Set Labs Inc. and DeFi Pulse have launched a new product. This is the DeFi Pulse Index which is based on the new V2 infrastructure of the Set Protocol and consists of ten of the most popular DeFi tokens available on Ethereum. This was reported to Cointelegraph in Spanish through a statement.
The DeFi Pulse Index can be purchased through TokenSets and through partners such as Argent, Zapper, Dharma and others.
Felix Feng, CEO of Set Labs Inc., said:
“There was no solution that made it easy, inexpensive, and open for users to purchase an un-derived DeFi index. This created stress for users when trying to make portfolio allocation decisions and it was difficult for them to determine which DeFi -Projects are worth high quality and well worth the investment. We believe the DeFi Pulse Index will solve that. “
According to the press release, the DeFi Pulse Index uses a method to determine which DeFi tokens are in it so that users can feel confident that they are investing in quality projects.
The methodology is detailed below:
The token must be listed on Ethereum.
All tokens must be bearer assets.
The tokens listed in the index cannot be “packaged” or synthetic tokens.
The tokens in the index cannot represent options or futures.
The tokens in the index cannot represent assets in the physical world.
The tokens in the index cannot represent claims of other tokens in blockchains other than Ethereum.
The dApp assigned to the token must be listed in DeFi Pulse
The dApp assigned to the token must have been started and functional for at least 180 days before the associated token can be included in the index.
The token must be in free circulation for at least 30 days before it is included in the index.
The delivery of the token should be reasonably foreseeable over the next five years.
The supply of tokens in circulation must be at least 5% of the expected supply of tokens in 5 years.
The dApp, the token, and the founding team should generally be considered legitimate.
The dApp and token follow best practices for protocol security, protection and post-incident management. Alternatively, a token can be qualified if the assigned dApp has been operational for a long time without a security incident.
The dApp connected to the token must be sufficiently decentralized through contracts between several companies and several members of the community or be completely controlled by the coordination of the token holders
The dApp linked to the token must be directly related to the decentralized financing (DeFi), e.g. B. Credit platform, stock exchange, platform for synthetic assets, forecast market, cross-chain service provider, asset management platform, options platform, platform futures or other relevant services.
The index uses a capitalization-weighted index in which the value weight is based on a market capitalization of DeFi projects. The tokens currently included in the index are:
Scott Lewis, Founder of DeFi Pulse, said:
“The DeFi Pulse Index is a novel blockchain financial product that lowers the barrier to entry for new users who do not have the expertise to be exposed to DeFi and enables experienced users to get exposure to DeFi through a single asset. The DeFi Pulse Index seeks to establish a standard that strengthens the reputable DeFi projects that make up our community. “
As also stated in the declaration, Rather than requiring users to manually purchase all of these DeFi tokens on different exchanges, the DeFi Pulse Index enables one-click exposure. This would significantly reduce the fees for the Ethereum (gas) networkBecause users only have to pay the fee once to buy and sell instead of spending the fee on 10 different stock market transactions.
Stani Kulechov, Founder and CEO of Aave stated:
“We are excited that the loan token will be part of the DeFi Pulse Index suite so that users can easily become familiar with key DeFi tokens. It will be exciting to see how this increases DeFi’s compositional ability, and how this does this used in CEXs. DeFi boards and more. Set and Aave have many synergies and we look forward to exploring them further in the future. “
A number of new smart contracts have been deployed to support the DeFi Pulse Index and have been reviewed by Open Zeppelin and ABDK. In the coming months, Set will introduce a number of new index products, agricultural performance products and an expanded trading execution on the platform as part of its Version 2.
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