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How To Earn Sustainable Yield on ETH | 2/8 Newsletter
How To Earn Sustainable Yield on ETH | 2/8 Newsletter
With that in mind, this week we’re sharing a guide to earning yield on ETH.
2/8/2023
Index Coop
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How To Earn Sustainable Yield on ETH
Since the Merge, staking has become an increasingly popular method of generating yield on ETH. In March 2023, many expect that the Shanghai upgrade—which will free validators to withdraw the 16 million ETH currently staked— to only increase the popularity of ETH staking,
With that in mind, this week we’re sharing:
A guide to earning yield on ETH
A recording of our liquid staking webinar with representatives from Lido, Rocket Pool, and StakeWise.
We also have a few updates to share about our Metaverse Index (MVI).
— The Index Coop team
How to Earn Yield on ETH
There have never been more ways to generate yield on ETH than today. This can make it challenging for those just getting started to understand the landscape and make informed decisions about earning yield on ETH.
With that in mind, we’ve written a guide to earning passive income on ETH. From simply buying the dsETh token to more complex strategies, we’ve broken it down for you.
Learn How To Generate Yield on ETH
Watch the dsETH Liquid Staking Panel
Last week, leaders from Lido, Rocket Pool, StakeWise, and the Index Coop participated in a roundtable Webinar discussion.
The webinar includes a deep into the history of Ethereum staking, the state of the staking ecosystem, and the role of the Index Cooperative's new $dsETH index..
Improving the Metaverse Index (MVI)
In November, Index Coop took over as operator and methodologist of the Metaverse Index (MVI), an index designed to capture the trend of entertainment, sports, and business shifting to take place in virtual environments.
In our new role as sole methodologists for the product, we plan to update the methodology and transition to a new rebalance schedule on March 1.
We also plan to:
Broaden the index to include NFT Infrastructure and Gaming
Improve the “liquidity-weighting factor” to more accurately assess on-chain liquidity
Add multiple sources to improve the robustness of the data
Make minor changes to liquidity and market capitalization thresholds
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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).