How to Gain ETF-Like Exposure in DeFi by Defi Dad

In April 2020, a new DeFi team called PieDAO launched a new DeFi offering similar to an ETF (exchange traded fund). In traditional finance, an exchange-traded fund (ETF) is a popular type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold throughout the day on stock exchanges.

Pie smart pools are managed by Balancer which enables up to 8 tokens with weighted allocations in a single pool. PieDAO governs the readjustment of weights and removal/adding of tokens. Providing liquidity to one of these Pies gets you tokenized exposure to the underlying assets and additionally generates market-making fees from the Balancer ecosystem utilizing the liquidity in these pools to perform token swaps.

Currently, there are 3 Pies available at pools.piedao.org (buying routes you back to Balancer):

DEFI+S offers diversified exposure to the following small-cap DeFi related tokens on Ethereum.

BTC++ offers diversified exposure to the following tokenized BTC on Ethereum.

USD++ offers diversified exposure to the following stablecoins listed below on Ethereum.

How to Add Liquidity, Stake, and Earn Rewards with PieDAO

60,000,000 DOUGH v2 tokens, which is 60% of the total supply of governance tokens for voting on tokens/weights of Pies in PieDAO, will be locked in a vault out-of-circulation and assigned to the DAO to promote its