DeFi Indices
Index Methodology: The GROOT index, as an example, is an equally weighted index based on a basket of two digital assets with a base value of 100 at the same starting date. The closing price of the digital assets are at midnight UTC and based on a blended weighted average across various exchanges, weighted by the last 30 days number of transactions and average fair value (mid point between the ask and bid price). This uses the 30/360 convention and assumes every day has a closing price. Some indices use VWAP. Unlike traditional exchanges, digital assets are traded continously. The underlying digital assets tend to be those with small spreads, actively traded across at least 3 exchanges and with mature liquidity pool trading venues. Indices data points are useful for calculating risk factors such as volatility, beta, correlations and other KPI's like Sharpe and Sortino ratios. This is for illustrative purposes and is not to be used for benchmarking if in your jurisdiction there are laws governing the use of indices. We have been producing digital asset indices since 2017.
The raw data used to create these indices comes mostly from Binance, Mandala, Kraken, FTX, OKex, KuCoin, Bittrex,, Coinbase, CoinGecko, CryptoCompare, CoinMarketCap and Coinmetrics along with help from UNI, AAVE, MKR, COMPOUND, YEARN, SYNTHETIX, UMA, SUSHISWAP, 0X and many others.