Indexes

What is an Index in DeFi?

A DeFi Index is like buying a bundle of tokens instead of just one — all wrapped into a single, easy-to-hold asset. Just like in traditional finance where you can buy a stock index (like the S&P 500), in DeFi you can hold a mix of crypto assets that follow a specific theme or sector, such as:

• Top DeFi tokens

• LSD (Liquid Staking Derivatives)

• Stablecoin vaults

• Meme coins

Why Indexes Are Great for Beginners

• Diversified — You’re not putting all your eggs in one basket

• Low-maintenance — No need to swap between tokens or manage allocations

• Balanced exposure — You ride the wave of the whole sector, not just one asset

What Are the Risks?

Even with indexes, there are a few things to keep in mind:

• Market risk — If the overall theme (e.g. DeFi or LSDs) goes down, your index will too

• Rebalancing delays — The index may not adjust instantly to market moves

• Protocol risk — The index platform (like Index Coop or Galleon) must be secure