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🪙 A Complex Yield Strategy in a Single Token 🪙 | August 10th Newsletter
🪙 A Complex Yield Strategy in a Single Token 🪙 | August 10th Newsletter
We’re diving deeper into our newest token — Market Neutral Yield ($MNYe).
8/9/2022
Index Coop
Content
🪙 A Complex Yield Strategy in a Single Token 🪙
August 10th Newsletter
Hi, there! This week, we’re diving deeper into our newest token — Market Neutral Yield ($MNYe). Product contributor @Joseph_Knecht_ breaks down how MNYe automates a continuous basis trading strategy that returns a price-neutral yield to holders. Next, we’ll discuss the L2 blockchain that powers MNYe, Optimism. Learn about the basics and benefits of this Ethereum scaling solution. Lastly, we’ve launched the Flash Mint SDK. Learn how Flash Mint helps dApps and DEXs reduce slippage and unlock cost savings for users making large trades.
-@thekindeagle and the Index Coop team
PRODUCT NEWS
🪙 Complex Yield Strategy in a Single Token 🪙
Who says that sophisticated yield-bearing strategies need to be complicated? The Market Neutral Yield ETH (MNYe) token from the Index Coop automates a continuous basis trading strategy that returns a price-neutral yield to token holders. Not sure what that means? In short, MNYe contains a fully-hedged ETH position, with equivalent spot exposure and short exposure via perpetuals. Token holders earn a variable USDC return when the funding rate is positive.
PRODUCT NEWS
⚡️Flash Mint Is Here & Ready For Integration⚡️
The Index Coop is pleased to introduce the Flash Mint SDK, which provides support for dApps and exchanges looking to easily integrate mint and redeem capabilities for crypto structured products, such as DeFi Pulse Index (DPI) and Interest Compounding Ethereum (icETH).
Integrating Flash Mint provides many benefits not only for developers but also for crypto users. The ability to Flash Mint tokens reduces slippage and unlocks cost savings on large trades. The Flash Mint SDK is written in TypeScript, and is available now on GitHub.
INDEX PRODUCTS
✨🔴 Feeling Optimistic About L2s? 🔴✨
Market Neutral Yield ETH (MNYe) is Index Coop’s first token built on Optimism. Optimism is a layer 2 chain that functions on top of Ethereum mainnet (layer 1). Transactions take place on Optimism, but the data about transactions get posted to mainnet, where they are validated.
This L2 rollup inherits the security of Ethereum, but transactions are both cheaper and faster. Finematics provides a great video overview and visuals of how Optimism works.
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FAQs
Index Coop yield tokens simplify earning yield in DeFi by automating complex strategies and diversifying across protocols. They are user-friendly and cost-efficient, appealing to both new and seasoned DeFi users.
Leverage tokens automate a leveraged position by utilizing onchain money markets like Aave or Morpho to borrow funds, amplifying a user's exposure to an asset without requiring manual management. The token's smart contracts autonomously handle the borrowing, lending, and rebalancing of assets, maintaining a consistent leverage ratio despite market fluctuations. This automation eliminates the complexities of collateral management and liquidation risks, while also charging low, transparent fees that avoid expensive funding rates often charged by perps.
Index Coop is a decentralized autonomous organization (DAO) that specializes in creating and maintaining onchain structured products. Index Coop aims to democratize access to the crypto market, empowering everyone to participate in the growing digital asset ecosystem with ease.
No, yield automatically compounds and accrues to the token price. The value of the tokens you hold in your wallet will simply go up over time without the need to claim or compound rewards.
Index Coop products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
INDEX is the ERC-20 governance token on Ethereum for Index Coop. INDEX empowers its holders to participate in decision-making processes that shape the future of Index Coop.
Yes, all Index Coop products are instantly redeemable for their underlying value at all times.
Yes, all Index Coop smart contracts have been audited by leading independent security firms such as OpenZeppelin, ABDK, Isosiro, & more. There is also an active bug bounty program through ImmuneFi. Audit information is published in the docs here.
Streaming fees (an annual fee paid continuously block-by-block), mint and redeem fees (only on leverage tokens), and borrow costs (interest paid to borrow funds from onchain markets when using leverage).