Next week, Index Coop is set to launch dsETH: an index token that provides users diversified exposure to staked ETH while encouraging competition & decentralization within the liquid staking ecosystem
Key points:
dsETH provides holders with access to diversified, sustainable and less volatile liquid staking yield via a basket of the top ETH liquid staking tokens
The index will include Lido’s stETH, Rocket Pool’s rETH and StakeWise’s sETH2 at launch and will add additional liquid staking tokens as they meet the public inclusion criteria
The product’s methodology is designed to encourage competition within the space by favoring liquid staking protocols with more node operators, a balanced distribution of stake and lower fees
dsETH gives market participants a simple vehicle to support decentralized liquid staking derivatives without concentrating their risk in a single asset or issuing protocol
The hope that this ultimately translates to increased adoption of liquid staking, lower fees and better returns for holders, as well as a more robust, decentralized network.
Rocket Pool’s rETH, Lido’s stETH & StakeWise’s sETH2 will be included at launch
Notable Exclusions
Coinbase’s cbETH has not been included due to the noncompetitive fee of 25% of staking yield (versus 10% at other liquid staking protocols)
Frax’s frxETH has not been included due to centralization of node operators: all validators are currently operated by Frax’s core team
You can read more about dsETH: the Diversified Staked ETH Index on Index Coop’s governance forum
disclosure: OP u/theyoungcrews is on the core team of Index Coop, a DAO building on-chain structured products
