Amun has launched two new crypto token products – the DeFi Index Token (DFI) and DeFi Momentum Index (DMX), which provide the crypto community with diversified access to the top decentralised finance protocols in the Ethereum ecosystem.
DeFi is crypto’s most vibrant ecosystem with over USD50 billion in total value locked and hundreds of projects spanning lending, borrowing, exchanges, and more. DeFi’s dizzying pace of change also makes it a challenge for participants. New projects are constantly hitting the market and scams are sadly a frequent occurrence.
DFI and DMX employ rule-based smart contracts to provide broad exposure to the Ethereum DeFi ecosystem in an easy, automated, and cost efficient manner.
“Amun’s mission is to make buying crypto easy, safe, and efficient. Our sister company 21Shares is the world’s largest issuer of crypto exchange-traded products. With the launch of DFI and DMX, we are now bringing innovative and easy to use on-chain products that simplify access for crypto natives,” says Hany Rashwan, CEO of Amun.
The DeFi Index (DFI) Token is the easiest way to gain exposure to blue chip DeFi projects. It selects the top eight DeFi projects by market capitalisation and allocates them equal-weight in the index. Because the pace of innovation in DeFi is far greater than traditional finance, upstarts often surpass incumbents in weeks rather than years. By being equally weighted, DFI captures more of a protocol’s growth phase compared to market weighted indices. DFI rebalances monthly to lock-in gains and is fee free until 2022.
Finding the next project that’s about to “moon” is one of the most lucrative but time consuming tasks of crypto. Amun’s DeFi Momentum Index (DMX) is designed to automate this process by automatically allocating based on price momentum calculated using the relative strength index. DeFi protocols with the eight highest momentum factors are selected and allocated equal-weight. In bull markets, DMX acquires tokens with the strongest price action while in bear markets, DMX shifts its allocation to include stablecoins for downside protection. Holdings may enter or leave the portfolio daily. Portfolio weights rebalances monthly.