CME, CF, to Launch DeFi Benchmarks
Posted by Colin Lambert. Last updated: December 2, 2022
CME Group and CF Benchmarks have unveiled plans to publish three new DeFi reference rates and real-time indices from December 19.
The rates, which will be calculated and published daily by CF Benchmarks will not be tradeable futures products, but will provide data for Aave, Curve and Synthetix. “”These three new benchmarks, together with Uniswap launched earlier this year, will capture more than 40% of the total value locked in DeFi protocols on the Ethereum blockchain,” says Giovanni, Vicioso, global head of cryptocurrency products at CME. “Additionally, these rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”
Initially, Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital, will provide pricing data for the new benchmarks, and each coin will trade on a minimum of two of these constituent exchanges to qualify. The rates will be published daily at 4pm London time.
“This is a natural progression for the CME CF benchmark family,” says Sui Chung, CEO of CF Benchmarks. “Investors have access to a growing range of pricing indices that provide exposure to new verticals within the cryptocurrency asset class. DeFi protocols provide users with direct access to financial services and products built on open-source technology, with the associated tokens increasingly relevant as Web3 continues to gain adherents.”