Index Coop builds decentralized structured products that make cryptocurrency simple, accessible and secure.
Comprehensive Range of DeFi Products
Index Coop has developed several indices and products that cater to various aspects of the digital finance space:
- DeFi Pulse Index: This product is a market-cap-weighted index that monitors the performance of leading DeFi assets. It provides a comprehensive overview of the decentralized finance sector by focusing on projects that are actively used and maintained.
- Metaverse Index: Targeting the burgeoning sector of virtual environments, this index captures the economic activities within digital realms like entertainment and business, all of which are increasingly migrating to platforms supported by the Ethereum blockchain.
- Index Coop Large Cap Index (ic21): Offering a diversified portfolio, this index includes top-tier crypto projects. It utilizes a square root market cap weighting system and incorporates several non-EVM-native assets through fully collateralized wrapped tokens.
- Bankless BED Index: In collaboration with Bankless, Index Coop manages this set which equally weights significant crypto assets such as BTC, ETH, and DPI. This index provides a balanced exposure to the core themes of crypto, including store of value and programmable money.
- High Yield ETH Index (hyETH) and Interest Compounding ETH (icETH): These indices focus on maximizing returns from ETH holdings by tracking high-yield opportunities and enhancing staking returns through leveraged strategies, respectively.
- Diversified and Gitcoin Staked Ethereum Indices (dsETH and gtcETH): These products invest in leading Ethereum liquid staking tokens, emphasizing decentralization and supporting public goods through contributions to Gitcoin.
Leveraging Innovations: The Index Coop Leverage Suite
The Index Coop Leverage Suite is a revolutionary offering that simplifies the process of leveraging investments. This suite provides automated tokens that utilize Aave V3 for leveraging strategies, ensuring built-in liquidation protection and maintaining low and transparent fees. Unlike perpetual futures, which rely on synthetic leverage, Index Coop’s leverage tokens are fully collateralized by the underlying assets, offering a secure and straightforward approach to achieving desired leverage levels.
Fee Structure and Economic Considerations
Index Coop implements a clear fee policy where 1x and 2x leverage products incur an annual fee of 3.65%, and 3x products are charged at 5.48%. All products also carry issuance and redemption fees of 0.10%. The dynamic costs associated with asset utilization within Aave, such as the Cost of Carry, require users to stay informed about the interest rates to manage their investments effectively.
Governance and Community Engagement
The governance of Index Coop is facilitated through the INDEX token, which empowers holders to vote on various proposals. These can range from launching new products to adjusting existing ones, and from allocating treasury funds to participating in third-party protocol governance. This level of community involvement ensures that the DAO remains aligned with the interests and needs of its members.
