If you are tired of chasing the latest DeFi coin and are unsecure which one to invest in then DEFI100 could be interesting for you. It makes investing in the Binance Smart Chain DeFi ecosystem easy. You can simply buy one single token called DEFI100-Rebase with the token ticker $D100.
DEFI100 is a synthetic asset that is pegged to the entire DeFi market cap on the Binance smart chain. If you invest in DEFI100 you essentially invest in a dynamically updated token which contains the most popular DeFi tokens on Binance such as Venus (XVS) or PancakeSwap (CAKE).
Probably you are familiar with investing into the stock market through ETFs (Exchange Traded Funds). Synthetic products such as DEFI100 are trying to transform the idea behind ETFs to the crypto ecosystem. Essentially it is an easy way for users to gain a broad exposure to a growing industry. However, through the synthetic nature of the product an extra layer of risk is added compared to simply holding the actual tokens.
Similar approaches also exist on Ethereum. An example is the $DPI index which is issued by Set Protocol and contains the leading DeFi tokens on Ethereum such as UNI or AAVE. The protocol holds the underlying assets and rebalances them automatically.
If you are not familiar with the concept of index fund investing you can check out our blog post covering the topic: https://frontierprotocols.com/index-fund-investing-in-the-blockchain-space/
Background
DEFI100 was launched in December 2020. After the launch on the Binance Smart Chain the project also intends to launch on the HECO chain in the third quarter of 2021.
Features
- The $D100 token is replicating the total market cap of the DeFi industry on the Binance Smart Chain in the relation 1:100 billion. This means if DeFi on BSC will be worth 100 billion USD then $D100 will be worth 1 USD.
- The $D100 token is automatically rebalancing itself in order to reflect the latest market conditions. Users can benefit from changes in the DeFi landscape without the need to actively manage their own portfolio.
- The $D100 is powered by decentralized oracles. For this purpose DEFI100 has a strategic partnership with DIA (Decentralized Assets Information). DIA enables DEFI100 to source the information it needs from an independent oracle. DIA will obtain the information from CoinGecko and then deliver it to the DEFI100 protocol. In case you are new to the concept of decentralized oracles you can check out our article about Berry Data which is providing blockchain oracle services for the Binance Smart Chain: https://frontierprotocols.com/berry-data-oracle-services-for-binance-smart-chain/
IDO (Initial DEX Offering)
DEFI100-Rebase is scheduled to hold its IDO on February 22nd 9:00 AM UTC. It will be launched as a BEP-20 token. The initially issued token supply is elastic. 5% of the token supply will be reserved for the team. 50% of the supply will be available for the public sale. The remaining token supply will be used for liquidity mining and farming rewards as well as for the ecosystem fund.