Struggling to invest in DeFi? This fund might help you solve the problem

According to the latest announcement from Set Protocol, the platform has collaborated with the analytics platform DeFi Pulse to launch a new decentralized finance index product called DeFi Pulse Index (DPI). YFI accounts for 25.22% of the product, indicating that YFI's position in DeFi is comparable to TSMC in the Taiwan stock market.

DeFi Pulse Index

Set Protocol is a decentralized asset management protocol dedicated to providing Crypto Funds in the decentralized finance sector. According to the official announcement, the DeFi Pulse Index will select ten target DeFi tokens from a variety of DeFi tokens through DeFi Pulse data to form a DeFi fund, similar to Taiwan's 0050 or 0056 fund products.

Felix Feng, CEO of Set Labs, stated in the press release:

“There is currently no existing solution in the market that allows users to obtain a non-derivative DeFi index in a simple, inexpensive, and open way. Furthermore, when users are planning their investment portfolios, it is difficult for them to distinguish which DeFi projects are of high quality and worth investing in.”

On the other hand, it is also emphasized that the DeFi Pulse Index is not a derivative but a token compliant with the ERC20 standard. In other words, the DeFi Pulse Index can achieve strong composability in the DeFi ecosystem, such as being used as collateral on platforms like Aave or Compound, and can also be a liquidity asset supported by liquidity mining.

Constituent Tokens

The DeFi Pulse Index includes LEND, YFI, COMP, SNX, MKR, REN, KNC, LRC, BAL, and REPv2. With this product, users no longer need to buy each token individually from different exchanges; they only need to pay the Ethereum network fee once to invest in these ten tokens.

The official statement indicates that the DeFi tokens in the DeFi Pulse Index must meet strict criteria to ensure that users are investing in the highest quality products in the market. For example, the tokens in the index cannot be wrapped tokens or synthetic assets, and they cannot be cross-chain assets other than tokens on the Ethereum chain linked to real-world assets.

Tradeable on Partner Platforms

Users interested in investing in this product can purchase the index on TokenSets, a platform created based on Set Protocol that specializes in "decentralized financial products." All operations are executed on-chain, and all custodied assets are stored in smart contracts. In addition to TokenSets, the DeFi Pulse Index will also be available on partner platforms such as Argent, Zapper, and Dharma.