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icETH Proves Resilient Despite Market Volatility | 12/7 Newsletter
icETH Proves Resilient Despite Market Volatility | 12/7 Newsletter
Inside this week’s newslette, learn how icETH has weathered multiple episodes of market volatility.
12/7/2022
Index Coop
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How icETH Weathered Four Significant Events
Market volatility can make developing a crypto portfolio seem exhausting. Whether you’re looking for broad exposure to DeFi protocols or want a simple way to earn staking rewards, Index Coop structured products are simple and resilient in all market conditions.
Inside this week’s newsletter:
Learn how icETH has weathered multiple episodes of market volatility
Join our LinkedIn Live with The Tie & Community/Index Insiders call next week
Deprecation of DATA, GMI, MNYe, and Polygon FLI Products
— The Index Coop team
icETH Proves Resilient Despite Market Volatility
The Interest-compounding ETH Index (icETH) enhances the effective return of ETH staking rewards by leveraging a liquid staking strategy. Through a tumultuous bear market and sweeping upgrades to the Ethereum ecosystem, 2022 has tested icETH. Nevertheless, icETH has recently returned APYs, ranging from 8.4% to 26.9%.
If you’re interested in learning more about icETH, check out this article on icETH yield. To determine the overall APY of your icETH, use this calculator.
In this article, we’ll cover the four significant events icETH has weathered since its inception in March 2022:
ETH/stETH Depeg - May 2022
Pre-Merge ETH borrowing crisis - September 2022
stETH/ETH spread closing post-Merge - September 2022
FTX/Alameda Crisis- November 2022
Read More About icETH’s Resiliency
Watch Our Live Event With The Tie
The Tie Index Coop joined The Tie on LinkedIn Live to discuss “Investing in Indices: Structured Products in DeFi.” As the complexity and success of DeFi rises, with regulation unable to keep pace, we will look to answer a few questions:
-How can customers & institutions gain thoughtful and safe access to DeFi products? -How do index/ecosystem product operators decide on offerings? -How can crypto create valuable diversified products, despite its youth?
Update: Progress on Product Deprecation
Last week, our engineering team started Phase 2 of deprecating several products, including the Bankless DeFi Innovation Index (GMI), Market Neutral Yield ETH (MNYe), Web3 Data Economy Index (DATA), and the suite of Polygon FLIs (ETH2x-FLI-P, BTC2x-FLI-P, Matic2x-FLI-P, iETH-FLI-P, iBTC-FLI-P, iMatic-FLI-P).
As of Wednesday morning, DATA and all FLI products are rebalanced into their single asset. Rebalances of GMI and MNYe are ongoing, and our target is to finish this week.
Those holding these tokens should trade or redeem by December 27, before active support ends, and holders are required to redeem manually via smart contract interaction only.
For those needing help with the next step, visit us in Discord. Rebalances on DATA, GMI, and MNYe will happen later this week.
More Information About Deprecation
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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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