December 2021 Rebalance DeFi Pulse Index

Feb 04, 2022
|2 minutes read
dpi rebalance december announces the results of the December 2021 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.

DeFi Pulse Index rebalance weights

Rebalance summary

At the December 2021 index rebalance no tokens were added to or removed from the index, leaving the number of constituents at 17.

The above index weightfactors and weights were calculated using prices and circulating supplies of all constituents as of 12-24-2021.

For the first time, the new Flexible Capping methodology was applied that was added in index methodology v0.4.

For most constituents of the DeFi Pulse Index, the index weight only changed marginally. Without any capping UNI’s 34% allocation under market cap weighting once again would have breached our allocation limit of 25%, the newly introduced Flexible Capping moved its weight half the way to the 25% target. 

As the LRC allocation was frozen during the November rebalance due to very low liquidity at the time, its current index weight is higher than Looprings market capitalization implies. Therefore, a larger change is now necessary to bring the index back to its intended allocation.