Introducing The Chainlink DeFi Yield Index (CDY Index)

The Chainlink DeFi Yield Index (CDY Index) is a newly introduced data product designed to aggregate market-wide lending rates in decentralized finance (DeFi) using Chainlink's decentralized oracle networks. As DeFi lending has grown to lock in approximately $47 billion by January 2025, the need for a clear and reliable index like the CDY Index has become apparent to help traditional financial institutions evaluate onchain investment opportunities. The Index leverages Space and Time's blockchain indexing and database technology to calculate real-time data, aiming to improve capital efficiency, transparency, and liquidity in DeFi lending markets. Chainlink's established reputation for secure and accurate data aggregation positions it well to construct such an index, which is initially focused on major crypto markets such as USDC, USDT, Wrapped BTC, and Wrapped ETH. This index not only aids financial institutions in discovering new yield opportunities but also supports DeFi protocols in enhancing market transparency and generating innovative investment solutions, ultimately benefiting both users and the broader DeFi ecosystem.