The underlying assets of the DEFI Composite Index are composed of a comprehensive price index made up of a series of decentralized finance (DeFi) tokens, calculated using a weighted average price with USDT as the settlement unit. This design allows the DEFI Composite Index to comprehensively reflect the overall performance of the DeFi market, providing investors with a simple and efficient market tracking tool. The main weighted tokens of the DEFI Composite Index include LINK, AAVE, UNI, ENA, CRV, etc., which are all important components in the DeFi sector, covering various tracks such as oracle services, lending protocols, decentralized exchanges, and stablecoins, ensuring the diversity and representativeness of the index.
Directly trading the DEFI Composite Index allows for more convenient position management without the need to manage a large number of positions simultaneously. For ordinary investors, directly investing in a single DeFi token may face higher risks, as the volatility of a single project may significantly impact the investment portfolio. The DEFI Composite Index mitigates the risk of volatility from a single project through diversified investment, while providing a broader market perspective. Investors can gain exposure to the entire DeFi market by trading the DEFI Composite Index without having to individually research and manage multiple token positions. This index-based investment approach not only simplifies the investment process but also reduces management costs and improves investment efficiency.
