All blogposts
A change in trend? — $DPI rebounds in July
A change in trend? — $DPI rebounds in July
$DPI is up +160.0% year-to-date through the end of JulyWhile the market remained within a narrow trading range, a recent rebound off the lows set in July has been heralded as a potential trend reversal.
8/13/2021
Index Coop
Content
$DPI is up +160.0% year-to-date through the end of July
While the market remained within a narrow trading range, a recent rebound off the lows set in July has been heralded as a potential trend reversal.
As is typical in crypto markets, the rebound was partially attributed to a strong showing for Bitcoin (+18.7%). $DPI (+18.3%) managed to keep pace with the Bitcoin rebound, outperforming $ETH (+11.5%) during the month. $BTC is up +43.9%, and $ETH is up +244.1%.
Ecosystem Updates
$DPI has been included in the new ($BED) from Index Coop. BED — which stands for Bitcoin, Ethereum, and DeFi — captures the upside of the three most investable crypto themes in a single ERC-20 token: digital gold, programmable money, and decentralized finance.
Index Coop’s Michael Mtenga released, an article detailing how to make your $DPI productive. In the article, you can learn how to unlock yield for your passive DeFi exposure by providing liquidity, yield farming, lending collateral, or creating a collateral debt position.
Looking to learn more about $DPI? Check out the new Definitive Guide to the DeFi Pulse Index.
Portfolio Analytics
$FARM (+327.9%), $SNX (+38.9%), and $AAVE (+32.2%) were performance leaders this month. $FARM notably did a 3x, contributing approximately +0.6% to the total return, which is pretty impressive given it is one of the smallest positions in the index.
Laggards this month included $LRC (-5.3%), $KNC (-3.0%), and $BAL (-2.3%).
* Contribution measures the degree of each individual token’s contribution to the performance of DPI over a period. This is an estimate. At this point in time, we are not able to account for the constant changes in the weight of the underlying tokens in the portfolio. As such, contribution is calculated based on the beginning portfolio weights post monthly rebalance, assuming they stay static during the month.
Constituent Highlights
$FARM: Harvest Finance had a series of exciting announcements during the month of July. V2 was officially launched on July 12th giving the Harvest Finance app a new UX/UI while enabling the creation of vaults across different chains. This was quickly followed by an integration with Polygon and a relaunch on Binance Smart Chain. Finally, $FARM was listed on Coinbase at the end of the month resulting in a +174% gain from July 29th through the end of the month.
$UNI: $UNI was a below average performer this month following some controversies with Uniswap Labs, a development studio that contributes to the Uniswap protocol. First, likely in response to growing regulatory pressure on tokenized stocks, Uniswap Labs restricted access to a handful of tokens on the app.uniswap.org front-end. It’s important to note that this is a restriction at the interface level and not at the smart contract level, meaning it is still possible to exchange these tokens using the Uniswap protocol with a different front-end than the Uniswap Labs website.
In another controversy, Uniswap Lab’s Ashleigh Schap seemed to imply that the organization is working with PayPal, E*Trade, and Stripe in an EthCC presentation that has been scrubbed from Youtube (but is available on IPFS). In the video, Ashleigh suggests DeFi will operate as a base layer for FinTech companies, with protocols like Uniswap providing a larger variety of assets, instant settlement, and 24/7 availability to the more UX-driven fintech offerings.
Rebalancing Summary
The July rebalance saw contributions to the $SNX and $UNI positions. In addition, $BADGER was initiated this month with a starting position of
Introducing $BADGER: The biggest change to the allocation for July is the introduction of a 0.43% position in $BADGER, the native governance token of Badger DAO. Badger DAO’s goal is to create an ecosystem of DeFi products built on top of Bitcoin. The $BADGER token allows community members to take part in governance and earn staking rewards. It has a maximum supply of 21 million tokens, like $BTC.
For more information on DPI or the Index Coop community, join our Discord and drop your question in the #help channel
Dive deeper
Watch, read, and learn everything you need to master our leverage tokens.
Subscribe to our newsletter
Join over 6,000 subscribers in receiving weekly updates about our products, DeFi, and the onchain structured products space.
FAQs
Index Coop yield tokens simplify earning yield in DeFi by automating complex strategies and diversifying across protocols. They are user-friendly and cost-efficient, appealing to both new and seasoned DeFi users.
Leverage tokens automate a leveraged position by utilizing onchain money markets like Aave or Morpho to borrow funds, amplifying a user's exposure to an asset without requiring manual management. The token's smart contracts autonomously handle the borrowing, lending, and rebalancing of assets, maintaining a consistent leverage ratio despite market fluctuations. This automation eliminates the complexities of collateral management and liquidation risks, while also charging low, transparent fees that avoid expensive funding rates often charged by perps.
Index Coop is a decentralized autonomous organization (DAO) that specializes in creating and maintaining onchain structured products. Index Coop aims to democratize access to the crypto market, empowering everyone to participate in the growing digital asset ecosystem with ease.
No, yield automatically compounds and accrues to the token price. The value of the tokens you hold in your wallet will simply go up over time without the need to claim or compound rewards.
Index Coop products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
INDEX is the ERC-20 governance token on Ethereum for Index Coop. INDEX empowers its holders to participate in decision-making processes that shape the future of Index Coop.
Yes, all Index Coop products are instantly redeemable for their underlying value at all times.
Yes, all Index Coop smart contracts have been audited by leading independent security firms such as OpenZeppelin, ABDK, Isosiro, & more. There is also an active bug bounty program through ImmuneFi. Audit information is published in the docs here.
Streaming fees (an annual fee paid continuously block-by-block), mint and redeem fees (only on leverage tokens), and borrow costs (interest paid to borrow funds from onchain markets when using leverage).