DeFi Index

  1. DeFi Index
    1. Introduction
    2. Components
    3. Index Specification
    4. Construction Methodology
    5. Rebalancing
    6. Current Weights

Introduction

DEFI Index is composed of the top ten Defi tokens listed on Delta Exchange. Defi Index tracks market performance of a basket of Defi tokens. Index price is calculated using weighted average real time prices of component tokens on Delta Exchange. It is quoted in USDT.

Components

Chainlink (LINK) , Aave (AAVE), Yearn.finance protocol (YFI) , Uniswap protocol token (UNI) , Ren (REN), Kyber network token (KNC), Balancer token (BAL), Band protocol (BAND) , Synthetix network token (SNX ), Compound (COMP)

Index Specification

Term Value
Index Symbol DEFIUSDT
Index Name DeFi Index
Quote Currency USDT
Start Date  
Base Value 100
Universe DeFi Coins listed on Delta Exchange
Rebalacing Frequency Monthly

Construction Methodology

Defi Index is made of 10 components. These components are rebalanced at the end of every month. Weights of components depend on the market cap and 30 day volume of the respective components.

Weight of each token in the index is the average of capitalization and liquidity weight. Market cap weight is calculated as percentage share of the market cap of a taken compared to the market cap of index. Similarly, volume weight is also the percentage share of the volume of a taken compared to the total volume of all tokens in the index.

\[Weight = ( Capitalization\ Weight + Liquidity\ Weight)/2\] \[Capitalization\ Weight = (Market\ Cap\ of\ the\ token)/ (Sum\ of\ the\ market\ cap\ of\ all\ the\ tokens)\] \[Liquidity Weight = (30\ day\ volume\ of\ the\ token)/ (Sum\ of\ the\ 30\ day\ volume\ of\ all\ the\ tokens)\]

If the capitalization or liquidity weight is greater than 30%, the weight is limited to 30%. Therefore, none of the component tokens can get weight greater than 30%.

Rebalancing

Index is rebalanced at the end of every month. During rebalancing, new components can be added or existing components can be excluded according to the following criteria:

  1. If a new defi token listed on Delta exchange gets higher ranking based on the capitalization and liquidity, it will be added to the index. Top 10 tokens in the rankings will be part of the index.
  2. In special situation events like soft/hard fork, where token gets split, token may be excluded based on the capitalization and liquidity ranking.
  3. In case any component token ceases to trade on Delta Exchange, it will be excluded from the DEFI Index.

Current Weights

Coin Mkt Cap (M USD) Volume (M 30D) Cap Wt Liquidity Wt Adj Cap Wt Adj Liquidity Wt Index Wt
LINK 5135 46383 59% 50% 30% 30% 30.00%
AAVE 717 14184 8% 15% 14% 18% 16.01%
UNI 677 13616 8% 15% 13% 17% 15.26%
YFI 558 14401 6% 16% 11% 18% 14.59%
COMP 442 3547 5% 4% 9% 5% 6.58%
SNX 486 2551 6% 3% 10% 3% 6.37%
REN 301 1483 3% 2% 6% 2% 3.89%
BAND 126 2852 1% 3% 2% 4% 3.04%
KNC 185 1226 2% 1% 4% 2% 2.59%
BAL 85 1314 1% 1% 2% 2% 1.67%