This index announcement details the methodology for the BNC Blue-Chip DeFi Index, which tracks the real-time market performance of the largest 8 DeFi assets.
Decentralised Finance (DeFi) is an open-source and transparent financial service ecosystem that represents a broad category of applications built on decentralized networks. DeFi leverages decentralised networks to transform legacy banking services and financial products into trustless and transparent protocols that can run without intermediaries.
Some of these products and services include decentralized marketplaces & exchanges, asset issuance, insurance, checking accounts, investment services, borrowing and lending, asset management and prediction markets.
The BNC DeFi Index tracks the real-time market performance of the 8 largest DeFi assets. Launched in September 2020, this institutional-grade index product is the first in the world to track DeFi assets across multiple pricing sources, at sub second frequency. The index tracks an 8 asset basket weighted by free float market capitalization, capped at 25%.
The index is owned and administered by Brave New Coin under the principles:
|The index should closely follow the target market and represent an adequate sample.
|The index should be transparent in its design and reproducible in its calculation.
|The index should be computed as frequently as necessary to reflect price changes in the constituent assets.
|The index should be robust to disruptions such as erroneous data or pricing source outages, and be resistant to manipulation.
Please see the below public release for full details on this announcement.