Proposal to Whitelist DEFI5

Voting ended almost 5 years agoSucceeded

Original Proposal

VOTES ON THIS PROPOSAL ARE SPECIFIC TO DEFI5

This proposal is part of the general proposal to whitelist Indexed Finance indices. The parent document can be found here.

DEFI5 is the flagship product of Indexed Finance with the highest TVL and the best performance across all indices in the DeFi space. Since its launch on December 22nd 2020 DEFI5’s price has increased by over 430%.

It consists of the Top 5 DeFi projects by market cap namely:

UNI ($17b), 24h trading volume:$770,422,890
AAVE ($4.5b), 24h trading volume: $320,593,781
COMP ($1.7b), 24h trading volume: $90,759,381
SNX ($2.9b), 24h trading volume: $119,708,097
CRV ($656m), 24 trading volume: $143,302,744

How does DEFI5 work?

DEFI5 assets sit in a liquidity pool and re-balance automatically based on the market caps of the underlying tokens. A controller contract fetches the market capitalization of each token from a Uniswap price oracle and submits new target weights to the index pool based on a capitalization-rooted weighting algorithm.

DEFI5 tokens are actually LP tokens that represent a share in the AMM pool. They can be redeemed at all times against the underlying tokens in the pool or sold on a decentralized exchange provided there is sufficient liquidity.

DEFI5 contract address: 0x86772b1409b61c639eaac9ba0acfbb6e238e5f83

Security

The Index Pool contract is a fork of the Balancer Pool. The primary changes made to the contract were to enable more dynamic pool management so that assets can be bound, rebound and reweighed gradually and without the need to access external liquidity.

These changes have been audited by two independent security experts: Daniel Luca, a former auditor for Consensys diligence, and Mudit Gupta, the lead blockchain engineer at Polymath.

Daniel Luca Audit Mudit Gupta

Although DEFI5 doesn’t have a large market cap itself, it represents a basket of the largest and arguably most secure tokens in the entire DEFI space.

Approximately two-thirds of the token supply is spread across the liquidity pool, the rewards contract, and the MATIC network bridge; the largest token holder owns 4.4% of the token supply.

Volume & Fees

DEFI5 market cap: $15m
TVL in the DEFI5 pool: $12m
24h volume: $284K
24h fees: $854

Off-Chain Vote

FOR

9.43M 93%

AGAINST

707.02K 7%

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Timeline

Apr 05, 2021Proposal created

Apr 05, 2021Proposal vote started

Apr 08, 2021Proposal vote ended

Oct 08, 2025Proposal updated

VOTES ON THIS PROPOSAL ARE SPECIFIC TO DEFI5

This proposal is part of the general proposal to whitelist Indexed Finance indices. The parent document can be found here.

It consists of the Top 5 DeFi projects by market cap namely:

UNI ($17b), 24h trading volume:$770,422,890

AAVE ($4.5b), 24h trading volume: $320,593,781

COMP ($1.7b), 24h trading volume: $90,759,381

SNX ($2.9b), 24h trading volume: $119,708,097

CRV ($656m), 24 trading volume: $143,302,744

How does DEFI5 work?

Security

These changes have been audited by two independent security experts: Daniel Luca, a former auditor for Consensys diligence, and Mudit Gupta, the lead blockchain engineer at Polymath.

Although DEFI5 doesn’t have a large market cap itself, it represents a basket of the largest and arguably most secure tokens in the entire DEFI space.

Approximately two-thirds of the token supply is spread across the liquidity pool, the rewards contract, and the MATIC network bridge; the largest token holder owns 4.4% of the token supply.