DeFi Pulse Index is a decentralized financial product that tracks the performance of DeFi tokens. This protocol reduces barriers to entry for novice users, and allows experienced users to access DeFi via a single asset.
The DeFi Pulse Index chooses its tokens according to a DeFi project’s market cap and re-weights its index on the first day of every month. Blue-chip DeFi governance tokens are included in the index, which covers major decentralized exchanges and lending protocols.
Continue reading to find out everything about DeFi Pulse Index and how you can buy DeFi Pulse Index from CoinStats.
Let’s get started!
What is the DeFi Index?
The cryptocurrency market is extremely complex. Traders must be familiar with specific cryptocurrencies as well as the trends in crypto markets.
DeFi indexes were created to provide passive, diversified exposure to the markets.
What is the DeFi Pulse Index?
DeFi Pulse Index was (DPI) the first DeFi-market index to be non-derivative or non-synthetic. An ERC-20 token, DPI allows you to access a variety of DeFi protocols with one transaction. The DeFi Pulse Index began with 10 of the most popular Ethereum-based DeFi tokens and is weighted depending on each token’s capitalization.
These are the factors that DeFi Pulse Index uses to evaluate tokens before allowing them into the index.
- Tokens need to be linked to DeFi Protocols or DApps on DeFi Pulse.
- Tokens can’t be wrapped or made synthetically.
- Before a protocol or product can be considered for inclusion in an index, it must have been released at least 180 calendar days ago.
- Tokens are considered to be bearer instruments.
- The tokens cannot be used to represent tangible options or assets in the real world.
- The Ethereum blockchain must list tokens.
- Over the next five years, the token’s overall supply must be reasonably predictable.
- At least 7.5% of the token’s five-year supply must be currently circulating.
- Tokens cannot be used to claim other tokens that are not on the Ethereum blockchain.
As of April 20,22, Rebalance:
Maker (MKR), Compound (COMP), Synthetix (SNX), Yearn Finance (YFI), Aave (AAVE), Kyber Network Crystal (KNC), REN (REN), Loopring (LRC), Balancer (BAL), Uniswap (UNI), Sushi (SUSHI), Farm (FARM), Badger DAO (BADGER), Tribe (TRIBE).
DeFi Pulse Index – Where Can You Buy (DPI).
You can purchase the DeFi Pulse Index on Crypto.com and eToro, but also decentralized markets like Uniswap.
It’s also compatible with Pillar, Zapper, and Dharma, among other DeFi systems and protocols.
DeFi Pulse Index has joined forces with the Set Protocol, which enables the creation, maintenance, and trading of “Sets,” baskets of ERC-20 tokens representing a portfolio of underlying assets.
CoinStats – How to buy DeFi Pulse Index
Decentralized exchanges can be used to acquire cryptocurrencies such as DeFi Pulse Index. To buy DeFi Pulse Index, you must first buy Ethereum (ETH) and then use ETH to buy DeFi Pulse Index (DPI).
You can use credit/debit card or bank transfer to buy Ethereum at popular crypto exchanges, such as Coinbase and Binance.
Let’s learn how to buy DeFi Pulse Index on CoinStats:
Step 1: Connect your wallet
To access the coinstats.app, search the DeFi Pulse Index(DPI) price in the search box. Scroll down to the “swap” features and connect the wallet where you store the ETH token.
By clicking on the “Connect” button, you’ll see the various wallet options supported by CoinStats. Connect your wallet by searching for it.
It can be connected by scanning the QR code via WalletConnect, or manually entering the Blockchain/Crypto address and Wallet address into your mobile or web application.
Step 2: Pick a Token
After linking your wallet successfully, you can select which token to trade by entering details in either USD/EUR or cryptocurrencies.
You can, for example, swap Ethereum for DPI and buy DeFi Pulse Index DPI with ETH.
In the “From” field, select the ETH token from your wallet, and in the “To” field, select “DPI.”
