What Is DiversiFi?
DiversiFi is an index investing app built on Solana that allows users to get exposure to curated baskets of tokens through a single position. Instead of manually picking assets and rebalancing portfolios, DiversiFi packages tokens into structured indexes that represent specific themes, sectors, and strategies within the Solana ecosystem.
DiversiFi is currently in private beta. To use the application while in this test phase, request access on the homepage and fill out the form. An admin may send an access code through Telegram.
Index Investing in Crypto
Market narratives in crypto rotate just like in traditional finance. This means that the liquidity across assets shifts between sectors in the ecosystem. But since managing assets and reallocating one’s portfolio manually can be exhausting, DiversiFi grants its users diversified exposure with just one transaction that provides structured strategies without active trading.
How DiversiFi Works on Solana
When a user buys into an index from the list available, DiversiFi allocates funds across the underlying tokens according to predefined weights. The price of an index token is derived by dividing the total value locked (in USDC) by the total supply of the index tokens. DiversiFi also makes use of auto-rebalancing in its index mechanism. With automatic rebalancing, the vault keeps the mix of tokens near the intended percentages. So if one coin pumps and becomes too big in the basket, it will sell a bit of that coin and buy more of the ones that fell behind to get back to the target weights, so that no manual work is needed from the user.
Indexes are named to reflect the type of tokens they are composed of. The Boomer Index is made up of generally stable assets such as BTC, Gold and SyrupUSDC (a yield-bearing USDC). The DeFi Index consists of tokens used in the top DeFi protocols on Solana, such as Kamino and Drift, while Bonk Ecosystem holds tokens that are involved with the Bonk token ecosystem.
Purchasing an index token is as simple as selecting any of the indexes of interest in the “Indexes” page. In the example below, I chose the Bonk Ecosystem index. The index comprises Bonk, BERN, GP, ART and MF tokens. To purchase the token, click on Deposit and input the value.
DiversiFi provides a dashboard under the section “Positions” for monitoring all the index assets held in a wallet. All important details regarding the index assets owned, such as initial investment, amount withdrawn, balance and PnL numbers, are displayed. All the index tokens in the wallet can be managed from this page.
To sell the token, select “Withdraw” and input the amount to sell. By clicking the withdraw button, DiversiFi converts the token to its USDC equivalent and sends it to the wallet.
Conclusion
Index protocols like DiversiFi are significant products built on Solana to improve trading and investment in ecosystem tokens. Although still in private beta, DiversiFi makes it easy for Solana users to trade onchain ETF-like assets from traditional finance.
