Index Coop Unveils New Incentive (And Presale Process)
The first token to go through the new product launch process will be the High Yield ETH Index token (hyETH).
April 7, 2024
The Index Coop is delighted to unveil a new, innovative incentive: Product Revenue Tokens (PRTs). PRTs offer depositors an opportunity to share in the product revenue and are part of our redesigned product development process. The first token to go through the new product launch process will be the High Yield ETH Index token (hyETH), pending a vote by $INDEX holders. Users who deposit wstETH during the pre-launch will be eligible to receive PRTs that receive a share of revenue from the hyETH product.
Read on to learn more about:
- How the new product presale process works
- The presale process for hyETH
- The tokens that are in hyETH index
- How PRT holders will receive hyETH product revenue
- Rules and eligibility for presale deposits
- How users can participate in the hyETH presale process
How the Index Coop’s new product development process works
The most important factor in deciding whether or not to bring a new product to market is demand. Unfortunately, assessing demand in the nascent digital asset market can be difficult. To help ensure there is demand for products that Index Coop proposes, we’ve developed a new presale process. Those products that reach the predetermined threshold during the presale process will be launched formally. Products that fail to meet their threshold will not be launched, though they may be revisited or refined for a future presale.
The presale process for hyETH
For hyETH, Index Coop is looking for early adopters willing to deposit wstETH into the pre-launch token via the Index Coop app. If 500 units of wstETH have been deposited by the end of the presale period, the token will be rebalanced into the full hyETH composition. If the deposit threshold is not met, presale participants can withdraw their wstETH; presale participants are also free to withdraw at any time during the presale, though they will forfeit potential PRT rewards.
Which tokens are in the hyETH Index?
The Index Coop High Yield ETH Index (hyETH) is designed to track the performance of the largest high-yield opportunities for ETH on Ethereum mainnet that meet minimum APY and TVL criteria. The index weights all eligible strategies equally and rebalances monthly to include the most relevant strategies. You can learn more about the proposed methodology in the presale forum proposal.
The Index Coop High Yield ETH Index (hyETH) is designed to track the performance of the largest high-yield opportunities for ETH on Ethereum mainnet that meet minimum APY and TVL criteria. The index weights all eligible strategies equally and rebalances monthly to include the most relevant strategies. You can learn more about the proposed methodology in the presale forum proposal.
How PRT holders receive hyETH product revenue
Historically, product revenue has been sent to the Index Coop Treasury. With PRTs, product fees will now be distributed to a staking contract where PRT holders can claim a share of revenue. PRT holders must stake their PRTs to receive revenue; more information on the PRT staking pool will be made available after a successful presale and before hyETH is formally launched. A fixed supply of 10,000 hyETH PRTs will be issued, so an hyETH PRT holder’s revenue split is the percentage of PRTs they own (e.g. XXX/10,000). 30% or 3,000 PRTs will be distributed for the hyETH presale, with 70% going to the Index Coop.
Holders of PRTs not only receive an effective fee rebate on their hyETH, but they also receive upside in the product’s success. PRTs encourage early deposits into new products by rewarding holders with product revenue, and they also create an incentive for PRT holders to help grow and distribute the product once it is formally launched.
Rules and eligibility for making prelaunch deposits
Presales will not be available to Restricted Persons (including US Persons) as defined here. Eligible persons may participate in presales by visiting the Index Coop app and depositing to available pre-launch products. Non-restricted persons and parties may deposit to the hyETH presale beginning 16:00 UTC on April 10, 2024; more details will be shared via email, Telegram and X.
Presale deposits must be made in wstETH to qualify for PRTs; early withdrawals are enabled but will result in forfeiture of accumulated rewards. PRTs received in exchange for presale participation will be freely tradeable.
Staking of PRTs will also not be available to Restricted Persons (including US Persons) as defined here; as such, Restricted Persons should not stake PRTs. Staking will be comprehensively restricted and PRT holders must sign a contract in the Index Coop App confirming they are not a Restricted Person before they may stake.
PRTs and Staking will be made available 30 days after hyETH has officially launched; if presale participants withdraw their original deposits before this post-launch period is complete, they forfeit PRT rewards. More information on PRT distribution will be made available after a presale concludes successfully.
How to participate in the presale of hyETH
- Express interest by completing this short form so we can send deposit details as soon as they are available at 16:00 UTC on April 10, 2024.
- Once the hyETH presale is live, you may deposit wstETH via the Index Coop App*
- You can track your accrued PRT rewards in the Index Coop App* or Dune
- After the product has been launched and the post-launch window (30 days) has passed, PRTs will be made available to presale participants who have maintained their deposits
- After the product has been launched and the post-launch window (30 days) has passed, you may also stake your PRTs and begin earning revenue from hyETH
- * These app pages will not be available to Restricted Persons and will be comprehensively restricted. Users will also sign a contract confirming they are not a Restricted Person and waiving rights to PRTs and hyETH revenue for contractual non-compliance.
If you'd like to talk to us about PRTs, please email: institutions@indexcoop.com.
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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