Introducing the DeFi Pulse Index on TokenSets

This post was originally published on Set Protocol

The DeFi Pulse Index is now available for purchase on TokenSets!

Today, Set and DeFi Pulse are extremely excited to announce the launch of the DeFi Pulse Index Set on TokenSets! The DeFi Pulse Index (DPI) is built on Set Protocol’s new v2 infrastructure and consists of 10 of the most popular DeFi tokens available on Ethereum. The DeFi Pulse Index is available for purchase on TokenSets and through our integration partners Pillar, Zapper, Dharma and others.

Indexes are the first major product addition to the protocol as part of the Set v2 rollout. With the launch of Index Sets, we’ve added support for a range of new tokens with more assets such as additional stablecoins, liquidity provider (LP) tokens and synthetics coming soon.

Key Points

  • The DeFi Pulse Index consists of 10 DeFi tokens — LEND, YFI, COMP, SNX, MKR, REN, KNC, LRC, BAL and REPv2
  • The index is structured based on a version 0.1 of the methodology
  • The DeFi Pulse Index Set is backed by the DeFi Pulse team and built on Set’s new v2 architecture
  • You can purchase the DeFi Pulse Index from TokenSets here

Partnership Between DeFi Pulse and Set

A couple of months ago the Set and DeFi Pulse teams identified a clear pain point for users — there was no easy, cheap, and open way to acquire an index of the top DeFi tokens on Ethereum. This leads to stress for users when they are trying to make portfolio allocation decisions and it can be difficult for them to ascertain which DeFi projects are high quality and worthy of their investment.

To rectify this, we have worked closely together over the last couple of months to develop version 0.1 of the methodology to bring the DeFi Pulse Index Set to life. We believe that this index is the easiest way for people to get exposure to the top DeFi tokens on Ethereum.

Index Benefits, Composition and Methodology

The DeFi Pulse Index is the easiest and cheapest way to get exposure to the DeFi vertical as instead of users having to manually acquire all of these DeFi tokens from various exchanges, the index allows for 1-click exposure and rebalances monthly. Users also benefit from significantly reduced Ethereum network fees (gas) as they are only required to pay the fee once to buy the index on TokenSets or through other integrations and secondary markets. Conversely, the index can be sold on the same markets.

biswap

The DeFi Pulse Index Set is not a derivative and is a standard ERC20 token — essentially a wrapper around the 10 included tokens. Due to this, it allows for powerful composability within the wider DeFi ecosystem through hedging, use as collateral on platforms such as Aave or Compound, and can be used within yield farming as a staking asset.

The DeFi Pulse Index uses the version 0.1 of the methodology to determine which DeFi tokens are included so that users can feel safe knowing that they’re investing in quality projects. The index utilizes a capitalization weighted index where the value weight is based off of a DeFi projects market cap. The full methodology details are linked here.

View the Methodology

The price per token and circulating supply were taken on September 8, 2020 from CoinGecko. The price per token multiplied by the circulating supply determines the circulating market cap. Each position is weighted by its relative circulating market cap to other positions in the index.

The index is re-weighted on the first day of every month. Below is the structure of the DeFi Pulse index (as at 14th of September 2020 at 11:15AM PDT ).

How to buy the index

Purchasing and monitoring the DeFi Pulse Index is easy and you have multiple options:

Below, we’ll run through a short guide on how to purchase the DeFi Pulse Index (DPI). Click here to head to the DeFi Pulse Index page on TokenSets.

On this page, you can find all of the relevant information about the DPI Set including performance history, current composition and technical details like its associated Ethereum address.

Once you’re logged into your account, feel free to hit the Buy button which will bring up the buy window. From here, input the amount of the DPI you wish to purchase and select the currency you wish to purchase it with (TokenSets currently supports paying with DAI, USDC, USDT and ETH for the DPI Set).

Now you can click the Preview Buy button which will display the summary of your order. If you’re comfortable with the order, hit Submit Buy and then confirm the transaction on your Ethereum wallet.

Congratulations — you are now an owner of the DeFi Pulse Index Set! You can store this Set anywhere that you usually store your ERC20 tokens — be that in your favorite desktop or mobile wallet or in your TokenSets account.

Frequently Asked Questions

Where can I purchase the DeFi Pulse Index Set?

The index is available for purchase on TokenSets which uses Uniswap in the background to process the purchase for you.

How can I purchase a large amount of the DFP Set?

If you are buying quantities of DeFi Pulse Index Set greater than $50,000 USD please contact us at [email protected] or you can mint the Set directly here.

Where can I learn more?

Head to our intercom section for the DeFi Pulse Index here.

How can I integrate the DeFi Pulse Index into my project?

Feel free to reach out to [email protected] for all integration-related queries.

Have the new contracts been audited?

To support the DeFi Pulse Index Set, a new set of smart contracts has been deployed, which has been audited by Open Zeppelin and ABDK.

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Introducing the DeFi Pulse Index on TokenSets was originally published in Set Labs on Medium, where people are continuing the conversation by highlighting and responding to this story.

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