Tracking DeFi tokens have a lot of important benefits, at least that is what the CEO of Compass, Guillaume Le Fur has to say about the new service that they are providing.
According to cryptocurrency breaking news today the CEO of Compass Financial Technology, a fund management company that is in Switzerland has made the decision to provide a particular index that will help in allocating the important and efficient DeFi tokens in the best way.
According to Le Fur, with the incorporation of the important and fundamental metrics for the creation of the index, the investors and traders of cryptocurrency will definitely be provided with the chance to know what are the DeFi tokens are actually efficient and that too on the basis of the indicators of rational income.
“Incorporating fundamental metrics in index creation offers investors the possibility to allocate in the most efficient DeFi tokens based on rational economic indicators,” mentioned Compass Financial Technologies CEO Guillaume Le Fur.
The name of the index that has been launched by the Fund Manager based in Switzerland, Compass Financial Technologies is “Compass Crypto Basket Fundamental DeFi Index” or CCBFDEFI.
It is basically a particular index that has been used in order to track 10 Decentralized Finance or DeFi tokens in order to ensure that all the investors are properly provided with the chance to understand the efficiency and importance of the tokens in the first place.
This particular firm was founded in the year 2017 and ever since then, it has provided services as well as indices that were tailored to the different fields of cryptocurrency, multi-assets, commodities, as well as real estate.
Compass Financial Technologies is responsible for the management of about $5 billion when talking about the worth of the investment products that are related to the indices produced by the firm in the first place.
The CCBDEFI was launched live on the 22nd of February and this particular index was crucial in providing institutional exposure to a particular group that consisted of 10 different DeFi tokens that are weighted individually on factors such as market capitalization, liquidity, as well as the metrics for protocol revenue along with on-chain important data as well.
The maximum weighting that is provided for any particular token that is given is at 35% as well as the group of different assets that are selected every single month.
The firm has basically listed more than about 20 tokens that are approved that can properly be used as the components that are required for the index every single month that include names such as Compound or COMP, Aave or AAVE, UniSwap or UNI, along with SushiSwap or SUSHI.
Compass Financial Technologies CEO Guillaume Le Fur made an emphasis on the institutional appetite for crypto exposure is “growing significantly” as firms seek out ways to invest in the sector in a compliant manner:
“Incorporating fundamental metrics in index creation offers investors the possibility to allocate in the most efficient DeFi tokens based on rational economic indicators.”
The CCBFDEFI is live on the firm’s website along with Bloomberg and Refinitiv and is compliant with EU Benchmark Regulations (EU BMR). The product is also available for use under a license agreement with Compass Financial Technologies.
Compass Financial Technologies also partnered with top crypto fund manager CoinShares in late January to provide its indices for reference prices as part of CoinShares Physical Exchange-traded products (ETPs) which take zero management fees and offer staking rewards. In April last year, the firm launched a suite of EU BMR compliant crypto indices that covered areas ranging from reference prices to smart-risk control and volatility targets.