Smart contract platform Solana and decentralized exchange Uniswap have been added to the Grayscale Digital Large Cap Fund
Grayscale Investments, the world’s largest digital currency asset manager, and manager of both Grayscale Digital Large Cap Fund and Grayscale DeFi Fund, announced the updated Fund Component weightings for each product in connection with their respective quarterly reviews.
In accordance with the Digital Large Cap Fund’s construction criteria, Grayscale has adjusted the Digital Large Cap Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Solana (SOL) and Uniswap (UNI). This announcement follows the July 2021 news that Grayscale adjusted the Digital Large Cap Fund’s portfolio and purchased Cardano (ADA), and is the first time Solana (SOL) will be included in a Grayscale investment vehicle.
Solana
SOL is the native token of the Solana network, a smart contract platform first conceived by Anatoly Yakovenko in a 2017 whitepaper. Like the Ethereum network, the Solana network is one of a number of projects intended to expand blockchain use beyond just a peer-to-peer money system. The Solana protocol introduced the Proof-of-History (PoH) consensus mechanism as an alternative to pure Proof-of-Stake (PoS) and Proof-of-Work (PoW) blockchains like Ethereum. PoH is intended to provide a transaction processing speed and capacity advantage over traditional PoW and PoS networks, which rely on sequential production of blocks and can lead to delays caused by validator confirmations.
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Uniswap
UNI is the native token of the Uniswap network, a decentralized exchange originally conceived in 2016 by Vitalek Buterin, the creator of Ethereum, and later developed in 2018 by Hayden Adams and Uniswap Labs. Uniswap enables trading of digital assets without a central order book by aggregating digital asset trading pairs using smart contracts. On Uniswap, users exchange digital assets with one another by paying a transaction fee to independent market makers called liquidity providers. Holders of UNI have the ability to propose and vote on improvement proposals to adjust features of the Uniswap network.
At the end of the day on October 1, 2021, the Digital Large Cap Fund’s Fund Components were a basket of the following assets and weightings.
- Bitcoin (BTC), 62.19%
- Ethereum (ETH), 26.08%
- Cardano (ADA), 5.11%
- Solana (SOL), 3.24%
- Uniswap (UNI), 1.06%
- Chainlink (LINK), 0.82%
- Litecoin (LTC), 0.77%
- Bitcoin Cash (BCH), 0.73%
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No new tokens were added or removed from the DeFi Fund. At the end of the day on October 1, 2021, the DeFi Fund’s Fund Components were a basket of the following assets and weightings.
- Uniswap (UNI), 45.20%
- Aave (AAVE), 14.11%
- MakerDAO (MKR), 7.84%
- SushiSwap (SUSHI), 7.18%
- Compound (COMP), 6.73%
- Synthetix (SNX), 6.29%
- Yearn Finance (YFI), 3.92%
- Curve (CRV), 3.53%
- Bancor Network Token (BNT), 3.04%
- UMA Protocol (UMA), 2.16%
Neither the Grayscale Digital Large Cap Fund nor the Grayscale DeFi Fund generate any income, and both regularly distribute Fund Components to pay for ongoing expenses. Therefore, the amount of Fund Components represented by shares of each fund gradually decreases over time.
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