TCAP StackUp: DeFi Pulse Index (DPI)
September 28, 2021 | Mkatx5
Updates as of 11/1/2021: DPI consists of a fixed basket of 18 tokens and a market cap of $204.64m. TCAP has a market cap of $9.45m.
Does the sheer number of different cryptocurrencies make your head spin? Or perhaps keeping track of the taxable events while rebalancing your portfolio and having to shell out for gas fees has you down? Enter crypto index tokens: offering broad crypto exposure, savings on gas fees, and automatic rebalancing - all to make your investing journey easier. However, as always in crypto, there's more than one option to choose from; let's dig into the popular DeFi Pulse Index (DPI) and Total Crypto Market Cap Token (TCAP) to see how they stack up.
StackUp Verdict
DPI & TCAP each come with their own strengths to consider:
- Are you new to crypto and unsure which tokens to buy, but believe in the long-term growth of the crypto asset class and want broad exposure to it? - TCAP might be for you.
- Do you already have an established crypto portfolio and are just looking to specifically round out your DeFi exposure? - DPI could be a good option to consider.
- Or perhaps you've called the top of the bull market and you want to open up a short position? - Both DPI and TCAP's minting capabilities offer this to advanced users.
Certainly there are other considerations to keep in mind for your particular situation as well. But when you're evaluating index token options, whether they be DPI, TCAP or something else, keep these key considerations in the back of your mind. Don't forget to stay tuned into Cryptex for more index token StackUps.
About the Tokens
DeFi Pulse Index (DPI)
The DeFi Pulse Index, by IndexCoop, is a digital asset index designed to track tokens’ performance within the Decentralized Finance industry. Built on TokenSets, the index is weighted based on the value of each token’s circulating supply. The DeFi Pulse Index aims to track projects in Decentralized Finance that have significant usage and show a commitment to ongoing maintenance and development.
DPI rebalances monthly with the latest allocation holding 16 tokens: UNI, AAVE, MKR, SUSHI, and COMP accounting for about 70% of the current index holdings. For more information, visit https://www.indexcoop.com/dpi.
Total Cryptocurrency Market Capitalization (TCAP)
Total Crypto Market Cap Token (TCAP), by the Cryptex team, is designed to give investors accurate, real-time price exposure to the total capitalization of the cryptocurrency market via a single, synthetic asset. Data from a number of oracles is aggregated in order to establish a total market cap median value, which is then bridged on-chain through an audited Chainlink Smart Contract.
TCAP rebalances in real-time and by design includes everything: DeFi, DeFi Indexes, Stablecoins, Governance Tokens, Asset-back tokens, and wrapped tokens. For more information, visit https://cryptex.finance/.
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