Home » News » January 2023 Rebalance DeFi Pulse Index

January 2023 Rebalance DeFi Pulse Index

Scalara announces the results of the January 2023 rebalance of the DeFi Pulse Index.

The DeFi Pulse Index is a digital asset index designed to track the performance of some of the largest protocols in the Decentralized Finance (DeFi) space. Over the last three months, since the last rebalancing, the DeFi Pulse Index returned 92%.

Data from Coingecko. January 31, 2023.

In 2023 alone, the DeFi Pulse Index returned +50% led by Synthetix (+94%), Loopring (+93%) and Compound (+68%).

DeFi Pulse Index rebalance weights

Rebalance summary

The above index weightfactors and weights were calculated using prices and circulating supplies of all constituents as of January 26, 2023.

At the January 2023 index rebalance, one token was removed from the DeFi Pulse Index, resulting in 9 index constituents. REN was removed due to the projects’ continued decreased usage. At 1.55% as of determination time, REN was also the smallest token by weight in the index.

The two largest weight changes in the index were the capping of UNI and the weight increase of SNX. UNI’s 55% allocation under market cap weighting once again would have breached the allocation limit of 25% for any single constituent. The Flexible Capping rule moved its weight half the way from the current index weight to the 25% target to reduce turnover. The added weight in SNX was due to its increased circulating supply.
The total one-way turnover of the rebalancing is 3.7%.

Scalara is dedicated to creating and maintaining indices for a decentralized world.

Leave a Reply

Your email address will not be published. Required fields are marked *