landscape. Tokens and protocols appear on a daily basis and many disappear just as quickly. It is not easy to keep up with this rapidly shifting environment so data provider DeFi Pulse has launched an ERC-20 token which indexes the top ten tokens in the sector.
DeFi Pulse Index Performing Well
The DeFi Pulse Index, or DPI, has been compiled in partnership with Set Protocol which provides TokenSets to broaden exposure and create a balanced portfolio. The top ten included in the launched DPI consist of YFI, LEND, COMP, SNX, MKR, REN, KNC, LRC, BAL, and REP. Token prices and circulating supplies are taken from CoinGecko, and there are strict criteria for entry to the Index.
The DPI token can be traded on Uniswap for users to gain exposure to all of these assets without having to spend gas fees in buying them individually. For whales, large bags can be purchased through the Set Protocol.
Set Protocol co-founder and CEO, Felix Feng, observed that the Uniswap liquidity pool for DPI was performing very well in its initial hours trading.
Trending Stories
Two awesome things I'm noticing about the DeFi Pulse Index ("DPI"):
1) 6 hours since launch of the DPI, the Uniswap pool has done $1.3M in volume and generated ~$4k in fees for a liquidity pool that is $600k in size. That's 2.6% a day in return in a pool. pic.twitter.com/LOizjRyCC8
— Felix {Setoshi} Feng (@felix2feng) September 15, 2020
At the time of writing, Uniswap.info was reporting that the liquidity for the DPI/ETH pool had climbed to just below $640k. This is higher than the total value locked in beleaguered lending protocol bZx, and even the TVL of prediction markets protocol, Augur.
Total volume for the first day, September 14, was around $1.3 million and the pool was paying out a daily return of 2.6% according to Feng. The DFP token itself is currently trading for $123 at the time of writing.
Behaves Like a DeFi ETF
Feng added that the ETFs (exchange-traded funds) are the most heavily traded instruments in the traditional financial industry;
“Even in its first few hours, the DeFi Pulse Index is already shaping [up] to play that role.”
The DPI is the first of its kind for DeFi tokens but several similar products exist for regular crypto assets. One such index is Crypto20, or C20, which was launched in 2017 to track the top twenty crypto assets in a tokenized fund that is rebalanced on a weekly basis.
- Just In: Basel Committee Proposes Cap For Banks’ Bitcoin Holding
- Dogecoin (DOGE), Shiba Inu (SHIB) Show Strength, Here’s Why
- Breaking: Singapore Financial Regulator Reprimands Three Arrows Capital
- Ethereum Exchange Supply Spikes, ETH At A Risk of Correcting to $700 And Below
- Bitcoin Prices Can Reach This Level By End Of 2022; Reveals Deutsche Bank
- NFT Marketplace OpenSea Flags Data Breach, Here’s What Was Leaked
- EU Passes A Bill to Trace the Flow of Bitcoin & Crypto Assets In Regulatory Tightening Measures
- North Korea’s Lazarus Group Behind $100 Million Horizon Hack, Harmony Initiates Global Manhunt
- “People Mocking Saylor Will Regret”- Binance CEO
- Grayscale Initiates A Lawsuit Against the U.S. SEC Over Spot Bitcoin ETF Issues
- Polygon Price Analysis: V-top Reversal may Direct MATIC to $0.31 Support
- ETH Price Analysis: Is Ethereum Dropping To Three Digits?
- Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?
- NEAR Price Analysis: Falling Prices Eye $3 Breakdown; Should Coin Holders Worry?
- SHIB Price Analysis: Sustained Selling may Lead $SHIB to $0.0000074?
- Sandbox Price Analysis: Crashing SAND Prices Warns 25% Downfall
- Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26
- Chainlink Price Analysis: Wedge Pattern could Lead LINK price below to $5
- AAVE Price Analysis: Buyers Need $76.6 Breakout to Trigger Bullish Recovery
- Apecoin Price Analysis: Rising APE Price Knockout Another Barrier; is $6 Next?
