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DeFi Pulse and Set join hands to create DeFiPulse Index

Photo of: Dennis Ramos
by Dennis Ramos

The most reliable Data company DeFi Pulse and Set protocol has joined hands to create a permissionless index containing the best DeFi tokens called the DeFiPulse Index. The data organization DeFi Pulse is already recognized as the provider of key and reliable information about projects that are doing great and the ones that have the potential in the near future. The assessment of projects will be done by understanding the total amount of crypto staked in each project which has been given the name – Total Value Locked (TVL).

Scott Lewis from the data company was quoted as saying:

“We want a way that people can get exposure to DeFi without having to go and buy every token individually because that costs a lot of gas.”

Now the users on Ethereum can lay their hands on the best-picked list of DeFi projects by buying a token called DPI available on Uniswap. There is no need for staking, rebasing, swapping, or any composing. It will now also be available on the token sets of the set protocol through Zapper, Argent, Dharma, and many more. When Scott Lewis was asked questions about the core value in the DeFi markets he said:

“Decentralized finance is an infrastructure to enable human coordination. Traditional finance is also the infrastructure to incentivize human coordination, and when humans work together it produces value,” Lewis said. “It’s still early. We still have to figure out if that’s an experiment that works.”

The DeFiPulse index currently will have 10 DeFi tokens: LEND, YFI, COMP, SNX, MKR, REN, KNC, LRC, BAL, and REP. The tokens are arranged in the order of their largest portions of the index. While LEND stands at 18.3%, REP is at 1.63%. Lewis explains that it is similar to a market cap- based index and draws parallels to how the S&P is weighted. 

The team has a comprehensive list of criteria for the tokens that have been included in the list. This includes forgoing synthetics, wrapped tokens, and tokens that exist in real-world assets. The tokens should be present in the market for some time and obviously they need to be listed on the DeFi pulse. 

CEO Felix Feng of the Set Protocol emphasized that the DeFi index will represent real assets which means the users could take the DPI token to Set and get it redeemed for the actual core assets. The initial token offering is looking at a target price of $100 each. It will be divisible to users who could buy-in at any amount they wish to. 

The DeFiPulse index is regarded as the first product that comes from Set Protocol v2.0. Later the organization will mark its debut on indices that will incorporate the more complicated features like the Derivatives of the DeFi space. Feng believes that DeFi Pulse as the apt partner for the project. He said:

“DeFi Pulse is one of the main destinations in DeFi. Given their understanding of all the different projects and their growth, they had really good domain knowledge.”