Index Coop Announces Zero-Fee Access to Diversified Staked ETH Index (dsETH)
Boost Ethereum’s decentralisation efforts with this simple, accessible staking index.
November 8, 2023
We are thrilled to share an important update from the Index Coop. We have slashed the fees associated with our Diversified Staked ETH Index (dsETH) from 25 basis points to ZERO. This is a significant stride towards our mission of facilitating seamless access to staked Ethereum yield while recognising and rewarding the protocols that play a pivotal role in decentralising Ethereum staking.
What does this mean for dsETH holders and the Ethereum community?
Zero-Cost Access to A Diversified Staked ETH Yield Index
By eliminating the fee hurdle, dsETH holders can effortlessly tap into the staked ETH yield without any additional cost. This zero-cost access extends beyond mere cost savings; it represents a philosophy of equitable financial opportunities within the decentralised finance (DeFi) space.
The removal of fees opens up a new realm of possibilities for both novice and experienced holders. It simplifies the staking process, allowing you to direct your full allocation into the staking economy without diluting your returns with fees. As the Ethereum network continues to grow and evolve, we believe that our dsETH holders should benefit directly from the network’s success. Our zero-fee approach is set to encourage broader adoption of dsETH, fostering more robust and diversified participation in Ethereum's staking system.
While dsETH has zero fees, it is important to note that the underlying constituents each collect a percentage of the staking rewards as a protocol fee.
Rewarding Decentralisation Efforts
This initiative also serves as an incentive for the protocols that are tirelessly working to decentralise Ethereum staking. The objective of the dsETH methodology is to provide token holders with diversified exposure to liquid staking tokens. The strategy is designed with a weighting system favouring decentralised liquid staking protocols, determined by the number of node operators and the equitable distribution of stakes across these operators. Together, these measures underscore our commitment to upholding the decentralisation and security of Ethereum staking.
Strengthening Network Security and Participation
With the fee reduction, we envisage a surge in participation in Ethereum's staking, which, in turn, bolsters network security and advances the decentralisation ethos that Ethereum stands for.
Diversification among staking providers dilutes the concentration of power, reducing systemic risks and single points of failure. This enhances Ethereum's security and decentralisation, as no single entity holds excessive influence over the network, ensuring a more robust and democratic blockchain ecosystem.
Setting a Positive Industry Precedent
We believe this move with dsETH sets a welcoming precedent for other DeFi platforms and indexes, potentially paving the way for more competitive fee structures and stirring innovation in the sector.
At Index Coop, we are dedicated to continuously enhancing our services to deliver the utmost value to holders of our products and to make a positive impact on the Ethereum ecosystem. We are thrilled about the possibilities this fee elimination opens for our community.
More Resources
dsETH is available on 1inch, CoWSwap, Matcha, Index Coop App
Read the Intro post
Read Understanding dsETH
Review the analytics dashboard on Dune
Index Protocol documentation
For more information on Index Coop, please visit: Discord | X | Website
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.
You shall not purchase or otherwise acquire our restricted token products if you are: a citizen, resident (tax or otherwise), and/or green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (defined as a U.S. person), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized (together with U.S. persons, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized).
