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July 2023 Rebalance DeFi Pulse Index

Scalara announces the results of the July 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 gained 10%.

Data from Coingecko. July 31, 2023.

Year to date through July, the DeFi Pulse Index returned +46% led by Maker (+139%), Compound (+131%) and Lido (+96%).

Data from Coingecko. July 31, 2023.

DeFi Pulse Index rebalance weights

Rebalance summary

The above index weightfactors and weights were calculated using prices and circulating supplies of all 12 constituents as of July 27, 2023.

At the July 2023 index rebalance, the phasing in of Lido’s LDO and Rocket Pool’s RPL that was started in April was continued. Two-thirds of the circulating supply are considered during determination of new weightfactors.
In addition, the removal of Loopring due to decreased relevance of its DeFi service was started. At this rebalancing only half of the weight is removed.
In both cases low liquidity on decentralized exchanges is reason to apply this stepwise approach. It aims to mitigate the market impact of these index changes.
Therefore, the DeFi Pulse Index is still composed of 10 constituents.

As a result of the continued addition of LDO and RPL all other constituent weights decrease (except UNI due to its continued 25% capping). The total one-way turnover of the rebalancing is 8.9%

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

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