ETH Borrow Rate’s Impact on icETH | September 7th Newsletter
This week, surging ETH demand has increased interest rates and impacted DeFi products leading into the Merge.
September 7, 2022
🧊 ETH Borrow Rate’s Impact on icETH 🧊
September 7th Newsletter
Hi, there! This week, surging ETH demand has increased interest rates and impacted DeFi products leading into the Merge. We walk through how icETH is handling the volatility to come out on the other side with 2-3x staking rewards.
Next, a bug in the Compound protocol froze their ability to lend ETH and put ETH2x-FLI temporarily on pause. Learn how Index Coop provided information and kept funds secure during and after the fix was applied.
Finally, whether you’re HODLing ETH or making a strategic play before the upgrade, we review the Index Coop ETH products that provide simple access to strategies. -@thekindeagle and the Index Coop team
PRODUCT NEWS
🧊 ETH Borrow Rate’s Impact on icETH 🧊
From late June until last week, Interest Compounding ETH (icETH), had outperformed both ETH and stETH. Recent pre-Merge volatility and demand for ETH have resulted in icETH swinging between a positive and negative APY.
Like the deviation between the stETH/ETH price earlier this year, icETH’s battle-tested infrastructure and automated safeguards are in place to minimize the risk of maintaining a collateralized debt position in Aave.
Learn about icETH & ETH borrow rate
PRODUCT NEWS
🟣 ETH2x-FLI Funds Secure During Compound Bug 🟣
Last week, Index Coop became aware of a bug affecting Compound, which resulted in a freeze of their cETH market. cETH is a core component of Index Coop’s mainnet ETH2x-FLI product.
On Tuesday, Compound’s bug fix went live. User funds in ETH2x-FLI remained secure throughout the outage, and mint/redeem capabilities have now been restored.
PRODUCT NEWS
🪙 Position Yourself For “The Merge” 🪙
The much anticipated “Merge” is only a week away. There’s no shortage of speculation, predictions, and maneuvering taking place in the lead-up.
Whatever your position, Index Coop offers several structured products tied to the price of ETH. Your expectations of the post-Merge price of ETH can help inform which products you choose.
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