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DeFi Value Index
Get in on the most undervalued DeFi projects for maximum returns
Looking for the best investment opportunities in the ever-growing world of DeFi? Look no further than the SW DAO DeFi Value Index. Our team of experts uses a variety of fundamental criteria to determine which crypto projects are undervalued, so you can be sure you're getting in on the ground floor of some major potential winners. We use a mixture of ratios and metrics like the price to earnings to determine which tokens are fundamentally undervalued by the public markets.
By purchasing the DVI token you get one-click access to a diversified basket of assets with no hassle. Allowing you to enjoy the DeFi market's potential without having to worry about picking the right projects.
DeFi Value Index Methodology
- 5 Lowest Price-to-Earnings Ratio Tokens
- Market Cap Weighted
- Sufficient Polygon DEX Liquidity
- Rebalanced Quarterly
Asset Inclusion
The DeFi Value Index uses data provided by Token Terminal to find the five most undervalued DeFi tokens on a 30-day average, based on their price-to-earnings ratio.
The price-to-earnings ratio is a way to measure how much a company's token costs in relation to how much money the company makes. A high P/E could mean that the token price is relatively high and could be overvalued. Conversely, a low P/E might indicate that the current token price is relatively low and might be a good investment.
P/E ratio calculation: fully diluted market cap / annualized protocol revenue
Asset Weighting
This index is designed to reflect the performance of a basket of crypto projects, and it does so by converting each project's market cap into a weighting factor. The result? An accurate representation of how valuable these tokens are based on their current impact on the broad market.
The market-cap-weighted method means that the bigger companies in the index have a bigger impact on how the index performs. This is because their market value (the total price of all their shares) is higher. The performance of companies with a small market cap will have less of an impact on the overall index.
Market Cap calculation: token market price x total number of outstanding shares
Asset Availability
To be included in this index, a project must have liquidity and trading volume on Polygon DEXs deemed sufficient by our Quant team.
Index Rebalancing
The DeFi Value Index is re-balanced within the last 3 days of every calendar quarter to account for changes in the crypto market.
Rebalancing an index means rebalancing its asset composition. This is done to keep the index balanced and diversified, as the methodology originally planned.
Fees
- Performance fee: 0%
- Management fee: 3%
- Buy/sell fee: 0%
Resources
- Polygon Contract Address: coming soon
- dApp Link: coming soon
- Home Page Link: coming soon
Last modified 1mo ago
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