icETH vs. dsETH: Understanding the Difference | 2/22 Newsletter
A guide to understanding the difference between dsETH and icETH
February 22, 2023
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icETH vs. dsETH: Understanding the Difference
At Index Coop, we understand that navigating the world of DeFi can be overwhelming. With so much information and news out there, it can be difficult to know what to trust or where to start.
That's why we encourage everyone in our community to ask questions. We are here to help you learn and understand DeFi and our products so you can make informed decisions that are right for you and your situation.
Recently, we’ve had questions about the difference between dsETH and icETH, so we’ve written up a thorough explainer.
If you have additional questions, don't hesitate to contact us in Discord or reply to this email.
This week we’re sharing:
- A guide to understanding the difference between dsETH and icETH
- A new index that makes it simple to allocate to an ETH-BTC strategy
- Who’s the new meta-DEX aggregator on the block?
— The Index Coop team
icETH vs. dsETH: Understanding the Difference
Index Coop has developed two tokenized strategies to help ETH holders generate a yield: the Diversified Staked ETH Index (dsETH) and the Interest Compounding ETH Index (icETH).
But how are they different, and what are the right use cases for each?
dsETH is a simple and diversified way to gain exposure to staked ETH rewards, while icETH provides an enhanced yield on ETH with an automated leverage strategy. dsETH promotes decentralization amongst liquid staking protocols, while icETH eliminates the need to manage collateral and debt balances.
Learn more about dsETH and icETH
Inexpensive Exposure to the ETH-BTC Ratio
The Index Coop has proposed launching a product that provides exposure to the ETH-BTC ratio. The product will use Aave's V3 Market to supply wETH, borrow wBTC, sell it for wETH, and supply it back as collateral to Aave V3.
This higher-risk strategy has historically outperformed both dsETH and icETH strategies over a long-term time horizon. The product delivers value to customers by offering exposure to the ETH-BTC ratio in a low-risk fashion, abstracting the management of collateral and debt balances, and socializing gas costs associated with maintenance.
The target audience for this product includes on-chain Ethereum investors and traders who believe ETH-BTC outperformance is likely to continue.
Read More About The ETH-BTC Ratio Index
Index Coop 🦉 ❤️ DefiLlama 🦙
Index Coop’s latest token, dsETH, is now available on DefiLlama's new DEX meta-aggregator.
A DEX meta-aggregator enables users to search for the most favorable price and conduct trades across several decentralized exchanges simultaneously.
By trading on a platform like DeFiLlama, you can save money and quickly find the best deals when trading Index Coop products and cryptocurrencies.
To get analysis & updates from Index Coop delivered to your inbox, subscribe to the Index Insights newsletter.
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