The DeFi Pulse Index (DPI) is a cryptocurrency index token that represents a diversified portfolio of decentralized finance (DeFi) tokens.
It is designed to give investors exposure to a broad range of DeFi projects and assets through a single token. The DeFi Pulse Index is often used as a way to track and invest in the DeFi sector as a whole.
The DPI is composed of a carefully selected basket of DeFi tokens that are weighted based on their market capitalization and liquidity. The composition of the index is periodically reviewed and adjusted to reflect changes in the DeFi market. It typically includes a mix of tokens representing various DeFi protocols, such as lending, decentralized exchanges, yield farming, and more.
The DeFi Pulse Index is governed by a decentralized autonomous organization (DAO) called the Index Cooperative. Token holders who own the governance token, INDEX, have voting power and can participate in decisions related to the index, including its composition and methodology.
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Source: https://coinidol.com/the-defi-pulse-index-dpi-token/