January 2022 Rebalance: DeFi Pulse Index

Christoph - Jan 29, 2022 | 1 minute read

Pulse.inc announces the results of the January 2022 rebalance of the DeFi Pulse Index.

The DeFi Pulse Index is a digital asset index designed to track the performance of some of the largest protocols in the Decentralized Finance (DeFi) space.

DeFi Pulse Index rebalance weights

Rebalance summary

The above index weightfactors and weights were calculated using prices and circulating supplies of all constituents as of 01-24-2022.

At the January 2022 index rebalance three tokens were removed from the index, reducing the number of constituents to 14.

For the first time the new Minimum Weight Requirement rule was applied that was added in index methodology v0.5.

For most constituents of the DeFi Pulse Index, the index weight only changed marginally. Without any capping UNI’s 35% allocation under market cap weighting once again would have breached the allocation limit of 25% for any single constituent. The recently introduced Flexible Capping moved its weight half the way to the 25% target.

Before the rebalance, INST (Instadapp), VSP (Vesper), and MTA (mStable) accounted for a total of 0.60% of the index weight. Therefore no meaningful impact on risk and return is expected. At the same time the tradability of the index is improved significantly. Index implementations (Index Coop’s DPI) will have less friction in the mint and redeem process and should trade closer to NAV.

Pulse.inc, a subsidiary of DeFi Pulse, is dedicated to creating and maintaining indices for a decentralized world.

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