Recommending Crypto to Friends & Family Just Became 10x Easier

Lemonade Alpha

Jul 22 | 3 min read

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 BED Index?

BED Methodology

Index Maintenance

Where to buy BED at launch

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 }{; \./DeFi Pulse Index (DPI), a market capitalization-weighted index of top DeFi protocol tokens.BED Composition at Launch:

BED token composition at Launch showing the weighting of the 14 tokens included in the defi Pulse Index for a tall equal weighting of 33% DPI 33% ETH 33% BTC

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:

Uniswap v3

Indexcoop.com

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).

Further availability at wallets and aggregators coming soon!

Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.

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Information is for educational and illustrative purposes only. The Index Cooperative is not engaged in the business of the offer, sale or trading of securities and does not provide legal, tax, or investment advice. Cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent.No Index Cooperative communication is intended to imply that any digital assets are low-risk or risk-free. The Index Cooperative works hard to provide accurate information on this website, but cannot guarantee all content is correct, complete, or updated.

Recommending Crypto to Friends & Family Just Became 10x Easier

Lemonade Alpha