The DeFi Pulse Index is a market capitalization-weighted index that tracks the performance of a basket of DeFi assets. Its weightage is based on the value of each token’s market capitalization, with the inclusion or exclusion of tokens defined by several stringent criteria.
The index seeks to lower the barrier of entry for individuals who lack the expertise to navigate the DeFi space while providing experienced users exposure to multiple DeFi assets through the ownership of a single index token.
Buying into the DeFi Pulse Index returns the DeFiPulse Index (DPI) token, which grants ownership, exposure, and the ability to redeem the Index’s underlying tokens. The DeFi Pulse index comprises of 10 assets, listed here in descending order based on their relative share: AAVE, Synthetix, Uniswap, Yearn Finance, Compound, Maker, REN, Loopring, Kyber Network and Balancer. As of December 2020, the Index had a market capitalization of $22 million.