The Money Market Index ($icSMMT) is an index token of the top stablecoins distributed across variable-rate, peer-to-peer, and fixed-rate lending positions on Ethereum main net. Within the index, USDC, DAI, and USDT are deposited into the most battle-tested money market protocols: Morpho, Notional, Aave v2, and Compound. The composition is defined by a methodology that sets equal weights for each stablecoin and determines which protocols to deposit to based on historical rate data.
Because of gas costs on Ethereum mainnet, the Money Market Index is best suited for those making large purchases (suggested minimum purchase is ~$500k).
Capital allocators, agile funds, and DAO treasuries looking to minimize risk and diversify their holdings while earning passive income from their stablecoins would benefit from purchasing Money Market Index tokens.
The Money Market Index token does not have deep liquidity on DEXs because the Index Coop does not want to perpetually provide protocol-owned liquidity (POL) for the product. POL can be difficult to manage over extended time periods, and high gas costs make rebalancing LP positions prohibitively expensive for the time being.
A minimal amount of liquidity has been deployed to provide a simple price feed while the Index Coop develops more robust Net Asset Value (NAV) feeds. At launch, Flash Mint in the Index Coop app is the exclusive access point for the Money Market Index token.
Based on our analysis of yield-generating strategies of the included protocols and thorough backtesting, we anticipate an annual percentage yield (APY) in the range of approximately 2-4%.
Please note that the high gas cost of minting Money Market Index tokens will affect the overall return. The recommended minimum purchase amount is ~$500k, and users can reference this issuance calculator to estimate gas costs and determine breakeven points.
Non-restricted persons can Flash Mint and Redeem Money Market Index tokens in the Index Coop App.
As we value your feedback and aim to address any lingering questions, we encourage you to reach out to us on our Discord server. Our team is always available to provide additional information, discuss the finer details of the Money Market Index, and ensure that you feel confident in your understanding.
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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