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Table Of Contents
Index Cooperative (INDEX) operates as an asset management collective. The INDEX token serves a vital role in the community governance systems of the network. Notably, DAOs (decentralized autonomous organizations) are more popular than ever because they improve transparency and provide a voice to their community.
Index Coop is a blockchain-based asset manager that provides autonomous trading services. The protocol streamlines the creation and use of crypto indexes. An index is a token designed to track the value of a set of assets.
Indexes are very flexible, which makes them ideal for traders seeking large-scale exposure to the market. For example, you could have an index that tracks the top 10 cryptocurrencies or the top gainers for the month. Notably, the Index Cooperative currently has $400 million in assets under management.
What Problems Does Index Cooperative Attempt to Fix?
The Index Cooperative helps to eliminate some of the pain points that have slowed crypto adoption for years. The project provides a streamlined onboarding process by streamlining the entire investment process. Index tokens provide users with a simple way to gain exposure to the market by compounding them into a single asset.
New User Confusion
The protocol helps to connect the key players in the market. Finance professionals, engineers, DeFi experts, content creators, and crypto enthusiasts can create their own indices without any previous technical experience. Additionally, the system helps users maintain their ROIs via rebalancing features. Rebalancing is a service that automatically tracks and adjusts your portfolio to meet your preset criteria.
Lack of Security
Another major concern from crypto traders was security. The Index Coop integrates a variety of features to improve trader protections. For one, the network is fully collateralized and has undergone numerous third-party code audits.
Benefits of Index Cooperative (INDEX)
There are many benefits that Index Cooperative brings to the market. Users can secure exposure to a variety of assets and markets without the need to spend time collecting assets individually. This strategy helps to reduce the costs of trading. Users save as the rebalancing actions provide lower fees than trading your portfolio daily.
Assess the Market State
Another major advantage of Index Cooperative is that it provides traders with simplistic and efficient ways to see the state of the market. Users can create indexes that help to track the market’s movements. A trader could have an index that tracks specific aspects of the market like smart contract programmable networks or DeFi protocols.
Users can secure more consistent returns using an Index Fund. Index Funds are more resistant to volatility because they are diversified. The more diversified your index funds and the more stable they will be compared to single assets. Additionally, the use of indexes helps to secure more consistent returns.
The Index Cooperative provides users with decentralized options to improve their returns. The network is fully distributed which adds to the security of the network. Even the governance of the protocol is handled by the community which provides a higher level of transparency to the market.
How Does Index Cooperative Work?
The Index Cooperative works by providing users with an easy-to-navigate alternative. Users start by creating or using an index that is available. Once you have the assets you want in your index, you can set up our rebalancing features. The rebalances occur daily which makes it easy to automate your trading strategy.
The rebalancing options mean that the index will autonomously add or remove platforms based on their performance. This ensures that your portfolio will remain with the top-performing DeFi options regardless of the change that occurs in the market positioning of assets. Rebalancing is one of the best options that help new traders to improve their ROIs.
DeFi Pulse Index (DPI)
The DeFi Pulse Index (DPI) is the first and main index offered by the Index Cooperative. This capitalization-weighted index enables users to gain exposure to the top-performing DeFi protocols in the market. The index is set up to scan the market to find top-performing platforms based on market cap or other preset indicators.
INDEX is the main governance token for the system. This token serves a crucial role in all the voting and governance-related options available to users. If you want to gain more control over the future developments of the network, you simply need to hold more INDEX tokens. Notably, there is currently 2,871,210 INDEX in circulation, out of the total 10,000,000 slated for release over the life of the project.
The system works by enabling users to put forth proposals and vote on changes to the network. The system uses the Snapshot protocol to provide secure voting options. Voters gain more say by holding more INDEX tokens. This approach helps to keep those who are invested in the protocol with the most leverage in the voting process.
The Index Cooperative entered the market on October 7th, 2020. The protocol joined the sector during the rise of the DeFi movement. As such, it makes sense that its first public Index is the DeFi Pulse Index. The network continues to see growing adoption due to its simplicity and efficiency.
How to Buy Index Cooperative (INDEX)
Currently, Index Cooperative (INDEX) is available for purchase on the following exchanges.
Gemini – This exchange was founded in 2014, and operates as a regulated New York Trust Company. Additionally, Gemini was one of the first recipients of what the State of New York calls a ‘Bit License’, allowing the exchange to operate within its borders.
Using Index Cooperative to Profit
Anyone who wants to gain more exposure to certain aspects of the blockchain economy can do so simply by using the Index Coop. This flexible platform empowers users to diversify their holdings and secure more consistent returns. The network’s combination of easy-to-navigate features and proven success make it a popular option for traders seeking a broader stance in the market. As such, you can expect to hear more from Index Coop moving forward.
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