The arrival of EigenLayer restaking has opened up new yield alternatives for Ethereum holders. A handful of protocols now present liquid restaked ETH, juicing returns for many who know the place to look.
A brand new product from Index Coop goals to bundle these yields into an index token for straightforward entry and built-in diversification.
The Excessive Yield ETH Index (hyETH) set to launch subsequent month, combines right into a single token 5 yield methods that meet minimal APY and complete worth locked (TVL), amongst different standards, utilizing open-source, audited protocols.
To check demand for such a product, Index Coop devised a points-inspired bootstrapping mechanism referred to as Product Income Tokens (PRTs).
Learn extra: DeFi ‘factors’ farming has reshaped the crypto funding panorama
Index set a 30-day objective of 500 wstETH (Lido wrapped staked ether) on April 8 — about $1.8 million — on the time, however blew by way of that concentrate on in lower than a day. After reaching the minimal to launch hyETH, deposits have since doubled.
“It has exceeded our expectation,” the ecosystem progress lead at Index Coop, who goes by Crews.eth, informed Blockworks.
PRTs can solely be earned by depositing into the hyETH pre-sale contract, and gained’t be distributed till the product launches.
“It’s undoubtedly impressed by the recognition of level programs, however we choose to offer individuals an actual ERC20 token on-chain fairly than simply holding factors in an off-chain database,” Crews stated. “And we choose to direct actual yield from product income to the holders of these PRT tokens.”
As with many initiatives to supply structured merchandise on-chain within the wake of Securities and Change Fee enforcement actions, Index Coop merchandise are solely accessible to buyers outdoors the US.
Index plans to distribute 30% of the ten,000 PRTs to individuals within the hyETH presale, with the remaining 70% going to the Index Coop Treasury.
Prior product launches have tended to share income 60/40 between the coop and a methodologist associate, just like the DeFi Pulse Index (DPI).
Index then used its personal governance token (INDEX) to incentivize liquidity into its merchandise.
“Individuals require social proof after they need to deposit into a brand new product, so it’s actually good to not have a product that, like, struggles to interrupt by way of that first million {dollars} deposited,” Crews defined.
But it surely discovered that the partnership mannequin was finally unsuccessful, Crews stated, citing for example the Bankless BED Index, which has fewer than 800 token holders and $800,000 in TVL, in accordance with Etherscan.
The cooperative nonetheless plans to finally direct protocol income to INDEX holders, however solely after constantly breaking even, he stated.
PRT holders should stake their PRTs to share within the income of the brand new product post-launch.
“Customers need to see and know that they’re being rewarded for his or her contributions and utilizing a protocol,” Crews stated. “You need the person to grasp that you just admire them being an early mover, an early adopter and risking their capital into an up-and-coming product.”
