The rise of decentralized index funds (DeFi Index Funds) offers a new approach to portfolio management by leveraging blockchain for diversified, transparent investments. These funds track crypto assets via smart contracts, reducing fees and central oversight. Index Coop provides community-driven index products like DPI, while PieDAO offers market-weighted portfolios. Their investment value lies in accessibility and growth potential within DeFi’s expanding ecosystem. However, volatility and regulatory risks persist. As DeFi matures, these projects could attract institutional interest, enhancing their long-term prospects.