Binance Launches DEFI Composite Index Futures Contract with Chainlink Holding the Highest Weight

With various DeFi tokens experiencing rapid growth, it can be overwhelming for users. Will Binance take this step to attract buyers? On the evening of the 26th, Binance announced that starting at 3 pm on the 28th (Taiwan time), they will launch a 1-50x USDT contract trading called "DEFI Composite Index."

What is the DEFI Composite Index Contract?

According to the announcement, the current coin combination of the DEFI Composite Index includes: Band Protocol (BAND), Compound (COMP), Kava (KAVA), Kyber Network (KNC), Aave (LEND), Chainlink (LINK), Maker (MKR), Synthetic Network Token (SNX), Swipe (SXP), 0x (ZRX).

How are the weights of the DEFI Composite Index Contract calculated?

According to the announcement, Chainlink (LINK) has the highest weight in the composite index at 28.42%, followed by the surging Aave (LEND) at 11.25%, and the long-established protocol 0x (ZRX) which recently launched Matcha decentralized exchange is third with a weight of 9.86%.

The fourth position goes to Swipe (SXP), the cryptocurrency signature card service acquired by Binance, with a weight of 9.48%. However, this inclusion has sparked criticism from Larry Cermak, the Director of Research at The Block, who expressed, "Including Swipe in DeFi, what's that about? It looks like Binance acquired this company, and its coin as well. It's just a signature card provider and wallet. This is a typical shortcut."

He further predicted that when Binance launches smart contracts on the Binance Chain and introduces BNB, the next step will be to add BNB to the index.

It was previously reported that CoinMarketCap briefly placed BNB in the top spot in the DeFi category, and later Binance also introduced BNB mining on the lending platform Kava. Based on Swipe's standards, it would be natural to include BNB in this index. Perhaps there are other considerations for not including it.