The anatomy of market manipulation in DeFi

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DeFi

Written by Adam Morgan McCarthy , Dessislava Aubert

27/02/2025

    Welcome to the index in focus!

    Welcome to the Index in Focus! This week, we’re analyzing the Kaiko DeFi Index (KSDEFI), part of our family of sector-based indices. The Kaiko Indices DeFi Index provides strong sector exposure while diversifying across key growth verticals. In this report, we explore:

    • Index design and returns

    • Outperforming benchmarks

    • Individual catalysts drive returns

    Introduction

    The Kaiko DeFi Index (KSDEFI) consists of 11 different digital assets. The index includes projects from across the sector, covering decentralized exchanges, tokenization, lending and borrowing, and other key components of DeFi.

    This index allows investors to track the sector’s growth over time. In this report, we analyze the index’s constituents, investment thesis, diversification benefits, and historical returns.

    Although most protocols and projects in the index are built on Ethereum, its returns are not solely dependent on Ethereum’s performance.

    Catalysts for growth

    Any continued outperformance for the Kaiko DeFi index will be tied to individual catalysts for constituent assets. Projects that could drive returns in 2025 include UNI, AAVE, AERO, and ONDO. While these are some of the most likely to benefit from strong investment narratives in 2025, growth shouldn’t be limited to these four assets.

    Learn more about these catalysts and explore the full report below.

    Download the Report.

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