Index Coop Launches New Product to Provide Exposure to Top Liquid Staking Derivative Tokens

Coop recently launched a new product that provides exposure to the top liquid staking derivative (lsd) tokens on the market. the diversified staked eth index (dseth) was created to offer exposure to lido finance’s steth, rocketpool’s reth, and stakewise’s seth2 tokens. the index is weighted between each lsd token based on how well each project has decentralized their respective node counts.

Launch of the dseth index happened in february 2021. it is expected to generate up to $4,000 a month in revenue from streaming fees of 0.25%. the product was launched in order to make it easier for first-time lsd investors to get into the red-hot staked ethereum market.

Index was created in order to ensure that investors would not lose their entire portfolio if one of the staking platforms got hacked. the team will likely still have to edit the weightings of their product, and they plan to add a fairness score for rated in a future update. the product could lead to greater adoption for all staking products if there is enough investor demand. lido currently holds nearly 30% of the ethereum staked, whereas coinbase and kraken hold 12% and 7%, respectively. rocketpool holds a mere 0.44%.

By Evey Lovelace

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