Index Coop: Creating the Best Crypto Indices
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This difficulty can be fixed by investing in a crypto index fund, which works similarly to an exchange-traded fund (ETF) like the S&P 500.
According to Morningstar Inc. data, the ETF industry's asset value reached $9 trillion in August 2021. These numbers will rise as more investors enter the market, and market participants who don't have the time to manage their portfolios or keep up with rapidly changing market circumstances will continue to favour ETFs.
According to Coingecko, the crypto sector is currently a $1.98 trillion market, with just 231 million dollars of assets under various crypto indexes.
A crypto index fund essentially assists you in investing in a basket of top cryptocurrencies while removing the burden of filtering and managing an ever-growing basket of cryptocurrencies.
A crypto index fund also helps you diversify your money among a large number of assets, lowering your concentration risk.
Index Coop is the first community-led decentralized organization to enable the creation and adoption of crypto indexes. Index Coop has various products, they provide easy access to various crypto investment themes, tax-efficient buy and hold cryptocurrencies methods, Best-in-class analysts and technology to rebalance the indices.
Various Products supported by Index Coop
DeFi Pulse Index token (DPI)
The DeFi Pulse Index is a capitalization-weighted index that analyses the overall performance of decentralized financial assets. The DeFi Pulse Index is a digital asset index that tracks the performance of tokens in the Decentralized Finance space.
The circulating supply of each token is used to weigh the index. The DeFi Pulse Index is designed to keep track of Decentralized Finance protocols with a high level of usage and demonstrate a commitment to continuous maintenance and development.
Metaverse Index (MVI)
The Metaverse Index was created to track the trend of entertainment, sports, and business moving to a virtual world, with economic activity taking place on the Ethereum blockchain.
This is the first index product developed entirely within the Coop community, without the assistance of third-party methodologies.
Flexible Leverage Indices (FLI)
The Flexible Leverage Indices reduce collateralized debt management to simple indices that may be replicated using ERC-20 tokens based on the Set Protocol.
FLI tokens allow you to have leveraged exposure to specified assets through collateralized debt without having to manage or monitor liquidation risks.
DeFi Pulse is the methodologist behind the Flexible leverage indices.
DATA Economy Index token (DATA)
The DATA index is a collection of seven tokens meant to enable easy, passive access to the data economy, the second major Web3 sector. A digital ecosystem for collecting, storing, and selling data is known as the data economy.
Filecoin (FIL), the Graph (GRT), Basic Attention Token (BAT), Livepeer (LPT), Ocean Protocol (OCEAN), Numeraire (NMR), and Chainlink (LINK) are all included in this index.
Bankless DeFi Innovation Index (GMI)
The Index Cooperative launched the Bankless DeFi Innovation Index, a simple composite index. The index focuses on early-stage DeFi projects with strong growth potential but isn't yet labelled 'blue chip.'
GMI determines the best weighting of tokens by combining square-root market cap, relative secondary market liquidity, and relative token dilution/emission scoring.
Where these tokens can be bought?
Tokenomics
The INDEX is a governance token that can be used to vote on Index Coop modifications. INDEX holders can vote on Index Coop smart contract upgrades, new Index Coop products, and the distribution of the Index Coop treasury, among other things.
$INDEX has value as a governance token that may be used to vote on Index Coop improvement protocols (IIPs), decide how we spend our treasury and vote on meta-governance ideas relating to underlying tokens stored in $DPI and future index products. Because it is distributed to individuals who contribute to the advancement of Index Coop, $INDEX should be considered a 'proof-of-work' token. $INDEX adds value by concentrating on decisions that benefit the Coop in the long run.
The token distribution of INDEX token is as follows:
Conclusion
Crypto Indexes are still used by a small number of investors in the crypto market. Only around 200 Million dollars of cryptocurrencies are under various crypto indexes while the cryptocurrency market cap is around 2 Trillion dollars. This shows that the crypto index sector is still so small, and in coming years we will see cryptocurrencies under crypto indexes will increase.
