Are you confused and undecided on which DeFi tokens to invest in? Do you want to invest in a specific DeFi token but are afraid of a sudden 50 percent drop in price if not 100 percent? Say no more! DPI will save the day.
The company DeFi Pulse and Set Protocol have created a permissionless index called DeFiPulse Index (DPI) last September of this year so that you can have easy access to ten DeFi Tokens.
Ethereum users like us can just easily buy DPI on Uniswap so that we can have exposure to a curated set of tokens. Aside from Uniswap, you could also buy the DPI token through Dapps like Zapper, TokenSets, Dharma, and Argent.
“We want a way that people can get exposure to DeFi without having to go and buy every token individually, because that costs a lot of gas,” Scott Lewis of DeFi Pulse told CoinDesk in a phone call.
Here are the DeFi blue chips that are included on DPI: AAVE (also known as LEND), YFI, COMP, SNX, MKR, REN, KNC, LRC, BAL and REP. Buying DPI token instead of all of these tokens individually can save you gas fees.
The initial price of DPI token was around $100 each, but like other cryptocurrencies, it will be divisible so users can be able to buy in any amount in Uniswap. At the time of this writing, the price is 0.170272 ETH per DPI or $100.93.
Here is the correct contract address of DPI which you can also find on Coingecko: 0x1494ca1f11d487c2bbe4543e90080aeba4ba3c2b
The index will be rebalanced from time to time, though probably at the beginning more frequently than the quarterly rebalancing more typical indexes use. It will depend on market conditions, both Set and DeFi Pulse noted, with the goal of moving to quarterly shifts eventually.
A lot of CT (crypto tweeter) influencers will shill you to buy different shitcoins on Uniswap; tokens they have accumulated and will dump on you after you bought. But, if you're the kind of person who's just starting to learn DeFi, you would rather stick to a token/project with solid integrity and a team that works behind it.
This is not financial advice but for educational purposes only. Invest at your own risk and invest money you can afford to lose.
