Cook Finance
Search…
ETH DeFi Index (EDI)
ETH DeFi Index (EDI) includes the DeFi projects that have the largest circulating market capitalizations on the Ethereum blockchain.

Objective

The ETH DeFi Index (EDI) is an index designed to track the performance of the top DeFi projects. The index is weighted based on the value of each token’s circulating supply.

Methodology

The following criteria is used to select what tokens will be included in the ETH DeFi Index (EDI):
  • The tokens are available on Ethereum mainnet
  • The token must not be considered a security by the corresponding authorities across different jurisdictions.
  • The selected tokens must have sufficient liquidity across a variety of trading platforms.
  • The tokens must be ranked as top 50 tokens with the largest market cap on Coingecko and CoinMarketCap consistently
  • The tokens must have gone through audits and must comply with security best practices
The circulating market capitalizations of each project are used to calculate index composition.
Initial Allocation Breakdown:
ETH
UNI
LINK
MATIC
AAVE
MAKER
  • circulating_supply is the number of tokens circulating in the market. CoinGecko is used as a reference source
  • market_price is the market price of the token in USD. CoinGecko is used as a reference source
  • index_divisor is a constant used to compute the nominal value of the index. The divisor is 523331810 at inception
  • index_price is the spot value of the index token
  • Any token that has a weight greater than 25% has its weight capped at 25%

Operation

The ETH DeFi Index (EDI) is a tokenized representation of the top DeFi projects on Ethereum.
At the third week of every month, the ETH DeFi Index (EDI) will be evaluated and tokens can be added and deleted from the index. As a result, the circulating supply of each component token will be recalculated based on the data from CoinGecko after updates on the index composition. The index components are adjusted, added, deleted or unchanged. New index weights, additions and deletions are incorporated into the index during the monthly reconstitution, which will take place on the first business day of the month.
Last modified 6mo ago