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Index Coop Statement on Recent Events
Index Coop Statement on Recent Events
The collapse of centralized exchange FTX.com this week has shaken the cryptocurrency industry.
11/9/2022
Index Coop
Content
Markets are trading down, and many are suffering steep losses. You can read an overview of what happened from Coindesk. Our thoughts are with those who have been impacted by these events.
For those who hold INDEX or our strategy tokens, we want to make it clear that Index Coop has no connection to FTX. Our balance sheet does not have any exposure to FTT or assets custodied by FTX, and Index Coop operations will not be affected by recent events.
We'd also like to take this opportunity to articulate what separates DeFi, Index Coop and our products from centralized actors like FTX:
All of our assets are self-custodied. We do not have the ability to move, alter or otherwise transact with user’s funds. Users always have the ability to permissionlessly withdraw their funds.
Our products are fully on-chain and transparent 24/7. Product holders can view their holdings at any point with proof of collateral. Proof of reserves are guaranteed and are not manually reported but rather available on-chain for anyone to audit.
Automated risk management is built into our products via smart contracts. Diversification is a reliable risk management practice meant to protect assets during turbulent times. Many of our products have automated risk management built-in rebalancing and reweighting, automatically preparing our users for the most turbulent market changes.
We clearly and transparently acknowledge risks. As with any digital asset, our products are not without risk. We acknowledge the risks associated with owning our products on each of our product pages on our website.
Index Coop operations are not impacted by recent events. Our treasury holdings are self-custodied on-chain, and not exposed to CeFi risks. Our treasury is made up overwhelmingly of stablecoin and low-risk stablecoin yield positions.
This is a challenging moment for our industry. Many are disheartened by the apparent lack of risk management and irresponsible business practices at Alameda and FTX. And the effects of these events are still playing out.
Despite the challenges of this year, and this past week in particular, we remain optimistic about the future of true decentralized finance. Index Coop and our partners across DeFi remain committed to building a permissionless, on-chain, fully decentralized financial system.
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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).