hyETH is a diversified index of high ETH yield strategies. hyETH targets the highest ETH-denominated yields on Ethereum Mainnet that meet minimum APY and TVL criteria.
Tokenisation of these strategies abstracts away the complexity, management, and need for continual monitoring and trading for users.
The primary advantages of holding hyETH include:
The components of hyETH must meet the following criteria to be included in the index:
The composition will consist of the top five strategies ordered by TVL that meet these criteria; the included strategies will be weighted equally. A maximum of five strategies will be included at any given time.
If you’re interested in diving deeper into the components and methodology of hyETH, learn more in our article Introducing: The High Yield ETH Index.
The initial composition of hyETH collects yield from three primary strategies: Fixed Rate Liquid Restaking on Pendle, Leveraged Liquid Staking on Instadapp, and Cross Chain Liquidity Providing on Across
To learn more about how the yield is derived, see our article Introducing: The High Yield ETH Index.
hyETH is rebalanced monthly to include the most relevant and high-yield strategies, ensuring the index reflects the current best opportunities in the DeFi space.
hyETH is considered a higher-risk product than The Diversified Staked ETH Index with significantly more protocol and smart-contract risks due to the number of times ETH is staked, restaked, deposited and/or looped through multiple protocols. This higher risk is reflected in the generally higher APY that holders of hyETH receive in comparison to dsETH.
Users can track their individual performance via the dedicated wallet tracker page on Dune. Here’s how:
Note: Running the query may require tokens. Users on the free plan have a limited number of tokens, while additional tokens can be purchased for extended usage.
Fluctuations in PT values can impact hyETH’s performance. Users can mitigate temporary losses by holding until PTs maturity or until market conditions improve. Before redemption, users should consider the current value of PTs and whether waiting until maturity or improved market conditions could result in a better ROI.
Indicative APY is a projected yield based on current component yields, while realised ROI depends on the actual performance of the underlying assets and the user’s entry and exit timing. Pendle PTs in particular can be susceptible to deviations like this.
See this dedicated article for understanding indicative APY versus realised ROI.
Unrestricted users can purchase hyETH and other Index Coop products via the Index Coop App.
You will have to connect your wallet and sign our terms and conditions before your first action. Make sure you are connected to Ethereum Mainnet and that you have sufficient funds in your wallet including ETH to pay the gas for the transaction. Then you can input the desired amount of input token and click ‘Swap’.
If you are having difficulty selling your tokens via the Index Coop app, double check the following:
If you are unable to troubleshoot your transaction, you can open a chat via the support widget in the bottom right corner of the screen to receive more support from our team.
No, the Index Coop App does not currently charge any fees. All fees are charged at the smart contract level.
No, there are no fees charged on issuance or redemption of hyETH.
hyETH incurs an annual fee of 0.95%, similar to an Expense Ratio in traditional finance. This fee is applied consistently throughout the year, calculated on a per-block basis.
For example, holding 1 hyETH for one year would incur a total of 0.0095 hyETH in fees for that year.
The indicative APY (Annual Percentage Yield) of hyETH represents an estimated yield based on the weighted average of its underlying components in real-time. However, the actual Return On Investment (ROI) may vary due to fluctuations in market conditions and entry/exit timings. This means that while the indicative APY may appear positive, short-term fluctuations in the value of Principal Tokens (PTs) can lead to temporary negative ROI, especially if the holder redeems their hyETH before the PTs mature or recover in value.
Users should be aware of the volatility of ETH before interacting with ETH denominated products such as hyETH.
LRTs, LSTs and Pendle PT tokens all trade on secondary markets and are therefore subject to price movements. Users should be aware that the performance of hyETH is dictated by the conversion value of these components to and from ETH. While the general trend is positive due to yield accrual inherent in these tokens, occasionally these conversion values may be less than when the position was entered resulting in a negative return on investment in ETH terms.
hyETH is built on Index Protocol, which has been audited extensively; that said, smart contract risk still exists for Index Protocol. hyETH relies on protocol-level integrations with Pendle, Instadapp, and Across, which have individualised smart contract and oracle risks that must be considered.
hyETH is unavailable to Restricted Persons as defined in our Tokens Restricted for Restricted persons page.
You shall not purchase or otherwise acquire our restricted token products if you are: a citizen, resident (tax or otherwise), and/or green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (defined as a U.S. person), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorised (together with U.S. persons, a “Restricted Person”).
No, restricted tokens from Index Coop are not available for Restricted Persons as outlined here.