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🪙 MNYe - A basis trading strategy tokenized 🪙 | August 3rd Newsletter
🪙 MNYe - A basis trading strategy tokenized 🪙 | August 3rd Newsletter
We’re launching a new product — Market Neutral Yield ($MNYe).
8/3/2022
Index Coop
Content
🪙 MNYe - A basis trading strategy tokenized 🪙
August 3rd Newsletter
Hi, there! This week, we’re excited to share that we’re launching a new product — Market Neutral Yield ($MNYe). This token automates a continuous basis trading strategy that returns a high, price-neutral yield to holders. Next, we’ll dive into how MNYe holders can earn additional yield by providing liquidity. Lastly, I spill the details of how you can help choose the topics and participate in our upcoming August Index Community Call.
-@thekindeagle and the Index Coop team
PRODUCT NEWS
📈 Sustainable Yield in Volatile Markets 📉
The Index Coop is excited to announce the launch of its first yield product on Optimism — Market Neutral Yield ETH ($MNYe). Built using Set Protocol’s integration with Perpetual Protocol on Optimism, MNYe automates a continuous basis trading strategy that returns a high, price-neutral yield to token holders. Basis trading, also known as cash-and-carry arbitrage, is an established strategy for achieving price-neutral profit by arbitraging the difference between an asset price on the spot and near-term futures markets.
PRODUCT NEWS
🪙 How to Earn Additional Yield with MNYe 🪙
Providing liquidity is one way of generating additional yield with the MNYe token. Decentralized exchanges present liquidity providers (LPs) with the opportunity to earn a portion of fee revenue. By pairing MNYe against another stable coin such as USDC, LPs can benefit from transaction fees with little chance of impermanent loss due to the stable nature of the pair.
INDEX EVENTS
☎️ Hoot! Hoot! Calling All Owls! ☎️
Join us this Thursday at 10 am Eastern/ 2 pm UTC for the August Index Coop Community Call. There’s a lot going on, so feel free to jump into our Discord and let us know what you are most interested in discussing this week. Potential topics include: 🚙 - Product roadmap 🚀 - General org updates/recent changes 🪙 - MNYe (new) product launch 💰 - Season 2 budget and quarterly financial report
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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).