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Innovating DeFi: Index Coop Deploys on Base
Innovating DeFi: Index Coop Deploys on Base
Why we’re bullish on the future of Coinbase's L2
8/23/2023
Index Coop
Content
It is with immense excitement and optimism that we officially announce our decision to deploy our DeFi structured products platform, Index Protocol, on the Coinbase-incubated L2 chain, Base. This move signifies not just an adoption of a new technology, but a commitment to shaping the future of decentralized finance.
Index Protocol
The Index Protocol stands as the foundation of Index Coop's suite of structured financial products. Harnessing the innate composability of DeFi, it enables the creation of dynamic yet robust tokens. Every index token crafted on this protocol can be redeemed permissionlessly for its underlying assets.
Originating as a good faith fork from the Set Protocol V2, the Index Protocol has undergone rigorous audits, ensuring the utmost safety and security for its users. View audits here.
We're not just stopping here. The protocol's extensibility means that we continually integrate cutting-edge features. Recent additions include auction rebalancing techniques and seamless integrations with platforms like Aave v3.
We understand the gravity of such decisions in the rapidly evolving DeFi space. We want to share with our community the reasons underpinning this choice to deploy on Base.
Scalability and Efficiency
One of the primary challenges DeFi platforms have grappled with has been scalability. Base’s L2 solution presents a beacon of hope in this arena. The chain boasts of high transaction throughput and reduced latency. For Index Coop, this means faster product launches, smoother user interactions, and efficient transaction processing.
Reduced Transaction Costs
Ethereum's high gas fees have been a hurdle for many users wanting to participate in DeFi. Base's L2 promises significantly lower transaction costs, making DeFi structured products more accessible to a larger audience, including newcomers and small-scale investors.
Seamless Integration
Base’s compatibility with Ethereum ensures that developers can migrate and integrate dApps without having to revamp their entire codebase. This ease of migration empowers Index Coop to redirect our energy from technical challenges to creating innovative financial products for our community.
Security
Base leverages the security assurances provided by Coinbase, coupled with its own robust consensus mechanisms. This ensures that our users can trust in the integrity and safety of their assets and transactions on the platform.
Strong Backing and Future-Proofing
Coinbase’s backing of Base is not just a testament to its potential but also an assurance of continuous development and updates. Aligning ourselves with such a potent force in the crypto ecosystem ensures that we are future-proofing our offerings and keeping up with the latest technological advancements.
In conclusion, our move to Base’s L2 chain is a carefully considered step toward redefining the future of decentralized financial products. It embodies our commitment to deliver unparalleled user experiences, drive innovation, and ensure a more inclusive and sustainable DeFi ecosystem.
We deeply appreciate the continuous support from our community. This is yet another chapter in our journey, and with your unwavering encouragement, we will keep striving for excellence.
If you’d like to discuss your idea for products and strategies that Index Coop could build on Base, let’s talk in the Index Coop Discord.
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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).