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Index funds have been gaining traction in the DeFi space, offering a diversified approach to investing in cryptocurrencies. DeFi Pulse Index, for instance, is a collection of DeFi assets that tracks the performance of leading DeFi tokens. Similarly, PieDAO has created a range of index funds, known as "pies," which allow investors to gain exposure to various crypto sectors with a single transaction. These index funds aim to provide stable returns and reduce the risk associated with investing in individual tokens, making them an attractive option for those looking to participate in the DeFi ecosystem.