Step 3: Click on Swap
To adjust slippage or gas settings, click on Advanced Options. Once done with customizing, scroll down to the bottom of your screen and click on the “Submit Swap” button.
After submitting the swap request, you’ll be asked to confirm the swap. Review the details displayed on your web or mobile app screen, and click the “Confirm” button to initiate the swap.
The transaction has been processed. You can choose different gas settings to affect how fast your transaction goes through. You can trace your transaction from the loader at the bottom right corner or the wallet’s home page.
NOTE: You’ll be charged Network Transaction fees, also known as gas fees. It is the cost to make a blockchain transaction. Gas fees can be described as being paid in the local currency of the network. For example, Ethereum is used for Ethereum transactions. CoinStats charges an additional swap fee.
Optional: Step 4: Buy a wallet
Next, you will need to choose a wallet that can store your crypto coins securely after you have completed your Metaverse Index Purchase. While your coins may be stored in your broker exchange wallet, we recommend that you create a private wallet using your unique set of keys. There are two options available depending on how secure you want to invest.
Also known as cold storage or hardware wallet, a wallet is any physical device which stores private keys that are required for receiving and sending cryptocurrency. A hardware wallet is often considered the most secure way to keep your cryptocurrency safe because they allow offline storage. This reduces hacker risk. Hardware wallets are password protected and can erase any data after repeated failed attempts. This prevents physical theft. The hardware wallets allow you to sign and confirm transactions on blockchain, providing an added layer of protection from cyber-threats.
Users of any skill level can use Ledger wallets to store their assets. Ledger NanoX is ideal for crypto traders who are experienced and have the ability to store multiple assets, such as DPI tokens.
The software wallet is more user-friendly and allows you to connect with multiple Decentralized Finance (DeFi), applications, instantly. Because software wallets are stored online, they can be subject to security breach. You should do your due diligence to ensure security. We recommend that you use a platform with 2-factor authentication as an additional layer of security.
Here are some things to look for when purchasing DeFi Pulse Index
Innovative monetary propositionDPI tokens can be purchased to gain full access to the DeFi Pulse Index tokens.
Redeemable directly: DPI tokens can be liquidated in exchange for one or more of the index’s tokens. Investors may hold an interest in any number of DeFi currencies with a single token. They can spread the risk and have their stakes increased.
Support team solid: The administration of DeFi Pulse Index can be supervised by Concourse, a separate crypto community made up of experts, enthusiasts, academics and digital currency developers.
Closing Thoughts
A long-term plan is essential when trading in indexes; the DeFi Pulse Index isn’t the only token of its type on the market, as other indexes are also constantly emerging. DPI’s main rivals are now the DeFi Top 5 Index (DEFI5) and the PieDAI DeFi Large Cap (DEFI+L).
DeFi is crucial for the continued existence of DPI and other indexes. However, this market has suffered significant losses in recent months. DPI currently stands at $98.96. That’s 83.8% lower than its May 2018 high of $612.08 (May 2017). But it’s not all bad news; the token is still up 71.6% from its low of $57.66 in November 2020.
Our CoinStats blog provides information about crypto exchanges, wallets, portfolio trackers and tokens. We also offer in-depth buying guide for buying various cryptocurrency, including How To Buy VeChain. What Is DeFi. How Can I Buy Cryptocurrency.
Disclaimer about investment adviceInformation on this site is for your information only. CoinStats does not endorse any recommendation to sell, buy or hold securities or financial products. This information does NOT constitute financial advice or trading advice. Information on this website is not based on any financial institution. It may be different from information you get from service providers.
Market risks, such as the possibility of losing principal, are all part and parcel of investing. Because cryptocurrency can fluctuate and is sensitive to secondary activities, it’s important to do independent research and seek advice. You should never invest more money that you can afford. Trading stocks and CFDs can be risky. CFDs can result in losses between 74-89% for retail investors accounts. It is important to consider all aspects of your financial situation before you make any investments. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant regulators’ websites before making any decision.