Index Coop

Other

Index Coop is a decentralized "on-chain index" builder that lets anyone create, manage and trade baskets of crypto assets.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Index Coop enables the creation of crypto index primitives so users can easily get exposure to an asset class without deep knowledge.
What we like less
The index sets are often highly correlated with ETH and may not be an effective method of portfolio diversification.
What it means for you
Offers you easy access to crypto sectors without purchasing all the underlying tokens individually.
Podcast
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Degen Responsibly
Index Coop: Decentralized Crypto Indices
Our guest today is Crews, Ecosystem Growth Lead at Index Cooperative. Index Coop is a decentralized platform that creates, manages, and trades baskets of crypto assets in the form of index funds. By holding a single ERC-20 token, investors can gain exposure to a specific crypto sector or leveraged strategy, such as DeFi, Metaverse, or Liquid Staking Tokens. In this conversation, we explore the value and challenges of on-chain indices and the range of products offered by Index Coop. We also discuss the risks associated with investing in index funds and how Index Coop manages and mitigates them. ----- Degen Responsibly is a series of live talks by Exponential DeFi and a guest protocol. In these conversations we explore some of the latest and greatest projects in DeFi, what makes them unique, their builders but also talk about the risks and what to watch out for. Our goal is to help investors make better informed decisions and help them save time as they do their own research. ----- Learn more about us at exponential.fi and follow us @exponentialdefi ----- Information provided here is presented for educational purposes only and does not consider financial advise or any offer or solicitation to buy any of the tokens or invest in any of the pools mentioned throughout the podcast.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $79.7M (Rank #76)
  • TVL Ranking by Other: #0
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $79.66M
Risk Assessment
Good
Protocol Code Quality
  • Code reviewed by several experienced auditors including Trail of Bits and OpenZeppelin
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • Index specializes in technology that ""tokenizes"" complex positions, like a 3x long position or a 3x short position.
Things to know about Index Coop

How Index Coop works

The Index Cooperative (Index Coop) is a global community focused on launching and maintaining crypto index vehicles. The Index Coop's first product is the DeFi Pulse Index (DPI). DPI is a capitalization-weighted index that tracks the performance of top assets in DeFi that have significant usage and have shown a commitment to ongoing development. The index is weighted based on the value of each token's circulating supply. Other index products include the Metaverse Index (MVI), Diversified Staked Ethereum (dsETH), Interest Compounding ETH (icETH), and Flexible Leverage Indices (FLI). Index Coop products all use Set Protocol's infrastructure to automatically rebalance the portfolio of assets in line with their defined methodologies on a monthly basis.

How Index Coop makes money

Index Coop charges an annualized streaming fee on the total market cap of an index set that accrues continuously. Streaming fees vary between 0.25% to 5.95% depending on the product. Index Coop does not charge any performance fees on any of its products, including yield-generating products like icETH. For low liquidity products like FLIs, Index Coop charges a mint/redeem fee of 0.1% and 0.5%, respectively.

How you make money on Index Coop

You can invest into Index Coop products to get exposure to certain asset classes and generate yield from price appreciation. These assets are also composable across DeFi and can be paired with other assets to generated trading fees. You can also lend these assets to others to earn borrower's interest.

Index Coop Pools
Index Coop Interest Compounding ETH
icETH
4.1%
Yield
$10M
TVL
Risk
B
Protocol
Index Coop
Chain
Ethereum
Details