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How to Buy icETH | Interest-Compounding ETH Index
How to Buy icETH | Interest-Compounding ETH Index
With APYs recently ranging between 8.4% and 26.9%, icETH offers sustainable staking contained within a single yield-generating token. Learn how to buy icETH.
11/22/2022
Index Coop
icETH is one of Index Coop’s highest total value locked (TVL) products. With APYs recently ranging between 8.4% and 26.9%, icETH offers sustainable staking contained within a single yield-generating token.
What is icETH?
Using a leveraged staking strategy, icETH multiplies the staking rate for stETH while minimizing transaction costs and risk associated with maintaining collateralized debt in Aave. This means that even during the bear market, icETH offers sustainable staking, recently boasting APYs in the 8.4% to 26.9% range.
Learn more about your icETH yield in this article or use this calculator to calculate your icETH yield.
How to Buy icETH
Depending on how much icETH you intend to purchase and whether you would like to purchase icETH on-chain or off, icETH is available for purchase on a variety of platforms. For help purchasing, please visit our Discord.
For trade sizes less than 40 icETH
For trades less than 40 icETH, you can purchase icETH from a number of platforms and DEXs including:
or a DEX aggregator like
The
Wallets like
Layer 2 DEXs like
or
You can also earn yield by providing automated liquidity for icETH on:
For trade sizes larger than 40 icETH
For larger trades (more than 40 icETH), 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.
Institutions can also purchase icETH off-chain using custodians like:
* Please note, the 40 icETH 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 decentralized finance (DeFi) products and strategy tokens using smart contracts on the blockchain. We offer a suite of sector, leverage, and yield-generating products. We aim to create products that are simple to use, accessible to everyone, and secure. Our products are built on Set Protocol, a twice-audited, self-custodial DeFi tool that allows for creating and managing Ethereum-based (or ERC-20) tokens. Index Coop maintains one of the most significant partnership networks in the DeFi ecosystem among users, partner protocols, and our composable products.
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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.
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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).