Index Token Rebasing

DiversiFi index tokens are rebasing ERC20 tokens. What that means is that the monetary base of the token can be changed. For example, if the index token rebases downward by 50%, then the token balances of all holders will be multiplied by 0.5. DiversiFi index tokens can only be rebased downwards (i.e. balances are decreased.)

Under normal circumstances rebasing will never occur, only in extreme circumstances where the token has lost its peg due to an underlying asset failure and there are no means of regular recovery to parity with the index. For this reason it is generally safe to use DiversiFi index tokens in DApps that regularly would not support rebasing tokens. Users who do this will have to remain vigilent however and remove their index tokens from unsupported protocols if a rebasing does occur. Warning before a rebasement will always occur far in advance so most users should have time to prepare.