How is it possible to have EVM and non-EVM assets in the same index without bridging?
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. The wrapped components are fully collateralized ERC-20 tokens, similar to WBTC. Therefore, there is no intrinsic dependency on a bridging protocol.
What are the fees?
The Index Coop Large Cap Index will have a streaming fee of 0.95% (95 bps) and no mint or redeem fees.
What’s unique about ic21 composition and weighting?
ic21 employs a square root market cap weighting, resulting in less concentration of BTC and ETH and more diversification in the other eight assets. Simple market cap weighting would result in an index weighted heavily towards BTC and ETH.
While Layer 1 blockchain tokens make up the majority of the index, the methodology permits protocol tokens, Layer 2 tokens, and other categories to be included as long as they measure among the top ten assets.
Why should I hold ic21 instead of holding each of the assets myself?
There are some significant benefits of holding these assets in an index token.
Easy access - The Index Coop Large Cap Index can initially be purchased by non-restricted persons through the Index Coop app via Flash Mint. This eliminates the need for users to individually procure all of the components to mint ic21 themselves, resulting in significant gas savings.
Passive holding - ic21 allows users to simply buy the token and let interest accrue over time without requiring any additional effort or involvement. This can be a convenient, hands-off way to earn real yield on stablecoins.
Auto rebalancing - Adjusting the allocations of different assets within ic21 maintains the desired balance and tracks the methodology over time. Token holders do not pay any gas fees when a rebalance is performed.
Evergreen index - The exact constituents of ic21 will evolve over time according to the methodology. This allows the index to adapt to market conditions and continue to offer long-term value to holders as onchain protocols evolve.
Will ic21 include other tokens in the future?
The ic21 methodology provides the flexibility for the index to adapt over time. While Layer 1 blockchain tokens make up the majority of the index, the methodology allows for protocol tokens and Layer 2 tokens to be included in the index over time.
How does ic21 take into account smart contract risk?
All of the core contracts supporting ic21 have been audited by security professionals and made available in the Index Coop documentation. There is also an active Bug Bounty program for anyone who wishes to contribute to the security of ic21 and Index Protocol.
Token holders assume the external smart contract risks associated with liquid staking tokens and their issuing protocols.
Why doesn’t ic21 include x tokens?
Specific inclusion criteria have been created as a part of the methodology to capture the largest protocols in the space. These criteria are as follows:
So, the above explains why tokens like USDC and stETH are not included in ic21
How is the % of each constituent token determined?
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 the top ten included assets. A moving average helps to reduce the impact of short-term price movements that could result in unnecessary churn during rebalancing periods.
Where can I acquire ic21?
ic21 is available via swap on the Index Coop app.
Where can I stake ic21?
It’s not currently possible to stake ic21.
When/how often will ic21 rebalance?
ic21 will be rebalanced on a quarterly basis. Analysis will be performed before each rebalance to determine if new tokens or protocols are eligible for inclusion according to the methodology.
Where can I find more details about the 21.co Wrapped Tokens?
21.co has a thorough FAQ section on the website.
What is Index Coop?
Index Coop is a decentralized autonomous organization (DAO) that powers structured product and strategy tokens on the Ethereum blockchain. We aim to create decentralized finance (DeFi) products that are simple to use, accessible to everyone, and secure. Our token products are built on Set Protocol v2 and Index Protocol (a good-faith fork of Set Protocol v2). Both protocols are open-source, audited, and battle-tested.
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
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