Compass Crypto Basket Fundamental DeFi Index

The Compass Crypto Basket Fundamental DeFi Index is a diversified digital asset index designed with the objective of offering a broad exposure to the Decentralized Finance (DeFi) sector while capping each component exposure to 35%. DeFi refers to all the Financial Dapps (Decentralized-apps) and services built on top of blockchains using smart contracts which rely on no central entity to control or validate transactions. All is done ”on chain”, thus allowing more safety and less transaction and operational costs compared to traditional finance. The Index is to be composed of the 10 most representative and liquid DeFi tokens. Weightings are based on liquidity, market capitalization and protocol revenue metrics. The Compass Fundamental DeFi Index combines expertise in cryptocurrency and index engineering to offer investors a diversified exposure to the crypto DeFi world. As a first step cryptoassets classified as ”DeFi” by CoinGecko have been selected. Then, a study was done on each preselected token in order to finally determine the eligible ones based on their legitimacy regarding the DeFi sector, as well as the reliability and strength of the projects.