- Set Protocol partners with DeFi Pulse to introduce the DeFi Pulse Index (DFP).
- The index is the first development feature since the Set Protocol V2 rollout.
- DFP Index will start by pricing the top 10 carefully vetted DeFi tokens.
Set Protocol partners with DeFi Pulse, a decentralized finance data aggregator, to launch the DeFi Pulse Index (DFP), consisting of the top tokens in the DeFi space. The DFP index is available for purchase on Set Protocol’s TokenSets, and associated partner exchanges, including Uniswap, Dharma, Pillar, Zapper, among others.
The DPI is built on Set’s new v2 infrastructure & consists of 10 DeFi tokens available on Ethereum.
— Set ⚖️ (@SetProtocol) September 14, 2020
A blog post published on Tuesday, September 15, the DFP Index follows a “rigorous methodology to determine which DeFi tokens are included” in a bid to increase the safety of investors in the precarious market. Experts on the DeFi Pulse team are eft the responsibility of selecting the various tokens and their weighting on the Index.
At launch, the DFP Index will consist of Aave (LEND), Yearn Finance (YFI), Compound (COMP), Synthetix (SNX), Maker (MKR), RenVM (REN), Kyber Network (KNC), Loopring (LRC), Balancer (BAL) and Augur’s REPv2.
The Index aims to make it simpler and cheaper for DeFi investors to buy a basket of tokens without manually buying each token –saving on gas fees. This opportunity saves the users the pain and stress of creating portfolios centered around DeFi products, Set Labs CEO, Felix Feng said.
“This led to stress for users when they were trying to make portfolio allocation decisions, and it was difficult for them to ascertain which DeFi projects are high quality and worthy of their investment.”
The DFP Index is not a derivative of the ten available tokens but a wrapper around them. The wrapper means that users can directly exchange their DFP tokens for each of the tokens represented on the Index on TokenSets and get equal value. The tokens will rebalance automatically every month.
Notwithstanding, several rules are set in place on how the tokens are listed. First, every token must be available on Ethereum except wrapped or synthetic tokens. Options and futures are also not listed on the DeFi Pulse Index, and tokens must be functional or operational for at least 180 days before they are included on the index.
Feng further states the coin will be available to be staked on DeFi pools and could even be used for yield farming. He stated,
“I think one of the things that are really exciting about the DeFiPulse Index is we think it’s going to be a pretty key asset in the entire industry. We anticipate that this asset will be used for yield farming.”