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October 2022 Rebalance DeFi Pulse Index

Scalara announces the results of the October 2022 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 the DeFi Pulse Index returned -20%.

Coingecko data.

On a shorter time scale, just in October, the DeFi Pulse Index returned +8% led by Sushi (+53%), Balancer (+26%) and Maker (+23%).

DeFi Pulse Index rebalance weights

Rebalance summary

The above index weightfactors and weights were calculated using prices and circulating supplies of all 12 assets as of October 25, 2022.

At the October 2022 index rebalance, two tokens are removed from the DeFi Pulse Index while no new tokens are added, resulting in 10 index constituents. Both KNC and BADGER are removed due to their respective projects’ continued decreased usage. Coincidentally they are also the two smallest tokens by weight in the index (combined approximately 2%).

For most constituents of the DeFi Pulse Index, the index weight increased marginally this quarter to make up for the two removals and the capping of UNI. UNI’s 53% allocation under market cap weighting once again would have breached the allocation limit of 25% for any single constituent without any capping. The Flexible Capping rule moved its weight half the way from the current index weight to the 25% target to reduce turnover.
The total one-way turnover of the rebalancing is 4.5%.

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

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