Analytics website DeFi Pulse has released a new decentralized finance (DeFi) index product in collaboration with digital asset management company Set Labs, the firm said in a blog post on 14 September.
According to the announcement, the new “DeFi Pulse Index” will provide users with easy access to ten of the most popular DeFi tokens available on Ethereum, including LEND, YFI, COMP, SNX, MKR, REN, KNC, LRC, BAL and REP. Through this index, users will no longer have to go through different exchanges in order to acquire these assets, but only pay the Ethereum network fee to be able to buy and sell the index.
The CEO of Set Labs, Felix Feng, said in a statement:
“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.”
The new index will be available on Set Labs’ own platform TokenSet, as well as on Uniswap, Zapper, Argent, Dharma, and others. Through it, users will be able to gain exposure to DeFi assets without the need to buy them separately, which is similar to how investors buy traditional indexes like S&P in order to gain a broader exposure to the stock market.
The founder of DeFi Pulse, Scott Lewis said in a statement:
“The DeFi Pulse Index is a novel blockchain financial product that lowers the barrier to entry for new users who lack the expertise to gain exposure to DeFi, and provides experienced users with exposure to DeFi through one single asset.”
The DeFi Pulse blog post also revealed that the index uses a “rigorous” methodology to determine which tokens to include, a strategy meant to make users “feel safe knowing that they’re investing in quality products”. According to the firm’s statement, the index cannot hold tokens that are wrapped or synthetic, cannot represent physical world assets, cannot represent claims to other tokens on different blockchains than Ethereum.