News & Resources

Aquanow is Pleased to Announce the Launch of its DeFi Funding Rate Index

May 6, 2022

Click here to download the Aquanow DeFi Funding Index and Rate White Paper

We are pleased to announce the launch of the Aquanow DeFi Funding Index (ADFI) and Rate (ADFR) as new benchmarks available on the Bloomberg terminal. As institutional adoption of digital assets grows, more sophisticated tools are required to effectively communicate sources of risk and return. These yardsticks are the latest in Aquanow’s suite of solutions to help institutions operate in the digital economy. The Index and Rate are liquidity-pool-value-weighted composites designed to measure the performance and state of major decentralized lending protocols. By capturing an aggregate yield of stablecoin lending to selected DeFi pools the standards can be used in performance attribution for active investment funds, spread analysis and more. As the time series grows, it will be interesting to evaluate trends and compare funding rates in decentralized pools against traditional marketplaces over the course of economic cycles.

To learn more about some potential use-cases for these innovative benchmarks, including how they might have informed market participants that trouble was brewing at the Anchor protocol (UST/Luna), click here.