Plenty of cryptocurrency enthusiasts are looking to enter the DeFi space. Exploring the different projects and acquiring the necessary assets can be a hassle. The new sDeFi token seems to offer an elegant solution to gain exposure to everything.
What is sDeFi Exactly?
Unlike other tokens in the DeFi space, sDeFi serves as an actual DeFi “index”. Holding this token provides users exposure to a dozen different tokens and how their prices are evolving. It is a convenient way to get in on the action without having to jump through dozens of hoops.
At its core, the sDeFi index tracks a basket of tokens selected by the Synthetix community. This also means that the tokens being tracked, as well as their overall weighting, may be subject to change in the future. As the decentralized finance sector keeps growing and evolving, there will undoubtedly be some changes on the horizon.
— Synthetix ⚔️ (@synthetix_io) August 17, 2020
Currently, the sDeFi token provides exposure to all popular DeFi tokens The list spans COMP, MKR, KNX, SNX, LEND, REN, BAL, and several others.. It is interesting how neither ChainLink, Swipe, or KAVA is on the list at this time. They may be introduced later on, albeit it depends on the Synthetix community.
Where to buy sDeFi
Obtaining this new token may pose a few challenges along the way. Users need to purchase sUSD – tokenized US Dollars on Synthetix – with another stablecoin. This process occurs on the Curve.fi platform. Once this step is completed, users can purchase sDeFi on the Synthetix Exchange.
Do keep in mind this is a token representing a basket of DeFi tokens. Its current price is rather steep, all things considered. Purchasing one sDeFi costs over $4,200 at the time of writing. The overall success of this token remains unclear. At this price, and with the current DeFi craze, there may be some interest in it.
Investing in index tokens is always a risk. its value heavily depends on the overall performance of the underlying assets. Compound’s native token is currently the biggest risk factor for investors. Its value has shifted around wildly in recent weeks.
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