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đź’¸ A guide to earning yield in crypto đź’¸ | June 15th Newsletter
đź’¸ A guide to earning yield in crypto đź’¸ | June 15th Newsletter
đź’¸ A guide to earning yield in crypto đź’¸
6/14/2022
Index Coop
Content
đź’¸ A guide to earning yield in crypto đź’¸
June 15th Newsletter
Hi, there! It’s been a tough week in the crypto markets. During times like these, be sure to take time for yourself and to nurture the relationships that truly matter. At Index Coop, addressing product questions with transparent, helpful answers is core to who we are as a DAO. This week we surface opportunities and a few icETH scenarios for investors from now until the merge. Also, have you wondered how DeFi protocols earn yield? We’ve got an in-depth article that breaks down the different ways passive income can be earned in crypto. Finally, there are some key benefits to buying on-chain structured products. Today, we’ll highlight a few advantages over off-chain crypto index funds.
-@thekindeagle and the Index Coop team
PRODUCT NEWS
🧊 Opportunities & answers for icETH investors 🧊
Recent market conditions have led to a sustained deviation between the prices of Lido Staked Ether (stETH) and Ether (ETH). Since stETH is the core component of Interest Compounding ETH Index (icETH), this has resulted in an impact on the price of icETH. While less ideal in the short term, the lower price of icETH does provide a potential arbitrage opportunity. Check out our in-depth article to understand the current pricing of icETH as well as potential future scenarios for investors.
DEFI EDUCATION
💸 Investor’s Guide to Earning Yield in Crypto 💸
Where does passive DeFi income come from? Is it sustainable? How are they able to beat the interest rates of my bank? If something appears to be too good to be true, it probably is. So it's important to have a curious mind and truly understand answers to these questions before going too far down the rabbit hole. Learn about all the different ways you can earn a sustainable yield on your cryptocurrency investments.
DEFI EDUCATION
⛓ The Benefits of On-chain Structured Products ⛓
All crypto indices are pretty much the same thing, right? Nope, there are some distinct differences between on-chain structured products and standard "crypto ETFs" that you should be aware of. We dive deep into custody, composability, and the fee savings that are possible when choosing an on-chain crypto index over an off-chain index.
Learn about on-chain strategy tokens here.
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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).