Kriptoks

Decentralized Finance, or DeFi, has grown rapidly over the past few years, with many financial tools being built on Ethereum. To cater to this rapidly growing industry, the DEFI Index Pie was created. It is the most diversified DeFi index on the market, providing the broadest possible exposure to the industry while focusing on market leaders and innovators.

To achieve this, the index includes both large and small market cap projects, with a 70/30 weighted balance of their DLP and DSP indices. The objective of this index was to pool community knowledge to build an index containing the highest-quality projects at the top of their game, featuring the best projects in the ecosystem. A wide range of financial services are represented, including decentralized stablecoins (Maker), derivatives (Synthetix), price oracles (ChainLink) and layer two scaling solutions (LoopRing).

The beauty of DEFI++ is that DeFi users can easily gain access to a diverse spectrum of DeFi projects at the touch of a button and just one transaction. PieDAO has made DeFi simple.

The allocation weight of the index is determined by adjusted market cap, with larger assets receiving a greater percentage share. This design allows for maximum future growth without bottlenecks, as the lack of liquidity of smaller projects can limit the size a pie can grow to. Diversification is also key, as the backtesting shows that the more diversified an index, the better it performs. Wide diversification ensures minimal risk exposure, making DEFI++ the safest DeFi index in the market.

DEFI++ is a tokenized representation of a basket of relevant assets, with the underlying tokens safely stored in their treasury. The index is constructed using the PieVault technology, and there is no withdrawal fee. DOUGH holders are rewarded with a highly competitive 0.7% streaming fee for their governance of the system. DEFI++ staking contract is also provided where users can provide liquidity in return for a steady stream of DOUGH. Overall, the DEFI++ index performed relative to its underlying assets, and Ether seems to confirm Harry Markowitz’s theory.