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Index Cooperative's DPI vs Alongside Crypto Market Index (AMKT)

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Index Cooperative's DPI vs Alongside Crypto Market Index (AMKT)

Cryptocurrency indexes are becoming increasingly popular as investors look to diversify their portfolios with alternative investments. The Alongside Crypto Market Index token (AMKT) and Indexcoop's DeFi Pulse Index (DPI) are two such crypto index tokens that offer investors the opportunity to gain exposure to the cryptocurrency market. While both tokens are designed to track the top cryptocurrencies, there are significant differences in the way they do so. In this post, we'll compare the two crypto index products to help investors evaluate which is best suited to their needs.

DeFi Pulse Index

Index Cooperative's most well-known offering is their DPI index. It is a weighted index that records the performance of a variety of DeFi assets. DPI is built using the Set Protocol, what this means in practice is that Index Cooperative can only use assets from the same blockchain (i.e. Ethereum) in each of their products. Indexcoop also offers other thematic tokens such as a metaverse index token as well as a leveraged liquid staking token.

This makes it very difficult to create a truly diversified index of cryptoassets, instead their products focus on thematic strategies within crypto. Index cooperative is a decentralized autonomous organization (DAO) governed through its governance token INDEX . Similarly to AMKT, DPI is fully collateralized and redeemable for its underlying assets.

Index Cooperative Token (INDEX)

INDEX is a governance token that allows token holders to vote for or against proposals on Snapshot. People can be rewarded with INDEX for contributing to the growth and sustainability of Index Cooperative and it can be bought on secondary crypto markets.

Similarities and differences of DeFi Pulse Index and the Alongside Crypto Market Index token

  • AMKT and DeFi Pulse index are both fully collateralized, however AMKT stores funds using secure Coinbase Custody whilst DPI uses smart contracts. By using Coinbase, AMKT can offer a broader array of assets than DPI.
  • DPI's methodology is focused on offering DeFi tokens, whilst AMKT is structured to track the whole cryptoasset market making total market exposure accessible.
  • Both products are tradable on-chain, mintable and composable.
  • Index Coop has its own governance token, whilst the AMKT DAO uses the AMKT index tokens to govern its index.

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