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CoinDesk Indices Proposes Methodology Change for the CoinDesk DeFi Index (DFX)

April 4, 2022: CoinDesk Indices is seeking feedback on a proposal to change the Methodology for the CoinDesk DeFi Index (“DFX”) to follow the CoinDesk Select Sector Indices Methodology. This change is designed to provide a consistent and transparent rules-based approach to managing and reconstituting CoinDesk’s Sector Indices, which are derived from the Digital Asset Classification Standard (DACS) and include requirements for market capitalization, liquidity, trading, and custody.

The objective of the CoinDesk Select Sector Index Methodology is to select the largest and most liquid assets from individual DACS sectors. The process to screen and select digital assets may result in fewer constituents than the DeFi methodology. Each methodology has a minimum constituent count requirement to improve diversification.

CoinDesk Indices has reviewed the DeFi and Select Sector Index Methodologies and summarized the key differences in Table 1:


Table 1: Methodology Differences

Criteria DFX Methodology Select Sector Methodology
Trading Volume Look Back 90-day mean USD notional 30-day median USD notional
Market capitalization Requirement(s) Two Criteria are used for market capitalization: 1. The median 90-day market cap compared to the median 90-day market caps of all digital assets.

2. Median closing market cap compared to the mean of the median closing market caps of all digital assets.

Closing market cap compared to median closing market cap of all digital assets in the Selection Universe(Median 90-day removed due to inclusion of Watchlist for additions)
DFX Cohort Top 200 based on median 90-day market capitalization Top 200 based on latest DACS rank that meet custody   requirements
Selection Universe All digital assets in the DFX Cohort Top 20 assets by market capitalization from   the DFX Cohort
Deletions Seasoning period requiring asset to fail criteria   for two consecutive quarters Lower market capitalization and liquidity   requirements for current constituents to reduce turnover
Minimum Size no minimum weight requirement 1% minimum weight
Circulating Supply Calculation uses Total Circulating Supply Calculation uses Circulating Supply
Circulating Supply Timing updated daily at 4PM updated and fixed at reconstitution
Reconstitution 1st business day of Jan/Apr/Jul/Oct 2nd business day of Jan/Apr/Jul/Oct

Based on data from March 16, 2022, CoinDesk Indices simulated the April 2022 reconstitution of DFX, using the DeFi Methodology and the Select Sector Indices methodology. The results are provided in Table 2.

Table 2: Summary of Proforma Constituents and Weights Comparison

Symbol Name Q1 Constituent Weight DFX Methodology Reconstitution Weight Select Sector Methodology Reconstitution Weight
UNI Uniswap 43.4% 44.1% 48.8%
AAVE Aave 13.4% 13.6% 15.1%
MKR Maker 13.1% 13.3% 14.7%
AMP Amp 7.4% 7.5% 8.3%
CRV Curve DAO Token 6.7% 6.8% 7.6%
COMP Compound 5.1% 5.2% 0.0%
YFI yearn. finance 4.9% 5.0% 5.5%
1INCH 1inch Network 0.0% 4.4% 0.0%
SNX Synthetix 3.4% 0.0% 0.0%
SUSHI SushiSwap 2.7% 0.0% 0.0%
100.0% 100.0% 100.0%

*Market capitalization data sourced from as of 3/16/2022


Based on data from April 1, 2022, CoinDesk Indices calculated the difference in weight between the Q2 DFX constituents using Total Circulating Supply and Circulating Supply (also referred to as publicly available supply). The results are provided in Table 3.

Table 3: Constituents Weights using Total Circulating Supply vs Circulating Supply

Symbol Weight using DFX Methodology Total Circulating Supply Weight using Select Sector Methodology Circulating Supply
AAVE 14.10% 18.66%
AMP 10.57% 6.96%
COMP 5.67% 5.87%
CRV 17.30% 7.34%
MKR 7.92% 12.27%
UNI 41.40% 44.21%
YFI 3.03% 4.70%
100.00% 100.00%

*Data sourced from as of 4/1/2022

Consultation Questions:

1. Do you agree with the proposal to transition the CoinDesk Defi Index to follow the CoinDesk Select Sector Indices Methodology?

2. Do you have other suggestions that CoinDesk should consider in making its final determination?

3. If the results of this consultation lead to changes, CoinDesk would propose that these changes be implemented during the Q3 2022 rebalance, which will occur at the beginning of July. Do you agree with this timing?

All responses to this consultation should be sent to This consultation will be closed on April 22, 2022. Once closed, the Index Committee will review the feedback and announce results within 30 days.

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