The DeFi Pulse Index (DPI) is a structured product designed to track the performance of decentralized finance (DeFi) tokens within the Ethereum ecosystem. It is an ERC-20 token that allows users to gain exposure to a diversified portfolio of DeFi projects through a single digital asset. DPI is a capitalization-weighted index, meaning that the value of each token in the index is based on its market capitalization.

1. Diversified Exposure:
   DPI provides a cost-effective way to hold a basket of popular DeFi tokens, making it easier for investors to diversify their portfolios without having to purchase and manage individual tokens.

2. Redeemable for Underlying Tokens:
   Holders of DPI can redeem their tokens for the underlying DeFi tokens that make up the index, similar to traditional ETFs. This feature is available on the TokenSets website.

3. Trading and Purchasing:

DPI can be bought and sold on various platforms, including centralized exchanges (CEXs), decentralized exchanges (DEXs), and directly from the Index Coop website. Popular wallets like Argent, Dharma, Metamask, and Rainbow can be used to purchase DPI with fiat currency.

4. Rebalancing and Inclusion Criteria:
   The index is rebalanced quarterly to ensure that the tokens included continue to meet the criteria, which includes market capitalization, user safety, and protocol traction. Tokens must be available on Ethereum, associated with a DeFi dApp, and meet specific supply and issuance requirements.

5. Community Involvement:
   The Index Coop community is involved in management decisions, and anyone can participate by joining their Discord channel.

6. Productive Use in DeFi:

DPI can be used productively throughout DeFi, such as in lending, borrowing, or yield farming, due to its status as a crypto-asset.

• Market Risk: DPI is subject to market fluctuations, and its value can decrease.
• Smart Contract Risk: As with any Ethereum-based token, DPI is vulnerable to potential smart contract exploits or bugs.
• Infrastructural Risks: Illiquidity can occur during periods of high network congestion, affecting the token's liquidity.

Overall, DPI offers a convenient and diversified way to invest in the DeFi sector, but it is essential to understand the associated risks and consider them when making investment decisions.

To store DeFi Pulse Index (DPI) tokens, you can use various Ethereum-compatible wallets. Here are some popular options:

1. Software Wallets:

   • Argent: A user-friendly wallet that allows you to connect to your bank account or debit card for direct fiat-to-crypto purchases.
   • Dharma: A wallet that supports direct fiat purchases and offers a simple interface.
   • Metamask: A widely used wallet that integrates well with DeFi applications.
   • Rainbow: A wallet that supports fiat purchases and offers a user-friendly interface.

2. Decentralized Exchanges (DEXs):

   • Uniswap: A popular DEX where you can buy, sell, and store DPI tokens.
   • Sushiswap: Another DEX that supports DPI token transactions.

3. TokenSets:

• TokenSets Site: You can redeem your DPI tokens for the underlying tokens at any time on the TokenSets site.

4. Hardware Wallets:
   • Ledger: A secure hardware wallet that supports Ethereum and ERC-20 tokens like DPI.
   • Trezor: Another popular hardware wallet that supports Ethereum and ERC-20 tokens.

When choosing a wallet, consider factors such as security, ease of use, and compatibility with DeFi applications. Always conduct due diligence and ensure the wallet you select is reputable and secure to protect your DPI tokens.

To buy DeFi Pulse Index (DPI) tokens, follow these steps:

1. Choose a Wallet: Select a reliable crypto wallet that supports DPI, such as Trust Wallet, Argent, Dharma, Metamask, or Rainbow. Download the wallet app or browser extension and set it up, ensuring you keep your seed phrase safe.

2. Buy Ethereum (ETH): Purchase ETH on a centralized exchange like Binance, Coinbase, Bitfinex, Gemini, Bitstamp, Kraken, or KuCoin using a credit/debit card or bank transfer.

3. Transfer ETH to Your Wallet: Withdraw the purchased ETH from the exchange to your crypto wallet, making sure to set the network to Ethereum and providing your wallet address.

4. Select a Decentralized Exchange (DEX): Choose a DEX that supports DPI and your wallet, such as 1inch, Uniswap, or Sushiswap.

5. Connect Your Wallet to the DEX: Use your wallet address to connect to the chosen DEX.

6. Swap ETH for DPI: Select ETH as the payment and DPI as the coin you want to acquire. If DPI doesn’t appear, find its smart contract address on Etherscan and paste it into the DEX.

7. Complete the Swap: Click the Swap button to complete the transaction.

Alternatively, you can also buy DPI directly on some centralized exchanges like eToro and Crypto.com, or through Index Coop or TokenSets.