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Recommending Crypto to Friends & Family Just Became 10x Easier
Recommending Crypto to Friends & Family Just Became 10x Easier
The BED Index offers anyone, anywhere passive exposure to the most promising crypto investment themes. BED - which stands for Bitcoin, Ethereum, and DeFi - captures the upside of the three most investable crypto themes: digital gold, programmable money...
7/22/2021
Index Coop

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Recommending Crypto to Friends & Family Just Became 10x Easier
The BED Index offers anyone, anywhere passive exposure to the most promising crypto investment themes. BED - which stands for Bitcoin, Ethereum, and DeFi - captures the upside of the three most investable crypto themes: digital gold, programmable money, and decentralized finance.
The index will be represented by a fully collateralized ERC20 token and will be available for purchase on Uniswap v3, Index Coop, and TokenSets. Index Coop is on a mission to make crypto investing simple, accessible, and safe for everyone. Bankless DAO’s purpose is to drive the adoption and awareness of bankless money systems. With those shared values in mind, we are incredibly excited to announce the Bankless BED Index ($BED), powered by Index Coop. In this post, we will cover:
Why Buy the Bankless BED Index?
The BED Index provides a one-click, set-and-forget option for exposure to the best themes in crypto; buying quality, and filtering noise.
New investors in crypto today are often overwhelmed by the number of coins and tokens available to invest in. As an index that includes the most established cryptocurrencies and tokens, the BED index allows users a low-cost way to hold high-quality crypto assets with regular diversification.
There are 4 major benefits of using BED:
Simplicity — BED offers set-and-forget, 1-click crypto exposure.
Risk-Management — Volatility of individual crypto asset classes is offset by holding an index. Monthly rebalances prevent concentration.
Cost-Efficiency — Low streaming fee, reduced gas costs, and tax-efficient rebalancing.
Transparency — The index follows a set of transparent rules to assess tokens for inclusion and removal.
BED Methodology: What You Need to Know
The initial allocation of the BED index is: 1/3 Bitcoin, 1/3 Ether, 1/3 DeFi.
Bitcoin: represented as wrapped BTC (wBTC).
Ethereum: represented as wrapped ETH (wETH).
DeFi: represented as }{; \./
, a market capitalization-weighted index of top DeFi protocol tokens.BED Composition at Launch:
Market Requirements
The components must have a large cap valuation $25b+ [If an index, the corresponding token market caps must have a sum of >$25b].
The components must show signs of heavy usage either as a network (BTC, ETH) or smart contract theme (DeFi).
The assets must have sufficient liquidity for initial inclusion and rebalances.
Technical Requirements
Available on Ethereum blockchain.
Trust-minimized assets.
The token must not be considered a security by the corresponding authorities across different jurisdictions.
Safety Requirements
Assets and themes within Bankless BED Index should have vast, well-established safety guarantees.
Any network/protocol must have conducted sufficient security audits and/or security professionals must have reviewed the protocol to determine that security best practices have been followed.
Index Maintenance
BED is maintained monthly in two phases:
Determination Phase
The determination phase takes place during the fourth week of the month. It is the phase when the changes needed for the next reconstitution are determined. Methodologist maintains the option to swap assets for productive versions of themselves (e.g. stETH or UNI LP pairs).
Reconstitution Phase
Following publication of the determination phase outcome, the index composition will change to the new weights on the first Friday of the following month, when components will be added or removed.
Fees
BED will have a streaming fee of 0.25% (25 basis points). The revenue generated from the streaming fee will be split 50% to Bankless DAO and 50% to Index Coop.
How to Buy BED
At launch, BED can be purchased at several venues, including:
In the case of high slippage for large trades on DEX, you can use exchange-issuance via TokenSets for better pricing (more info on using exchange-issuance is found here).
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FAQs
Streaming fees (an annual fee paid continuously block-by-block)
Mint and redeem fees
Borrow costs (interest paid to borrow funds from onchain markets when using leverage)
Index Coop yield tokens simplify earning yield in DeFi by automating complex strategies and diversifying across protocols. They are user-friendly and cost-efficient, appealing to both new and seasoned DeFi users.
Leverage tokens automate a leveraged position by utilizing onchain money markets like Aave or Morpho to borrow funds, amplifying a user's exposure to an asset without requiring manual management. The token's smart contracts autonomously handle the borrowing, lending, and rebalancing of assets, maintaining a consistent leverage ratio despite market fluctuations. This automation eliminates the complexities of collateral management and liquidation risks, while also charging low, transparent fees that avoid expensive funding rates often charged by perps.
Index Coop is a decentralized autonomous organization (DAO) that specializes in creating and maintaining onchain structured products. Index Coop aims to democratize access to the crypto market, empowering everyone to participate in the growing digital asset ecosystem with ease.
No, yield automatically compounds and accrues to the token price. The value of the tokens you hold in your wallet will simply go up over time without the need to claim or compound rewards.
Index Coop products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
INDEX is the ERC-20 governance token on Ethereum for Index Coop. INDEX empowers its holders to participate in decision-making processes that shape the future of Index Coop.
Yes, all Index Coop products are instantly redeemable for their underlying value at all times.
Yes, all Index Coop smart contracts have been audited by leading independent security firms such as OpenZeppelin, ABDK, Isosiro, & more. There is also an active bug bounty program through ImmuneFi. Audit information is published in the docs here.
Costs and fees vary by product, but typically most products can include some combination of the following: