Index Coop Releases Onchain Structured Product Report
The Index Coop's annual report examines: the largest protocols and product types attracting the most TVL; the history of this market and its current makeup; and the headwinds, tailwinds and important trends impacting its builders
July 11, 2023
The Index Coop has released the first state of the industry report for the onchain structured products space. The onchain structured product space is a new DeFi sector that includes, onchain yield products, indices, derivative products, DIY portfolios and automated proprietary strategies.
Index Coop Releases Onchain Structured Product Report
The full report is published on the Index Coop website. Some highlights include:
- In total, 49 projects have launched in the onchain structured product space since 2016. 9 have ceased operations, and 13 have suffered exploits.
- The onchain structured product market makes up 0.21% of the crypto market overall, with a combined TVL of $2.46bn across protocols. The DeFi market is $48.29bn and the total crypto market is $1.19tn.
- Yield products make up ~95% of assets, followed by DIY Portfolio & Index products
The paper covers the nascent sector’s major protocols, products, headwinds and tailwinds. It also addresses the future of onchain structured products, including the role of AI, the ‘Internet Financial System’, and potential for partnership between DeFi and CeFi.
“The structured product space is in its infancy but growing.” said Jordan Tonani, Index Coop’s Head of Institutions. “Index Coop's onchain structured product white paper is the first ever attempt to define the space and categorize key players and products within it. We hope our research helps inform and guide others who are building in this space.”
Other builders in both the onchain and offchain structured products space have recognized the potential of onchain structured products.
"Structured products have significant potential as an onramp for retail and institutional investors in digital assets,” said Ryan Rasmussen, DeFi Research Analyst at Bitwise. “The Index Coop's report represents an important step in defining the nascent onchain structured product space."
Diana Biggs, a partner at 1kx (which has invested in the Index Coop), echoed that sentiment.
“As the crypto market matures and grows, onchain structured products will have an increasingly important role to play, for both retail and institutional investors. Congratulations to Index Coop for taking the initiative to compile the data and promote awareness around this nascent and important area of innovation."
Others, like Alongside cofounder and CEO Austin Diamond, emphasized the importance of index products in increasing access to onchain capital.
"Index products have historically been one of the greatest equalizers in finance for retail participants and can provide a much needed counterweight to the active trading heavy nature of the crypto market today,” Diamond said.
Others emphasized the importance of products being onchain.
“In a post-FTX world, we believe that the fundamental principles of self-custody, 24/7 transparency and elimination of counterparty risk are more important than ever,” said Mona El Isa, Founder at Enzyme and Founder and CEO at Avantgarde.
About Index Coop
The Index Coop is a decentralized autonomous organization (DAO) and the largest provider of on-chain structured decentralized finance (DeFi) products. Our diversified and automated products provide exposure to the most productive and sustainable strategies in DeFi. We currently offer a sector, leverage and yield-generating products via ERC20 tokens that are accessible, secure and simple to use.
Press contact: Crews@indexcoop.com
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