Collider Ventures
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Collider Ventures

Buying Index Coop Tokens

Disclaimer: This is not financial or investment advice. We hold financial exposure to Index tokens and strongly advise you to do your own research

During the last few months Collider Ventures has been purchasing Index Coop tokens and has established a long term $INDEX position. We believe Index Coop is positioned to become one of the most significant DeFi DAOs in the next few years.

What is Index Coop?

Index Coop is a DAO that creates crypto-native index and structured products that allow users to access sophisticated crypto strategies passively. They are the dominant player in the DeFi Index space (which is still a niche market) with $95m AUM and 15 traded products.

Index designs and mints ERC20 tokens that hold a basket of underlying tokens, offering exposure to different crypto and web3 strategies. The flagship product for Index Coop is the DeFi Pulse Index (DPI), a basket of blue-chip DeFi tokens weighted by market cap.

Select Index Coop products
Select Index Coop products

As the market for digital assets expands exponentially, there is a growing design space for different themes and strategies that Index can generate and offer its users.

Some existing examples:

  • Gain Metaverse assets exposure with $MVI
  • Gain general crypto exposure with $BED

The economic model for Index is based on streaming and redemption fees. For example, DeFi Pulse Index has 0.95% streaming fees per year which flows into the DAO treasury. Since inception (Oct-20), ~$3.9m worth of fees have been generated by Index various products.

Why do we need Index Coop?

There needs to be a compelling and safe way for users in web3 to gain exposure to crypto products and strategies. Index’s token products enable users to gain passive exposure to crypto themes and strategies, while also preserving tax and cost efficiency (indexes are auto rebalancing).

Index created a unique go2market model, where a methodologist (a partner for the DAO) designs the product methodology and helps with distribution, in return for some of the streaming fees. Some of Index Coop methodologists include Bankless, Defi Pulse, Meta Portal and D4.

This model leverages strong networks to create a wide distribution based on crypto partners, Which we believe is the most efficient way for protocols and communities to grow in web3.

This April, Gemini listed the Index and DeFi Pulse Index tokens on its exchange (first crypto index token to be listed on a centralized exchange). Users can purchase the different products of the Coop on Uniswap or directly throughout the Coop website interface. Index token is also traded on Coinbase.

Index Coop has also just introduced the Flash Mint SDK, a SDK that enables dApps & DEXs to mint & redeem Index Coop products for their underlying products more efficiently for their users.

Index Coop has the opportunity to eventually manage billions in $AUM — they have a wide product suite for passive strategies, dozens of new products in the pipeline, killer team and alumni, great distribution channels and partners, and most of all — the Index Coop brand.

We’ve notified the Coop that we have purchased tokens, and are willing to help with any further development of the DAO. We feel there is a massive opportunity for the DAO to leverage the bear market for strengthening its products and community.

Bear markets are the best time to keep building and refining products towards the next adoption wave, and we believe Index Coop is perfectly positioned for this.

Just keep building.

🦉🦉🦉

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Idan Levin

Idan Levin

Economics, crypto & tech. Building the digital economy