$DPI is up +160.0% year-to-date through the end of July

While the market remained within a narrow trading range, a recent rebound off the lows set in July has been heralded as a potential trend reversal.

As is typical in crypto markets, the rebound was partially attributed to a strong showing for Bitcoin (+18.7%). $DPI (+18.3%) managed to keep pace with the Bitcoin rebound, outperforming $ETH (+11.5%) during the month. $BTC is up +43.9%, and $ETH is up +244.1%.

Ecosystem Updates

• $DPI has been included in the new ($BED) from Index Coop. BED — which stands for Bitcoin, Ethereum, and DeFi — captures the upside of the three most investable crypto themes in a single ERC-20 token: digital gold, programmable money, and decentralized finance.

• Index Coop’s Michael Mtenga released, an article detailing how to make your $DPI productive. In the article, you can learn how to unlock yield for your passive DeFi exposure by providing liquidity, yield farming, lending collateral, or creating a collateral debt position.

• Looking to learn more about $DPI? Check out the new Definitive Guide to the DeFi Pulse Index.

Portfolio Analytics

$FARM (+327.9%), $SNX (+38.9%), and $AAVE (+32.2%) were performance leaders this month. $FARM notably did a 3x, contributing approximately +0.6% to the total return, which is pretty impressive given it is one of the smallest positions in the index.

Laggards this month included $LRC (-5.3%), $KNC (-3.0%), and $BAL (-2.3%).

* Contribution measures the degree of each individual token’s contribution to the performance of DPI over a period. This is an estimate. At this point in time, we are not able to account for the constant changes in the weight of the underlying tokens in the portfolio. As such, contribution is calculated based on the beginning portfolio weights post monthly rebalance, assuming they stay static during the month.

Constituent Highlights

$FARM: Harvest Finance had a series of exciting announcements during the month of July. V2 was officially launched on July 12th giving the Harvest Finance app a new UX/UI while enabling the creation of vaults across different chains. This was quickly followed by an integration with Polygon and a relaunch on Binance Smart Chain. Finally, $FARM was listed on Coinbase at the end of the month resulting in a +174% gain from July 29th through the end of the month.

$UNI: $UNI was a below average performer this month following some controversies with Uniswap Labs, a development studio that contributes to the Uniswap protocol. First, likely in response to growing regulatory pressure on tokenized stocks, Uniswap Labs restricted access to a handful of tokens on the app.uniswap.org front-end. It’s important to note that this is a restriction at the interface level and not at the smart contract level, meaning it is still possible to exchange these tokens using the Uniswap protocol with a different front-end than the Uniswap Labs website.

In another controversy, Uniswap Lab’s Ashleigh Schap seemed to imply that the organization is working with PayPal, E*Trade, and Stripe in an EthCC presentation that has been scrubbed from Youtube (but is available on IPFS). In the video, Ashleigh suggests DeFi will operate as a base layer for FinTech companies, with protocols like Uniswap providing a larger variety of assets, instant settlement, and 24/7 availability to the more UX-driven fintech offerings.

Rebalancing Summary

The July rebalance saw contributions to the $SNX and $UNI positions. In addition, $BADGER was initiated this month with a starting position of

Introducing $BADGER: The biggest change to the allocation for July is the introduction of a 0.43% position in $BADGER, the native governance token of Badger DAO. Badger DAO’s goal is to create an ecosystem of DeFi products built on top of Bitcoin. The $BADGER token allows community members to take part in governance and earn staking rewards. It has a maximum supply of 21 million tokens, like $BTC.

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