Swiss index provider launches new product tracking 10 DeFi tokens

Published at: Feb. 23, 2022

Switzerland-based fund manager Compass Financial Technologies has launched an index for 10 Decentralized Finance (DeFi) tokens dubbed the “Compass Crypto Basket Fundamental DeFi Index” (CCBFDEFI).

The firm was founded in 2017 and offers indices and services tailored to crypto, commodities, multi-assets and real estate. It manages around $5 billion worth of investment products related to its indices.

The CCBFDEFI went live on Feb. 22 and it provides institutional exposure to a group of 10 DeFi tokens that are individually weighted based on “ liquidity, market capitalization and protocol revenue metrics” and on-chain data.

The max weighting for any given token is capped at 35% and the group of assets is selected each month. The firm has listed more than 20 approved tokens that can be used as the components for the Index each month such as UniSwap (UNI) Compound (COMP) Aave (AAVE) and SushiSwap (SUSHI).

Compass Financial Technologies CEO Guillaume Le Fur emphasized the institutional appetite for crypto exposure is “growing significantly” as firms seek out ways to invest in the sector in a compliant manner:

“Incorporating fundamental metrics in index creation offers investors the possibility to allocate in the most efficient DeFi tokens based on rational economic indicators."

The CCBFDEFI is live on the firm’s website along with Bloomberg and Refinitiv and is compliant with EU Benchmark Regulations (EU BMR). The product is also available for use under a license agreement with Compass Financial Technologies.

Related: Automated order books eliminate DeFi costs and match CEX capability

Compass Financial Technologies also partnered with top crypto fund manager CoinShares in late January to provide its indices for reference prices as part of CoinShares Physical Exchange-traded products (ETPs) which take zero management fees and offer staking rewards.

Thanks to the @CoinSharesCo team for choosing our EU BMR-compliant Compass Crypto Reference Indices as reference prices for their Coinshares Physical ETPs including for the new CoinShares Physical Staked Tezos and CoinShares Physical Staked Polkadot ETPs. https://t.co/v3QgMxLLg0

— COMPASS Financial Technologies (@CompassFT) January 26, 2022

In April last year, the firm launched a suite of EU BMR compliant crypto indices that covered areas ranging from reference prices to smart-risk control and volatility targets.

Tags
Business
Price Indexes
Defi
Tokens
Coinshares
Related Posts
The DeFi revolution is like cooking a recipe
In the last two months, the decentralized finance industry has seen a dramatic surge of interest, as new platforms promising to disrupt the way people manage their money, transact, earn and entertain themselves have launched in rapid succession in recent months. Much of this growth has been catalyzed by the meteoric rise of DeFi lending platforms like MakerDAO and Aave, which together now compose more than 40% of the DeFi market. But a wave of new DeFi products that are targeting practically every traditional and digital industry is now making the rounds, expanding the benefits of DeFi to casual consumers …
Decentralization / Sept. 5, 2020
OKEx Announced The Listing of Compound DeFi Protocol's COMP Token
Cryptocurrency exchange OKEx have just listed Compound’s COMP token for trade. COMP is the native token of Compound — a DeFi protocol that allows its users to earn interest on deposits or lend cryptocurrencies. Lending and borrowing on Compound are managed through a decentralized peer-to-peer blockchain-based protocol. After its 2017 launch, the platform grew to reach the top spot among all the DeFi services based on the total value of assets locked, according to DeFi Pulse. According to the same source, there are currently nearly $628 million currently locked in the ecosystem. As Cointelegraph recently reported, COMP has suffered heavy …
Bitcoin / June 29, 2020
Boson Protocol seeks to blend physical and digital marketplaces in the Metaverse
Boson Protocol is a decentralized commerce protocol that seeks to enable the sale of physical goods, services and experiences in the Metaverse as nonfungible tokens (NFTs), and hopes to provide an infrastructure layer for exchanging assets of non-monetary value. For example, an NFT of a pair of sneakers bought using the Boson Protocol in the Metaverse would then be redeemable for that physical pair of sneakers in the real world, and vice versa. Ahead of the launch of its first Metaverse commerce experience in Decentraland, called Boson Portal, Cointelegraph spoke with Justin Banon, co-founder of Boson Protocol, to learn more …
Adoption / Nov. 18, 2021
‘We want to build Minterest as a fairer financial system,’ says CEO Josh Rogers
Decentralized finance (DeFi) protocols have gained significant traction in the cryptocurrency sector, with a total value locked surpassing $271 billion, based on data from DefiLlama. One exceptionally popular category of DeFi services is that of decentralized borrowing and lending, where users can pledge their crypto as collateral and take out stablecoin loans (or vice versa) to pay for everyday expenses while their investment continues to grow. Such protocols typically charge a spread or difference between deposit and lending rates as a service fee. But then there are protocols like Minterest that seek to distribute a vast majority, if not all, …
Decentralization / Nov. 18, 2021
What is opportunity cost? A definition and examples
Opportunity cost, explained Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen. Consider the scenario when you have a limited budget and are debating between buying a new laptop or going on vacation. The value of the vacation you could have taken with the same amount of money would be the opportunity cost if you decide to buy the laptop. Similarly, if you decide to take the vacation, the opportunity cost would be …
Decentralization / March 1, 2023