DEFI++ developed by PieDAO is investable.
DEFI++ is an index that comes to create a token that allows to invest in DeFi as a sector or industry. In its first composition, this DeFi index contains the 13 most relevant and disruptive projects.
DEFI++ in turn is composed of 70% DEFI+L (which are the most capitalized DeFi companies) and 30% DEFI+S which is composed of medium and small projects.
These two tokens also use rebalancing to manage their composition, do not have a commission and also receive an additional return by distributing 20,000 DOUGH on a weekly basis.
You can invest in DEFI++ directly through the following portal even only with Ethereum (ETH) through two options, on the one hand issue the tokens (with the necessary assets to do so through UniSwap or other providers) or buy the token already issued from the market.
Celebrating this announcement, the PieDAO team has examined what the behavior of this token has been during the recent crashes in DeFi. The results are really impressive
Indices beat most strategies.
In traditional finance in general, indexes are found across the board. There is a reason for this. In general, indices tend to beat most investment strategies.
Indexes avoid overexposure to a single asset, so this diversification usually offsets the risks. But this is really only part of the explanation. When markets move in a synchronized fashion, price discrepancies provide continuous investment opportunities.
With these variations, the indices automatically rebalance to take profits from the assets that have performed better to invest in those that have not performed badly, which are therefore at a relative discount. Over time these micro movements accumulate profits, something that is especially relevant in markets with high volatility such as the crypto-currency market. It is important to note that indices beat strategies in both bear and bull markets.
Until now indices were a missing piece in the DeFi Ecosystem, especially compared to traditional finance.
PieDAO is an experienced community in this sector. Balancer Pools, on which PieDAO has relied to create DEFI++, is a protocol that allows investing in indices without the need for third party custody by anyone, anywhere in the world, in a non-permissioned way.
Other companies within this ecosystem have also started to work on offering a solution for this need, where we can highlight SET with its DeFi Pulse Index or Synthetix with sDEFI.
In this article we compare how DEFI++ (implemented with Balancer) has behaved with respect to the tokens themselves, or with the other index tokens that compete with it.
This article is the first in a series of articles that will be developed to analyze the advantages of index investing.
How would these strategies have performed historically?
In order to illustrate the advantages of index investing, we have simulated how these indexes (feet in PieDAO terminology) would have performed with recent historical market data.
The analysis bought the performance of the DEFI indexes over the last 30 days, first by examining the indexes and their component projects, and seeing how the different DEFI indexes have performed.
The results are clear. Before going into more detail, let’s examine PieDAO’s index offering.
The DAO community has developed a variety of indices, including tokens that provide secure exposure to tokenized Dollars and Bitcoins.
In this article we are going to focus specifically on the analysis of the DEFI indices, where the rebalancing provided by the Pools of the Balancer protocol is used and which can also be blocked in order to receive dao governance tokens which are the DOUGH.
All these Pools currently have zero commissions, an unprecedented feature in the financial world.
Represents a basket of DEFI’s least capitalized companies, thus offering significant future growth potential.
We can find the following tokens $BAL $LRC $UMA $MLN $REN $PNT
Represents a basket of DEFI leaders, which are the largest capitalization companies. These projects have already exploded and have demonstrated the significant value they have created for the ecosystem.
In this basket we can find $COMP, $AAVE, $UNI, $LINK, $MKR, $SNX, $YFI
The current leader, DEFI++ is our DEFI index. It is composed of 70% of the DEFI or DEFI+L leaders and 30% of the most powerful DEFI or DEFI+S companies.
DPI is the DEFI Set’s index and is comparable to DEFI++. It currently has a commission of 0.95%.
sDEFI is Synthetix’s DEFI index, which is comparable to DEFI++.