A change in trend? — $DPI rebounds in July
While the market remained within a narrow trading range, a recent rebound off the lows set in July has been heralded as a potential trend reversal. As is typical in crypto markets, the rebound was partially attributed to a strong showing for Bitcoin (+18.7%). $DPI (+18.3%) managed to keep pace with the Bitcoin rebound, outperforming $ETH (+11.5%) during the month.
Year-to-date through the end of July, $DPI is up +160.0%, $BTC is up +43.9%, and $ETH is up +244.1%.
Ecosystem Updates
- $DPI has been included in the new Bankless BED index ($BED) from Index Coop. BED — which stands for Bitcoin, Ethereum, and DeFi — captures the upside of the three most investable crypto themes in a single ERC-20 token: digital gold, programmable money, and decentralized finance.
- Index Coop’s Michael Mtenga released What to Do with Your $DPI, an article detailing how to make your $DPI productive. In the article, you can learn how to unlock yield for your passive DeFi exposure by providing liquidity, yield farming, lending collateral, or creating a collateral debt position.
- Looking to learn more about $DPI? Check out the new Definitive Guide to the DeFi Pulse Index.
Portfolio Analytics
$FARM (+327.9%), $SNX (+38.9%), and $AAVE (+32.2%) were performance leaders this month. $FARM notably did a 3x, contributing approximately +0.6% to the total return, which is pretty impressive given it is one of the smallest positions in the index.
Laggards this month included $LRC (-5.3%), $KNC (-3.0%), and $BAL (-2.3%).
Constituent Highlights
$FARM: Harvest Finance had a series of exciting announcements during the month of July. V2 was officially launched on July 12th giving the Harvest Finance app a new UX/UI while enabling the creation of vaults across different chains. This was quickly followed by an integration with Polygon and a relaunch on Binance Smart Chain. Finally, $FARM was listed on Coinbase at the end of the month resulting in a +174% gain from July 29th through the end of the month.
$UNI: $UNI was a below average performer this month following some controversies with Uniswap Labs, a development studio that contributes to the Uniswap protocol. First, likely in response to growing regulatory pressure on tokenized stocks, Uniswap Labs restricted access to a handful of tokens on the app.uniswap.org front-end. It’s important to note that this is a restriction at the interface level and not at the smart contract level, meaning it is still possible to exchange these tokens using the Uniswap protocol with a different front-end than the Uniswap Labs website.
In another controversy, Uniswap Lab’s Ashleigh Schap seemed to imply that the organization is working with PayPal, E*Trade, and Stripe in an EthCC presentation that has been scrubbed from Youtube (but is available on IPFS). In the video, Ashleigh suggests DeFi will operate as a base layer for FinTech companies, with protocols like Uniswap providing a larger variety of assets, instant settlement, and 24/7 availability to the more UX-driven fintech offerings.
Rebalancing Summary
The July rebalance saw contributions to the $SNX and $UNI positions. In addition, $BADGER was initiated this month with a starting position of
Introducing $BADGER: The biggest change to the allocation for July is the introduction of a 0.43% position in $BADGER, the native governance token of Badger DAO. Badger DAO’s goal is to create an ecosystem of DeFi products built on top of Bitcoin. The $BADGER token allows community members to take part in governance and earn staking rewards. It has a maximum supply of 21 million tokens, like $BTC.
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