The evolution of DeFi Pulse Index

Decentralized finance (DeFi) is a nascent sector in crypto that unleashes the power of smart contract-enabled blockchains, with more than $200 billion worth of assets locked in DeFi protocols.

Many investors seek exposure to the DeFi market, as the DeFi dominance in crypto is still small albeit non-negligible. But given a sea of DeFi protocols and products available today, together with incalculable smart contract risks associated, diversification is key to investing in DeFi as a whole. For instance, a recent erroneous smart contract update in the Compound protocol mistakenly released unusual amounts of COMP tokens as rewards to be claimed, leaving $80 million in COMP at risk. The token price took a hit due to the unexpected sell pressure.