Digital asset management company Set Labs has launched a new decentralized finance index product in collaboration with analytics website DeFi Pulse.
The “DeFi Pulse Index” will allow users to invest in ten popular DeFi tokens available on Ethereum, including LEND, YFI, COMP and SNX. Instead of having to manually acquire these DeFi assets from different exchanges, users will only have to pay an Ethereum network fee once to buy and sell the index.
“There was no existing solution that allowed users to acquire a non-derivative DeFi Index in an easy, cheap and open way.” said Set Labs CEO Felix Feng in a press release. “This led to stress for users when they were trying to make portfolio allocation decisions and it was difficult for them to ascertain which DeFi projects are high quality and worthy of their investment.”
According to a press statement, the DeFi Pulse index uses a “rigorous methodology” to determine which DeFi tokens to include so “users can feel safe knowing that they’re investing in quality products.” For instance, the tokens held by the index can’t be wrapped or synthetic, they cannot represent physical world assets, and cannot represent claims to other tokens on blockchains other than Ethereum.
The index is available for purchase on TokenSets — Set’s own platform that lets users buy baskets of tokenized assets that automatically rebalance according to certain trading strategies. These so-called sets provide an easier way for users to gain exposure to top DeFi assets without needing to buy them all separately, similarly to how a user can buy traditional indexes like S&P to gain broader exposure to the stock market.
The new DeFi index will also be available on partnering platforms which include Argent, Zapper and Dharma.
“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”, said DeFi Pulse founder Scott Lewis.