The DeFi Pulse Index (DPI) is a capitalization-weighted index that tracks the performance of some of the largest protocols in the decentralized finance (DeFi) space. The index is weighted based on the value of each token’s circulating supply. The DeFi Pulse Index aims to track projects in DeFi that have significant usage and show a commitment to ongoing maintenance and development.
Recently, DPI was rebalanced in accordance with its methodology to include Lido DAO (LDO) and Rocket Pool (RPL). SUSHI was removed due to the project’s decreased usage: Both from a total value locked (TVL) and trading volume perspective, it has been losing market share to other decentralized exchanges.
Here’s a closer look at the two new tokens included in DPI:
Lido DAO (LDO) is the governance token of the Lido platform, a decentralized and trustless liquid staking solution for Ethereum 2.0 (Eth2). The Lido platform allows users to stake their Ethereum (ETH) tokens in the Eth2 Proof-of-Stake (PoS) network while still maintaining liquidity through the issuance of a token called stakedETH (stETH).
The Lido DAO is a Decentralized Autonomous Organization (DAO) responsible for governing the Lido protocol. LDO token holders can participate in the governance process, which includes proposing and voting on various protocol upgrades, parameter changes, and other decisions that can affect the future development and operation of the platform.
Holders of LDO tokens can participate in governance decisions by staking their tokens to submit proposals or vote on existing proposals. By involving the community in the decision-making process, Lido aims to achieve a higher level of decentralization and security for its users. The LDO token can also be traded on various cryptocurrency exchanges, providing a market for the token and allowing holders to access its value.
Rocket Pool (RPL) is the native utility token of the Rocket Pool platform, a decentralized Ethereum staking service that enables users to stake their Ether (ETH) in the Ethereum 2.0 (Eth2) Proof-of-Stake (PoS) network. Rocket Pool is designed to be a more inclusive and accessible staking solution compared to traditional solo staking, which requires a minimum of 32 ETH to become a validator.
The Rocket Pool platform allows users to stake any amount of ETH, effectively pooling together smaller amounts of Ether from multiple users to create validator nodes in the Eth2 network. This way, even users with less than 32 ETH can participate in staking and earn rewards.
By combining a user-friendly staking solution with a decentralized governance system, Rocket Pool aims to increase participation in the Eth2 PoS network and improve the overall security and decentralization of the Ethereum ecosystem.
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