Sun Zu Lab, a leading provider of quantitative research on liquidity, has produced the second report on the liquidity of Trakx Top 10 DeFi. The overall liquidity of the index as well as the index constituents have been analysed, through measures of capacity and slippage.
Top 10 DeFi gives investors an exposure to the biggest DeFi projects by market capitalisation by simply buying a single token. Investors get a broad exposure to this rapidly growing industry through a selection of varied core DeFi protocols (Dex, NFT, Lending….).
Liquidity is a measure of the ease at which an asset can be bought or sold without affecting its price. Deep liquidity shown in this Sun Zu report (May 2021) means that institutional investors trading Top 10 DeFi were able to enter and exit positions with ease.
The full paper is available here.