Introduction

With the introduction of Protocol 20 of Stellar, new Smart Contract based Descentralized Protocols have arised in the Stellar Blockchain. Automated Market Makers like Soroswap.Finance, or Lending and Borrowing protocols like Blend Capital are just the beggining of a new set of DeFi Protocols.

These protocols allow from simple to complex investment stragtegies. The most simple strategy can be holding assets, other simple strategies can be investing in a Soroswap.Finance AMM Constant Product Liquidity Pool. Also, a more complex strategy can be lending USDC in a Blend Market, harvest the BLND reward to later swap those BLND harvested to USDC and reinvest them in the lending pool.

However, this is very time consuming and requires a lot of knowledge about the protocols and strategies. From one side, a crypto investor would need to spend a lot of time learning about the protocols and strategies, and then, would need to manually manage their investments. From another side, it's just too complex for non-expert users, or even for wallets users that prefer a very simple interface.

That's why DeFindex was created. DeFindex is a protocol where users can define how their investments are distributed among multiple DeFi protocols and strategies. The definition of this distribution and its rules involves the creation of a vault, which works like an index fund or an ETF, where the underlying assets are invested in DeFi protocols.

This is particularly useful for wallets users (even web2 users) that prefer a very simple interface, where wallet builders can integrate DeFindex in their wallets, to offer a DeFi investing service to their users. Also, for expert users that prefer to have a very easy way to diversify their investments among multiple protocols and strategies.

We want to make DeFi investing easy, simple and accessible for everyone!

In this whitepaper we will explain core concepts to understand DeFindex. Then, design decisions, how it works, which contracts are involved, the current state of the art.