January Rebalance & Weights DeFi Pulse Index

Objective of the DeFi Pulse Index (DPI):

The DeFi Pulse Index is a digital asset index designed to track tokens’ performance within the Decentralized Finance industry. The index is weighted based on the value of each token’s circulating supply.

DPI Rebalance Weights:

Rebalance Summary:

In the month of January we have seen the continued growth and adoption of DeFi Pulse Index. AAVE, UNI, MKR, SNX, and LRC have led the pack with gains greater than 200% since December’s rebalance. While KNC has been the worst performer with a measly 165% in price increase. Moreover, DPI has grown its total holders to over 8000 unique holders! (great dune board here DPI Exposure (over time)).

As you can see in the new weights above this rebalance includes the first addition to the DeFi Pulse Index. mStable (token ticker MTA) has met all the criteria to be added based on the Pulse.inc methodology. This is the first addition of what Pulse.inc hopes to be many more in the upcoming rebalances of the DeFi Pulse Index. It is important to note the limiting factor for more additions is time. As part of the Pulse.inc methodology each project or protocol’s token must be in existence for over 180 days. This was to ensure adequate time for projects created during the DeFi Summer and Fall to have meaningful product usage and price discovery. Heading into February, March, and April expect the addition of some of your favorite protocols and projects as the DeFi Pulse Index continues to grow.

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This seems like a big deal – i’d be curious to hear how you and your team are talking about that addition so that the Coop can amplify a similar message

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Great question Greg. The addition of mStable is the continued evolution of DPI. It represents the ongoing expansion of the DeFi Pulse Index and increased coverage of the DeFi ecosystem as a whole. This expansion will continue rapidly over the upcoming months. For example by March there could be as many as 18 projects within the DPI index! Happy to coordinate via discord. There are some great content ideas that the coop can coordinate with us and mStable on. Should be seeing some info in Discord :slight_smile:

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Wow, quite the UNI weight increase.


Well, with MTA being added, I’d think CRV might be qualified. They have the same governance locking mechanism. Thought that was the reason why CRV couldn’t be added.

And the Curve protocol has been around for more than 1 year.

Well $UNI was added on Oct 1.

Did I miss the vote to include MTA, or am I just misunderstanding that the INDEX token would have control over that decision?

Where does discussion on this phase occur?

Determination Phase

The determination phase takes place during the third week of the month. It is the phase when the changes needed for the next reconstitution are determined.

  • Circulating Supply Determination: The DeFi Pulse Index currently references CoinGecko’s circulating supply number. The Circulating Supply is determined during the third week of the month and published before the monthly reconstitution.

  • Additions and deletions: The tokens being added and deleted from the index calculation are determined during the third week of the month and published before monthly reconstitution.

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Hey this is true. I should have clarified that this is the first addition under the V2 methodology. It is also the start of the first addition of many of the projects that launched in the summer. :slight_smile:

DeFi Pulse is the methodologist. We do the research, create methods to add/remove projects, and market the product DPI in collaboration with index coop.

We supply the weights each month as well as additions or subtraction. Index coop members and holders are custodians and the executers of the changes/additions of the DeFi Pulse Index.
The goal of the index coop is to move towards allowing signaling by index coop members/holders. Your questions and statements have been great feedback as well. We are working towards better communication going forward. We want to start by sharing potential upcoming additions to the DeFi Pulse Index. Expect more info on this in the coming week.

If. you have more questions, I am happy to chat :slight_smile:

Thank you for the clarification! This is likely a shared misconception for new INDEXers.

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So hopefully you post these a bit earlier next time?

So the big question to Coingecko is regarding the Uniswap Timelock which is the governance treasury.

Recently a bit more UNI got vested into it. Currently includes 19% of the circulating supply. This contract could possibly be excluded from the circulating supply. Not completely sure of Coingecko’s rules.

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Sorry if I’m just being dumb here, but I don’t understand why INDEX holders didn’t vote for the rebalance changes, considering that one of the described token characteristic is:

  • Ratifying rebalance trades for Index Coop products

hey @shaftlocke, I think this refers more to ratifying that the trades are valid than voting on which tokens to include. Token additions/removal are done by DeFi Pulse. INDEX token holders are not involved in this process.

The language is confusing though, so we need to fix it.

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