Before we dive into Index Coop let’s talk about “Index Funds” first. An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index. You've probably heard of the S&P 500 or the Nasdaq-100, which are both popular large-cap indexes in the stock market; when you invest in an index fund, your money is used to invest in all the companies that make up the particular index.
Index Coop is the first decentralized company dedicated to making crypto index primitives easier to create and utilize. Using Index Coop users benefit from:
“Clients hold $58,792,664 in our products”
Below are some of the indexes offered by Index Coop with brief description:
We'll take a closer look at DeFi Pulse and Interest Compounding ETH Indexes in the following sections.
The DeFi Pulse Index is a digital asset index designed to track tokens’ performance within the Decentralized Finance industry that have significant usage and show a commitment to ongoing maintenance and development.
“For many DeFi Pulse Index holders, the DPI token represents diversified exposure to the blue-chip tokens of the current DeFi ecosystem.”
The inclusion criteria are the basis to select what tokens will be included in the index. DeFi Pulse Index token inclusion criteria are broken down into four categories: token description, token supply characteristics, project traction, and protocol user safety.
The underlying tokens of DPI are shown in picture below:
The Interest Compounding ETH Index (icETH) is a leveraged liquid staking approach to boost staking rewards. icETH multiplies the staking rate for stETH while decreasing transaction costs and risk associated with managing collateralized debt in Aave, thanks to Set's battle-tested leverage token architecture.
Token holders retain spot exposure to ETH and amplify staking returns up to 2.5x.
“Because of the high correlation of the assets involved, icETH is safer than doing using leverage manually.”