PieDAO, a decentralized asset manager for tokenized portfolios governed by a network of financial experts, announced today a strategic partnership with cross-chain synthetic asset protocol Linear Finance, to create a synthetic token comprising both its large and small-cap decentralized finance index funds, DeFi+L and DeFi+S.
The new token, LDEFI, will give investors exposure to a wide variety of DeFi tokens without the need to hold the underlying assets. This mutually beneficial collaboration combines PieDAO’s carefully researched index methodology with Linear Finance’s Linear.Exchange to list the upcoming synthetic token, amplifying portfolio diversification and bringing users’ favorite cross-chain DeFi index.
LDEFI is set to list on June 17th, allowing token holders to collectively invest in DeFi tokens including Chainlink’s LINK, Maker (MKR), Aave, Uniswap’s UNI, Yearn.finance (YFI), Compound’s COMP, Synthetix (SNX), and SushiSwap (SUSHI). Plus projects including UMA, Ren, Loopring (LRC), Balancer (BAL), pNetwork (PNT), and Enzyme (MLN). This community-curated mix exposes investors to a wide range of protocols including decentralized stablecoins, derivatives, price oracles, and layer-2 scaling solutions.
The new synthetic token mirrors the price action of an existing PieDAO index, Defi++, and consists of 70% large-cap and 30% small-cap portfolios — an example of modularity and composability brought by DeFi.
Users will be able to access the PieDAO-managed portfolio on the Binance Smart Chain and soon Polkadot; all while being able to trade in and out of portfolio positions at a low cost without slippage and liquidity limitations due to Linear Finance’s protocol architecture.
“Synthetic assets have traditionally brought newfound flexibility to investors looking to make investments without holding the underlying asset. We take flexibility a step further with DeFi elements by tokenizing different kinds of assets; bringing the ability to invest in multiple asset classes on a single platform. We are aiming to eliminate traditional barriers to entry like time, money, and expertise so users can start participating in DeFi without any fears or hesitations.”
– Kevin Tai, Co-Founder of Linear Finance
Managed by PieDAO
The synthetic index token will be composed, maintained, and managed by PieDAO’s growing decentralized community; which includes the core members of projects such as Synthetix, Compound, and MakerDAO. The community will be responsible for curating the LDEFI token, deploying strategies, and sharing monthly data sets ahead of regular “Pie” (digital asset portfolio) rebalancings.
“Defi++ is truly the most diversified and yield-bearing index in the market, setting the industry standard for all forthcoming DeFi asset allocations. And now, with the development of the new synthetic LDEFI token on Linear.Exchange, we’ve eliminated liquidity issues for users too. The Linear Finance team champions PieDAO’s unique diversification methodology that stems from weeks of community research and discussion; and we’re thrilled to continue on our mission to bring automated wealth creation to all with a fantastic partner by our side.”
– Alessio Delmonti, a contributor at PieDAO
Recently, PieDAO collaborated with NFTX to expand its diversified investment portfolios to include a new Ethereum gaming and metaverse index, Play. The index token enables investors to get exposure to a tokenized basket of nonfungible index tokens. Moving forward, PieDAO will look to bring other synthetic versions of assets to Linear Finance’s asset protocol.