Update To The Methodology Of The BNC Blue-Chip DeFi Index
Following the Quarterly Index Review and approval from the Brave New Coin (BNC) Oversight Committee, the BNC Index Committee will update the methodology of the BNC Blue-Chip DeFi Index (BBDX), formerly known as the BNC DeFi Index.
The changes to the methodology are summarized below and will be reflected in the respective index methodology.
Updates to the methodology were made to ensure the Index can best measure the underlying interest (Large Cap Ethereum Crypto Assets with Decentralized Finance Applications).
| Methodology | Section | Current Methodology | Updated Methodology |
|---|---|---|---|
| Maximum Basket Size | 1.0 | The index tracks a 10 asset basket, weighted by free float market capitalization, capped at 25%. | The index has a maximum basket size of 8 assets and is rebalanced quarterly based on a free float market capitalization weighting with a cap of 25%. |
| DeFi Asset Criteria | 2.1 | 1. Decentralised Financial Use Case: The protocol must have a financial application or use case | 1. Decentralised Financial Application: The protocol must be explicitly geared towards decentralised financial applications such as decentralized marketplaces & exchanges, asset issuance, insurance, checking accounts, investment services, borrowing and lending, asset management and prediction markets. 10. Token Standard: Token must be compliant to the Ethereum ERC-20 standard. |
These changes do not affect the day-to-day calculation of the index, only those assets that are eligible for selection and the number of assets selected at the quarterly rebalance. As such, this change will be in effect at the next rebalance, Wednesday, February 10, 2021 at 08:00 am (UTC).
Please see the below public release for full details on this announcement.
Planning your 2024 crypto-media spend? Brave New Coin’s combined website, podcast, newsletters and YouTube channel deliver over 500,000 brand impressions a month to engaged crypto fans worldwide.
Don’t miss out – Find out more today
