Decentralised Finance (DeFi) is an open-source and transparent financial service ecosystem that represents a broad category of applications built on decentralised networks. Some of these products and services include decentralised marketplaces & exchanges, asset issuance, insurance, checking accounts, investment services, borrowing and lending, asset management and prediction markets.
BNC Blue-Chip DeFi ETP (Exchange Traded Portfolio) is a physical representation of the BNC Blue-Chip DeFi Index, issued on Balancer Protocol. The ETP mimics the constitution and weights of the index. It is rebalanced in alignment with the index, providing traders an opportunity to get non-synthetic exposure to the assets that are made up of the index, and/or speculate on arbitrage between the price parity of the index-powered perpetual swaps and the spot market for ETP.
BNC Blue-Chip DeFi Index tracks the real-time market performance of the largest DeFi assets. Launched in Sep 2020, this institutional-grade index is the first in the world to track DeFi assets across multiple pricing sources, at sub-second frequency. The index has a maximum basket size of 8 assets and is rebalanced quarterly based on a free float market capitalisation weighting with a cap of 25%.
BNC Blue-Chip DeFi ETP is exactly like the index, but physically holds onto the underlying assets in a non-custodial way, powered by Balancer.