Introducing the Trackr Liquid Staking Index (TLS)
Liquid staking and restaking is booming. The sector has grown at a compounded annual growth rate of 100% and in total has accumulated over $50bn of TVL, making it the largest segment of DeFi.
Liquid staking is a major contributor to the security profile of Ethereum, the Layer 2s that rely on it, as well as alternative EVM blockchains like Polygon and Avalanche. The popularity of this segment is unquestioned with 1 in every 2 staked ETH being deposited into a liquid staking protocol.
Liquid restaking increases the productivity of staked ETH by repurposing it to support external systems (e.g., rollups, oracles) with an economic security layer. This helps solve the cold start problem that new networks face whilst also increasing the yield of staked ETH.
The Trackr Liquid Staking Index (TLS) will provide complete coverage of the major liquid staking and restaking tokens from across the EVM ecosystem through a single token. The index will be yield weighted ensuring that the highest yielding assets receive the largest allocation. A maximum weight of 15% is applied to each asset to promote diversification.
The index will be rebalanced quarterly to adjust the composition of assets and ensure that the index continually adapts to changes in the sector.
Index Composition
At launch the index will be comprised of 9 assets across 3 chains and will generate an estimated yield of 3.88%, in addition to the return of the underlying asset. With an increasing number of restaking opportunities coming to the market, we expect the overall yield of the index to increase. The assets within the index have a combined market cap of over $40bn accounting for 80% of the entire liquid staking sector.
Benefits of the Trackr Liquid Staking Index
TLS offers holders the following benefits:
Diversified exposure to liquid staking and restaking
TLS will automatically allocate capital across 3 different chains to the top liquid staking and restaking protocols . This spreads your risk and reduces your reliance on any single provider. In addition, it smoothes out the volatility associated with both the price and yield of any single token.
Higher yields
TLS is the first index to provide exposure to liquid restaking tokens which will amplify the yield of existing liquid staking tokens. In addition, the index’s multi-chain approach allows it to access higher yielding opportunities on other chains, increasing the overall yield of the index.
Low cost access
TLS is based on the Arbitrum network ensuring users can mint and redeem with low gas costs. In addition, TLS excludes assets that reside on Ethereum, further decreasing operational costs.
How to buy
The Trackr Liquid Staking index is live on Arbitrum and available to buy through the Trackr website. TLS will be the first index to benefit from our innovative cash reserve system built directly into the index, keeping minting and redemption costs low.
In addition, the Ethereum Dencun upgrade, which has reduced Layer 2 transaction costs by up to 98%, ensures users are receiving the cheapest possible access to the index’s primary market.
Reach out
We will be releasing further updates and additional information over the coming weeks and welcome all feedback and involvement from our community.
If you are integrating and wish to get in touch, reach out in the community Discord.
To get involved and stay up to date:
- Join the Trackr community Discord
- Follow Trackr on Twitter
- Check out our documentation
Trackr Team
Disclaimer: The Trackr website and products available through it are not available for users residing in the United Kingdom or United States.
