DeFi Basket Token (DFI)

Background

As with traditional finance, savvy investors often prefer to invest in indices or “baskets” such that their risk to any individual asset is mitigated by the basket’s other constituents. Many retirement plans use a blend of indices based on an individual’s age-adjusted risk tolerance, changing the composition as time elapses and the investor nears retirement. Exchange-traded products (ETPs) – like 21Shares’s Bitcoin ETP – mirror the performance of one or more underlying assets. Index funds tend to outperform individual investment vehicles on a risk-adjusted basis over the long term (footnote).

Amun’s DeFi Index Token (DFI) gives investors a way to gain exposure to the top DeFi tokens by market cap using a liquidity pool built atop decentralised governance. Providing liquidity gives the user exposure to each of the basket’s constituents in addition to extra yield from the pool’s tokens.

Inclusion Criteria

DFI includes the top eight Ethereum-based DeFi tokens by market cap. In order to be eligible for the index, this index will only contain tokens native to protocols offering one of the following services in a decentralized manner.

  • Lending and Borrowing

  • Decentralized Exchanges

  • Synthetic Assets

  • Prediction Markets

  • Insurance

  • On-chain pricefeeds (oracles)

  • Yield Farming

Fees

All tokens incur a management fee of 1% annually, which is waived for all token holders through the end of 2021.