1/ Index products in crypto are boring to us native folk because they are simply a volatility-minimized buy & hold vehicle and do not appeal to our “inner ape”.

But for “normies” - these products are exactly what they want to gain broad exposure to new sectors such as DeFi.

2/ Index products are huge in the TradFi space with companies like BlackRock and Vanguard having a combined AUM of over $13 trillion.

Most people simply buy index products like the S&P500 or NASDAQ because they just want easy exposure to certain sectors of the economy.

3/ Whenever I tell someone about DeFi they ask me how they can get broad exposure to the growth of the entire sector. I used to just say “buy ETH” but now I can tell them to also buy the @defipulse Index.

Buying an index is also a familiar experience for most investors.

4/ The beautiful thing about this is that every time new $DPI is minted, it takes all of the component tokens off the open market.

The $DPI is already one of the largest holders of $AAVE + $YFI & will continue to absorb more over time.

The $DPI is a black hole for DeFi tokens.

5/ The best part? People who buy index products tend to hold them for a longer time than those who buy individual stocks (or in crypto’s case, tokens).

This means that the $DPI is effectively taking a large chunk of its component tokens off of the market for potentially years.

6/ Disclosure: I work at @setprotocol - one of the main architects of the DeFi Pulse Index and one of the two parties who summoned the @indexcoop.

Buy DPI here: https://www.tokensets.com/portfolio/dpi 

Join the community here: https://discord.gg/WjvtZCZ 

*THIS THREAD IS NOT INVESTMENT ADVICE*