Binance, the global blockchain company, and popular crypto-asset exchange company, today announced a new DeFi composite index line of perpetual contracts. Listed on Binance Futures, the contracts are denominated in USDT and with leverage of up to 50x.
This is Binance’s first such composite index derivatives product, allowing users to more easily track the fast-growing DeFi market.
The USDT-margined DeFi index represents a composite of decentralized finance protocol tokens listed on Binance, and is calculated using weighted averages of real-time prices of the tokens on Binance. The index will comprise the following DeFi protocols:
- BAND, Band Protocol
- LINK, Chainlink
- COMP, Compound
- MKR, Maker
- KAVA, Kava.io
- SNX, Synthetic Network Token
- KNC, Kyber Network
- SXP, Swipe
- LEND, Aave
- ZRX, 0x
“Binance Futures has been at the forefront of developing new products for users, and we now offer nearly 50 futures pairs, the most in the market by quantity and variety. Response to our range of DeFi derivatives has been continuously positive and it is clear that there is growing demand. We are excited to offer the USDT DeFi Index that enables users to more easily access DeFi and further diversify how they trade,” said Aaron Gong, VP of Binance Futures.
The index’s composite of tokens and their weighted averages are rebalanced regularly each week, using data from Coin Market Cap to reflect market conditions including capitalization and volume. This helps users capture trends in the DeFi sector and is similar to how conventional index futures are designed.
“As innovators of our ecosystem, we are always thinking and building strategically to improve adoption and benefit our users. Our USDT DeFi Index combines ease of exposure to the blooming range of DeFi projects with the familiarity and popularity of a traditional product. This is a step forward in how cryptocurrencies can be utilized as well as boosting the important DeFi sector,” said Changpeng Zhao (CZ), Founder and CEO of Binance.