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How to Buy dsETH
How to Buy dsETH
Holders of dsETH will gain access to a sustainable, less volatile source of yield while simultaneously contributing to the decentralization of the Ethereum network.
1/24/2023
Index Coop
In this article, you’ll learn:
What is dsETH?
How to Buy dsETH
How to execute small trades of dsETH
How to execute large trades of dsETH
What is dsETH?
The objective of dsETH is to give token holders diversified exposure to liquid staking tokens with weightings that favor decentralized liquid staking protocols. At launch, the index will be composed of rETH (Rocket Pool), wrapped stETH (Lido), and sETH2 (StakeWise). Learn more about your dsETH yield in this article.
How to Buy dsETH
Depending on how much dsETH you intend to purchase and whether you want to purchase dsETH on-chain or off, dsETH is available on various platforms. This article will provide basic instructions for where and how to buy dsETH. If you need additional help, don’t hesitate to reach out to our team via Discord. Please also read the disclaimer below.
For trade sizes less than 35 dsETH
Ethereum
DEX:
DEX aggregator -
zkSync
Wallet -
(currently found in the Swap crypto section)
Layer 2 DEX -
You can also earn yield by providing automated liquidity for dsETH on:
For trade sizes larger than 35 dsETH
For larger trades (of more than 35 dsETH), purchase is available via Flash Mint on the Index Coop app. Compared to typical DEX trades, Flash Mint can facilitate more cost-effective large trades by minting new units from the underlying product components. This is especially helpful where the cost of slippage would exceed the cost of gas for buying each token and minting a new product unit.
* Please note, the 35 dsETH Flash Mint recommendation is an estimated threshold, and the best purchase path will depend on a number of factors, including:
Gas: The cost of a mint is roughly 10x the cost of a swap, so when gas is higher, it increases the breakeven point for minting liquidity
Profile: If there is more/less liquidity, it will change the cost to enter/exit via a swap.
Current Premium/Discount: If there is a discount, it is advantageous to buy on a DEX. If there is a premium, it is not advantageous.
Questions?
Please reach out to institutions@indexcoop.com for more information on institutional purchases.
About Index Coop
Index Coop is a decentralized autonomous organization (DAO) that powers structured product and strategy tokens on the Ethereum blockchain. We aim to create decentralized finance (DeFi) products that are simple to use, accessible to everyone, and secure. Our token products are built on Set Protocol v2 and Index Protocol (a good-faith fork of Set Protocol v2). Both protocols are open-source, audited, and battle-tested.
For more information on Index Coop, please visit: Discord | Twitter | Website
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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).