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Index Coop Large Cap Index
Overview
The Index Coop Large Cap Index (ic21) is an on-chain crypto index token that is built around the largest and most successful crypto projects, ranked by square root market cap weighting. $ic21 contains a number of non-EVM assets, such as ADA and SOL, that will be included via the creation of newly issued wrapped tokens that will be managed by 21.co. These tokens will use a custodial model similar to wBTC or USDC, and liquidity will be made available to Index Coop via 0x RFQ orders.
Methodology
The Index Coop Large Cap Index (ic21) will employ a square root market cap methodology and apply a 30d simple moving average to market cap data before determining the ultimate weights for included assets. The averaging helps to reduce the impact of short-term price movements that could result in unnecessary churn during rebalancing periods.
Token Inclusion Criteria :
the digital asset should not be a staked or derivative version of an included asset
the digital asset must not be a stablecoin
the digital asset must not be a meme coin
the digital asset must not be under individual investigation by a securities regulator
the protocol or project associated with the digital asset must be open source
Deployment and Bridges
$ic21 and its components will be deployed on Ethereum main net. There is no intrinsic dependency on a bridging protocol. Any underlying assets that are not native to the Ethereum blockchain will be made available by our product partner via a custodial wrapped solution that is similar to wBTC or common stablecoins.
Recomposition
The total number of assets will be limited to 10 at launch, and any recomposition will take place in line with semi-annual rebalances.
Maintenance
ic21 will be rebalanced via auctions on a semi-annual basis, or every six months.
ic21 is thefirst Index Coop product to rebalance via dutch auctions, an innovative upgrade for Index Protocol. Historically, Index Coop products on Set Protocol v2 and Index Protocol function as “takers” when rebalancing and constrained by onchain liquidity sources. With auction rebalancing, ic21 will function as a “maker” by setting acceptable prices and defining discrete decay functions per component. Once an auction begins, bidders compete against each other to provide the best possible price, buying and selling the underlying components until the index is effectively rebalanced by these third parties. As always, ic21 token holders do not pay for any gas associated with rebalancing.
For ic21 token holders, this means more efficient rebalances, less potential NAV decay, and less dependency on the index operator. Auction rebalancing also opens up future automation and efficiency improvements that we will cover in a future blog post.
Fees
Annual Fee: 0.95%
Risks
The following risks may apply to this digital asset: full or partial loss of digital assets due to technical hacks, exploits, or failures that may occur at the protocol or smart contract level of a product’s infrastructure; restrictions placed on the digital assets by regulatory authorities in the end users region; loss of digital assets or loss of access to the digital assets due to decisions made by centralized providers of the underlying assets; full or partial loss of digital assets through standard product operations which can be hampered by unexpected market conditions; full or partial loss of digital assets due to changes to underlying product assets made by the originating protocols; full or partial loss of digital assets due to volatility, correlation, value at risk, and contagion risks; underperformance of digital assets due to deviation from intended methodology; full or partial loss of digital assets due to the volatility of underlying tokens.
The ic21 token was created entirely by the Index Coop. 21.co has no involvement in the issuance, management, or distribution of ic21.
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).