FTX an exchange launched in 2019 has since Friday launched its DeFi Index. The index aims to track the value of a basket of DeFi products.
The index was launched after a vote was held on the FTX platform. Holders of FTX’s FTT Token could vote between either the DeFi index or VeChain with the DeFi index winning by a large margin.
Currently the index is made up of 11 different coins. KNC, LEND, MKR, KAVA, ZRX, LRC, REN, REP, BNT, SNX, and COMP. The full index weightings can be found on FTX’s help page.
DeFi stands for decentralized finance and represents a broad net of cryptocurrency products that have one main theme in common. Taking existing traditional financial systems and products and making them trustless and transparent through the use of blockchain technology. You can bring a lot of profits through the vast arena of opportunities bitcoin and cryptocurrency trading provides which are backed by Blockchain Technology. Good knowledge of bitcoin trading through trading bots will take you a long way. Have a look at this bitcoin loophole review which can make your trading easier and flexible. Get a pace with the best performing asset on the whole planet and start trading now.
DeFi products can vary from decentralized exchange tokens such as ZRX to liquidity aggregators with KNC or stablecoins that accrue interest.
At the same time that FTX launched its DeFi Index it launched both a market for COMP. Another DeFi product. COMP and CUSDT only launched this week. COMPS value has more than doubled in that space of time and according to DeFi Market Cap it is currently the largest DeFi product with a market capitalization of over $2 billion. Jumping the previous leader MakerDAO.
COMP is a decentralised governance token which allows users to vote on changes to the Compound protocol. These changes can be the addition of new assets to the platform, token buy backs, and fee changes. Mycryptopedia has written an excellent article explaining the entirety of the Compound protocol.
Alongside the launch of the perpetual swaps for COMP and the DeFi index they launched a variety of futures contracts and leveraged tokens. Since the launch COMP has risen over 40% while DeFi has risen over 15%.