Set Protocol and DeFi Pulse have partnered to launch one of the first non-derivative DeFi indexes called the DeFi Pulse Index (DPI).
1/ Today, Set Protocol and @defipulse are extremely excited to announce the launch of the DeFi Pulse Index Set (DPI) on @tokensets!
The DPI is built on Set’s new v2 infrastructure & consists of 10 DeFi tokens available on Ethereum.
Learn more: https://t.co/RbjC9uFIS1 pic.twitter.com/M62jD3hA98
— Set ⚖️ (@SetProtocol) September 14, 2020
The DeFi Pulse Index includes 10 ERC-20 tokens listed on DeFipulse.com and is purchasable on Tokensets, Uniswap, or through integration partners like Argent, Zapper, and Dharma.
As DeFi continues to grow at a rapid pace, products like the DPI will be pivotal to lowering the barrier of entry for retail consumers. Giving users a one-click entry to DeFi exposure not only attracts a new sector of participants but also significantly reduces gas fees. Instead of having to purchase tokens like LEND, SNX, and YFI in 3 separate transactions, traders can buy and sell the DPI to save on gas and trading fees. The DPI also serves as an industry standard and helps newcomers identify the projects that have been consistently delivering value and vetted by the DeFiPulse team.
DPI Makeup
The index will include 10 DeFi tokens: LEND, YFI, COMP, SNX, MKR, REN, KNC, LRC, BAL and REP. YFI will make up the highest allocation of the index with 25.2% and REP the lowest with 1.43%. This DeFi Pulse Index is the first product coming out of TokenSetV2. Over the coming months, Set Labs will introduce other index products, yield farming products, and other trade execution offerings through their platform.
Since users will actually own the tokens that comprise the capitalization-weighted index, the DPI could also be used for yield farming similarly to Uniswap LP tokens. The Set will rebalance on the first of each month, meaning the weights in this basket are subject to change. DeFi Pulse will take a 0.95% streaming fee which focuses on that aggregate market cap of the Set for profits.
Set Labs CEO, Felix Feng mentioned that “this is going to be a pretty key asset in the entire industry.” adding that “we anticipate that this asset will be used for yield farming.”
The easiest way to acquire the DPI Set is on Uniswap or through mobile wallets like Argent. In addition, larger traders and institutions can mint DPI tokens directly through Set Protocol.
For more information of the DeFiPulse Index check out the original article here.
To stay up with DeFi Pulse, follow them on Twitter. To stay up with Set Protocol, follow them here.
Business Development and Operations at TrustToken – TUSD. Jack is a startup generalist and DeFi enthusiast. Stay connected with him by following @HHJackSun on Twitter.