$DPI combines the features of an ERC-20 token and a traditional structured product to create a 21st-century digital upgrade to traditional structured products. This article is designed to answer questions about the methodology applied to this index including:
The DeFi Pulse Index ($DPI) is a capitalization-weighted index that tracks the performance of decentralized financial (DeFi) assets across Ethereum to provide a simple, accessible and cost-efficient, productive class of crypto assets. Keep reading to discover more about the DPI methodology
The token inclusion criteria considers a wide range of characteristics across four primary categories: descriptive characteristics, supply characteristics, traction characteristics, and user safety characteristics.
The DeFi Pulse Index methodology weights tokens in the index according to their market cap based on circulating supply. Index constituents are capped at a 25% max allocation to avoid over-concentration. Any excess weight above 25% that would have been allocated to the token is redistributed to the remaining components of the DeFi Pulse Index on a weighted basis.
$DPI is maintained in two phases: a determination phase where tokens are added/deleted, circulating supply is assessed, and weightings are outlined based on the above methodology, and a reconstitution phase where the index composition changes from the determination phase are implemented. The determination phase typically occurs during the third week of the month, and reconstitution is enacted on the first working day of the following month.
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
You shall not purchase or otherwise acquire any of our token products if you are: a citizen, resident (tax or otherwise), green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (a “U.S. Person”), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized (together with U.S. Person, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized). You shall not resell or otherwise transfer any of our token products to any Restricted Person. The transfer or resale of any of our token products to any Restricted Person is not permitted. Click here to view the list of Tokens Restricted for Restricted Persons. You shall read the Terms of Service and use our Website in compliance with the Terms of Service.