GemCoin Spotlight: Index Coop

In this review, I will examine Index Coop, a leading DeFi protocol specialising in on-chain structured products. Index Coop allows users to reduce risk by participating in thematic index pools instead of concentrating their assets in a single project. This innovative platform creates a significant presence in the ever-evolving crypto world, constantly generating up-to-date indices through its engaged community.

*They are working on the Real World Assets (RWA) index icReal and will be launching it soon!

Let's take a closer look at Index Coop's unique and high-yielding products 👇

Overview

Index Coop, an EVM-based organisation, is dedicated to creating and promoting crypto index primitives with the mission of providing easy access to various crypto market sectors, enabling hedging strategies and offering exposure to asset classes without requiring deep knowledge.

Empowered by the ndex governance token to make vital decisions such as adding new indices, managing the community treasury, updating fee structures and optimising index performance, the community is at the heart of their success. Distribution strategies include a liquidity mining programme, index methodology rewards and a community treasury.

Governance initially started with multisig, but is becoming increasingly decentralised with active community participation through discussions and voting processes. Ultimately, Index Coop aims to become the leading provider of crypto index products in the fast-growing DeFi space and the primary platform for Index Coop's offerings from 2023 has been launched. Unlike Set Protocol v2, Index Coop's primary focus is on supporting secure and accessible structured products launched by Index Coop and its partners, rather than serving as a self-service platform for third parties.

*Set Protocol v2 is an EVM-based protocol developed by Set Labs that enables the conversion of asset management strategies into ERC20 tokens. Set Labs has historically been the primary platform for Index Coop products as it is a founding member of the DAO.

Platform and How it works

Index Coop is a decentralized autonomous organization (DAO) on the Ethereum blockchain. Its main focus is to create and manage decentralized financial products called "index tokens" or "DeFi index funds" that track various cryptocurrencies and offer diversified exposure to digital assets. Here is a summary of how it is done Index Coop operates:

Governance

Index Coop operates as a DAO where decisions are made collectively by token-holding community members. Anyone can propose changes or decisions, such as creating new index tokens or modifying existing ones.

Index Proposal

Community members define criteria for the assets in an index, considering factors such as market capitalization and liquidity. After agreement, the index is created with the initial composition.

Asset Management

The DAO manages the assets in the index and regularly rebalances to maintain desired allocations. Strategies such as yield farming can be used for higher returns.

Index Tokens

Once operational, index tokens are minted and can be purchased by users to gain exposure to the underlying assets without being managed individually.

Fees and Revenue

Index Coop charges management fees and the revenue generated goes into the DAO's treasury for development and expenses.

Community

Success relies on active community participation in decision making, proposing changes and contributing to development and marketing.

Usage

Index tokens can be integrated into DeFi, used as collateral, traded on decentralized exchanges or staked in liquidity pools.

Products and Services

Index Coop currently offers a wide range of products including Sector, Leveraged and Yield Generating Products:

*Index Coop's TVL is currently approximately $46 million. Sector Index Products ▪️ Index Coop Large Cap Index (#ic21): Crypto index backed by assets that include the industry's top projects.

Unbanked BED Index (#BED)

The Unbanked BED Index combines BTC, ETH and DPI with equal weighting, providing exposure to key digital asset themes.

Metaverse Index (#MVI)

Offers the best return opportunity by capturing virtual economy trends powered by NFTs and blockchain in entertainment, social and business.

Defi Pulse Index (#DPI)

A weighted index tracking leading protocols in decentralized finance (DeFi). Leverage Products

BTC Flexible Leverage Index (#BTC2X-FLI)

Uses BTC collateralized debt position as leverage to achieve 2x BTC exposure.

ETH Flexible Leverage Index (#ETH2X-FLI)

Uses an ETH collateralized debit position to gain 2x exposure to ETH. Return Generating Products

Interest Compounded ETH Index (#icETH)

Allows you to increase ETH staking returns through a leveraged strategy offered by Index Coop.

Gitcoin Staked Ethereum Index (#gtcETH)

Invest in leading Ethereum staking tokens and contribute to Gitcoin's initiatives through related fees.

Diversified Staked Ethereum Index (#dsETH)

Diversify your holdings with a selection of leading Ethereum staking tokens.

Money Market Index (#icSMMT)

Track the top stablecoins distributed across floating rate, peer-to-peer and fixed rate lending positions on the Ethereum mainnet. Future Products

Ethereum Trend Index (#cdETI)

This index offers a hands-on approach to crypto market volatility by adjusting between wETH and USDC based on Ethereum's price trends.

Real World Assets RWA (#icREAL)

Combines on-chain treasury bonds and global credit markets, giving you access to a diversified basket of public and private credit opportunities for higher returns.

Tokenomics

Index is a governance token that empowers holders to participate in decisions for Index Coop. Its value is tied to governance and allows voting on proposals for smart contract improvements, treasury allocation and more. Index is earned through contributions and is seen as a 'proof-of-work' token focused on long-term prosperity for Index Coop.

Index Coop #Index Token Distribution:

• Airdrop for DPI holders - 1%
• Index Methodology Program - 7.5%
• Liquidity Mining Program - 9%
• Community Treasury - 52.5%
• Set Labs Inc - 28
• DeFi Pulse - 2%

Conclusion

PROS

• Indexcoop offers a variety of crypto index products that cater to different strategies.
• They have partnerships with major crypto projects and have received investments from reputable companies.
• It keeps up to date by introducing new products such as the Real World Assets (RWA) index.
• Audited by reputable firms.
• They have an active and engaged community and are constantly discussing innovations in governance forums.

CONS

• Instability in the crypto market could affect the performance of index products.
• The growing DeFi space requires constant innovation for leadership.
• As the adoption of index projects is not yet fully realized, they need to focus more on marketing.

In conclusion, Index Coop is a pioneer in the crypto world, offering a wide range of crypto index products designed to suit different investment strategies. They make navigating the highly volatile crypto world risk-free for investors.

What sets them apart is their commitment to innovation, as evidenced by the recent launch of indices such as the Real World Assets (RWA) Index (#icReal) and the Ethereum Trend Index (#cdETI). These indices provide unique opportunities for traders to explore a wide range of assets and capture current narratives.

Index Coop's active community engagement and strong governance practices place them in a strong position in the crypto space. While challenges such as market volatility exist, Index Coop's solid foundation and forward-thinking approach position them as a leading player ready to shape the future of index-based DeFi platforms.