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Unlock the Potential: Shift Staked ETH to Index Coop Products| 4/12 Newsletter
Unlock the Potential: Shift Staked ETH to Index Coop Products| 4/12 Newsletter
dsETH, gtcETH, and icETH are great post-Shanghai options.
4/12/2023
Index Coop
Content
Welcome to the latest edition of our newsletter! As the Ethereum Shanghai upgrade gets underway, we're thrilled to share insights on unlocking staked ETH and the diverse opportunities this presents.
In this issue, you'll discover:
How the Shanghai upgrade is an opportunity to unstake and gain ETH staking yield with index products
The buzz around gtcETH on The Daily Gwei
Index Coop's unwavering commitment to improving Index Protocol
— The Index Coop team
Unlocked Staked ETH ➡️ dsETH, gtcETH, icETH
The Ethereum Shanghai upgrade commences today, April 12, and upon completion, over 18 million staked ETH (valued at approximately $35.8 billion) will be unlocked, ultimately injecting more liquidity into the ecosystem.
Holders of unstaked ETH will be motivated to shift their ETH between various liquidity-staking token solutions in pursuit of the highest possible returns in liquidity pools. LST protocols will also be driven to capture market share by ensuring their tokens offer maximum liquidity.
For those looking to save time and diversify their ETH portfolio, Index Coop offers an array of liquid staking index products, including dsETH, gtcETH, and icETH.
gtcETH Featured on The Daily Gwei
Anthony Sassano, a well-known figure in the Ethereum community and decentralized finance (DeFi) advocate, recently featured gtcETH in a recent episode of “The Daily Gwei.”
The Gitcoin Staked ETH Index (gtcETH) is an index token made up of the leading Ethereum liquid staking tokens. In addition to a methodology that encourages decentralization, gtcETH shares staking rewards with Gitcoin to support public goods funding.
Consistently Enhancing Index Protocol
Index Coop is actively working on innovative solutions to reduce issuance costs on the Index Protocol on Ethereum, ensuring accessibility and scalability.
Solutions under consideration include Yearn-style vaults and deploying Index Protocol to Layer 2, which would dramatically reduce costs. The goal is to provide diversified access to numerous yield sources through a single secure token.
The engineering team at Index Coop has developed "auction rebalancing" to address issues with the rebalancing process and limited trading options. This solution not only promises the best execution but also enables product designers to incorporate a wider array of tokens.
All future products will benefit from this protocol upgrade, enhancing existing offerings and expanding possibilities for the Index Coop community.
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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).