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July 2022 Rebalance DeFi Pulse Index

Christoph - Aug 1, 2022 | 2 minutes read

Scalara announces the results of the July 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. Over the last three months the DeFi Pulse Index returned -28% beating Ethereum’s -40%.

Coingecko data.

DeFi Pulse Index rebalance weights

Rebalance summary

The above index weight factors and weights were calculated using prices and circulating supplies of all 14 constituents as of July 24, 2022.

At the July 2022 index rebalance, no tokens are added while the smallest token FARM is removed, reducing the number of constituents to 13.

The total one-way turnover of the rebalancing is 5.2%. Starting with this rebalance the index is rebalanced on a quarterly basis, hence the turnover is higher compared to the previous rebalances that were run on a monthly basis. For most constituents of the DeFi Pulse Index, the index weight only changed marginally this quarter. UNI’s 39% allocation under market cap weighting once again would have breached the allocation limit of 25% for any single constituent without any capping. The Flexible Capping rule moved its weight half the way from the current weight to the 25% target to reduce turnover. FARM’s weight would have been below the 0.5% threshold and therefore the token was removed from the index following the Minimum Weight Requirement rule.

Scalara is dedicated to creating and maintaining indices for a decentralized world.

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