Concept

Token DeFi (TDEFI) is a token basket that consists of the cryptocurrencies of leading and promising decentralized finance (DeFi) projects, protocols, and applications. It is a thematic token basket that capitalizing in its functioning and performance on multiple cryptocurrencies. A token basket (also, crypto basket) is a bundle of crypto assets (and tokens) designed to provide diversification, manage risk and simplify crypto/ token investing. Token baskets allow crypto investors to purchase and hold a basket consisting of multiple coins and tokens that operates as a single token. Baskets are traded as such for the purpose of diversifying token portfolios and managing their various risks (particularly, the risk of concentration or exposure to one token class).

Creation

Token DeFi is created by combining a set cryptocurrencies of leading decentralized finance projects selected based on promising prospects. DeFi is a blockchain-based and -operated financial system where users and other market players can conduct transactions (trades, transfers, exchanges, etc.), in a direct way, and without intermediaries, involving tools such as smart contracts. Decentralized finance (DeFi) is a broad term for the universal system of blockchains and all applications that operate there in order to allow users to transact directly with each other using cryptocurrencies such as Bitcoin and other certain types of digital tokens. Construction and addition of the basket components depends on certain factors (determinants) including trends in the world of decentralized finance, token liquidity, sustainable token economics, as well as multiple technical and fundamental indicators or variables.

Purpose

A token is a representation of an on-chain or off-chain asset. The basket (token DeFi) is created as per certain weights of component tokens, that can be invested and traded as one unit. Token basket trading allows token holdings diversification in the sense that investors can track a collection of individual tokens in a single basket. With that mechanism, investors can ensure that their portfolios are well tracked and diversified, with the possibility of gaining higher returns and spreading out the accompanying risks. For retail investors and new entrants, token baskets represent an easy way to construct and track their token/ crypto portfolio.