How to get more from your DeFi Pulse Index $DPI

#1/8 Broad Exposure to DeFi - $DPI is used to give users diversified exposure to the top #DeFi blue chips.
14 top DeFi protocols in ONE token.

Article credit:@Mringz @davidesilverman


Liquidity Providing (LPing) - LPing for $DPI / $ETH on a DEX like @Uniswap, @loopringorg or @SushiSwap enables DPI holders to earn a portion of the trading fees.

$SUSHI - Onsen program = extra rewards in SUSHI

$UNI - Largest pool for DPI

$LRC - ZK roll-up = less gas fees Image

Liquidity Mining - In addition to the trading fees earned by providing liquidity to DEX pools, LPers can earn additional rewards by staking their $DPI / $ETH LP tokens via the @indexcoop website to receive rewards in $INDEX tokens.

Index Coop - Est. target APY: 12% (INDEX) Image

Yield Farming - $DPI LPers can stake their LP tokens into yield aggregators like @harvest_finance to earn extra rewards. Yield aggregators harvest reward tokens, $INDEX, plus reward stakers in their native token, $FARM.

Harvest Finance - APY: 1.0% (FARM), 7.0% (INDEX) Image

Leveraged yield farming - Protocols like Alpha Homora V2 and Impermax allow users to deposit $DPI or the $DPI / $ETH LP token to earn leveraged liquidity rewards. Rewards are auto-compounded to generate additional yield.

APYs - 70% - 200%
@ImpermaxFinance Image

Lending and Borrowing Protocols - Users can also lend their $DPI tokens on lending and borrowing protocols, like $CREAM and $ALPHA, to earn yield from borrowing demand on the protocol.

APY: 3%

APY: 5% DeFi Pulse Index $DPI

Collateral Debt Positions (CDP) - Borrowing stable coins against $DPI frees up liquidity w/o having to sell the asset. Beneficial as the stable coins borrowed can be used for various cases inside and outside #crypto.

@unitprotocol $COL
LTV: 64%

@SushiSwap $SUSHI
LTV: 75% Image
RISKS - This is not financial advice. Purely for informational/educational purposes. Do your own research #DYOR.

Some examples of risks (but not all) - Smart-contract risk, liquidation risk, financial risk, multi-sig risk, impermanent loss, interest rate risk, market risk. Image

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More from @Crypto_Texan

24 May
#DeFi was battle-tested in last week's dip, that would have sent TradFi into turmoil.

DeFi Pulse Index $DPI gives broad market-cap weighted exposure to blue-chip protocols in the DeFi space.

14 DeFi tokens wrapped into ONE!

Current $DPI allocations 👇 1/16

Video: @earth_maze
$AAVE - #Aave - 21.09%
@AaveAave is a decentralized money market protocol where users lend and borrow crypto using crypto as collateral. Lenders earn interest by providing liquidity, borrowers borrow by collateralizing their crypto to take out loans from the liquidity pools. Image
$UNI - #Uniswap - 20.38%
@Uniswap is a DEX that allows users to swap ERC-20 tokens on #Ethereum with no centralized intermediary. Traders are not exposed to the security risks of a centralized exchange. V3 allows for "concentrated liquidity" which limits impermanent loss. Image
Read 16 tweets
11 May
14 DeFi Tokens all wrapped into ONE
- The S&P 500 of DeFi
- Strict/transparent token inclusion criteria
- Redeem underlying tokens any time
- Market-cap weighted index
- Auto-rebalancing monthly
- Eliminate costly transactions
- Diversified #DeFi Portfolio

DeFi Pulse Index $DPI
Each $DPI token contains (as of 5/11):

$UNI - 23.1%

$AAVE - 17.4%

$MKR - 14.4%

$COMP - 13.0%

$SNX - 8.0%

$YFI - 7.7%

$SUSHI - 6.8%

$REN - 2.5%

$BAL - 2.2%

$KNC- 2.1%

$LRC - 2.0%

$FARM - 0.3%

$CREAM - 0.3%

$MTA - 0.2%
The $DPI is a crypto-native digital asset index for #DeFi. The index is weighted based on the circulating supply. #DPI tracks projects with significant usage, maintenance and development.

@sassal0x explains on @BanklessHQ podcast
Read 7 tweets

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