Index Coop took the opportunity to come out with its official announcement that, along with Gitcoin, they have managed to deliver the Gitcoin Staked ETH Index successfully. Specifically, this token is an index token that stores Ethereum liquid staking tokens. One of its modules naturally leans in favor of decentralization. It also happens to share a fraction of staking earnings with Gitcoin for the sake of public good funding. Since 2017, Gitcoin has received $50 million in donations, all of which have been used to fund public good projects.
"Index Coop launched a great new product, gtcETH, which speaks to me very nicely" — @thedailygwei's @sassal0x gives his thoughts on the @gitcoin Staked ETH Index pic.twitter.com/TLk49LlFLJ
— Index Coop 🦉 (@indexcoop) March 29, 2023
The Gitcoin Staked ETH Index is constructed with the use of the Index Protocol. This is a fork of Set Protocol v2 made in good faith. In this instance, gtcETH will adhere to the same robust foundation as $DPI, $MVI, and $BED, among other Index Coop products. Index Protocol has audit coverage comparable to Set Protocol. The core code has not been modified in any way.
At the time of delivery, the gtcETH will be made up of rETH (Rocketpool), wrapped stETH (Lido), and stETH2 (StakeWise). For it to play the role of a re-pricing token, there happens to be a requirement that its composition also be re-pricing. Streaming fees are the main attribute that allows a constant flow of contributions toward public goods. With the gtcETH token contract, this mechanism allows for a periodic fee to be levied on the index’s total value. There is a 2% annual streaming charge for gtcETH, of which 1.75 percent is being transferred to Gitcoin, and 0.25 percent is being transferred to Index Coop.
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There are five primary and compelling arguments in favor of using gtcETH. Ethereum’s public good funding mechanism is one such example. The second is the possibility of receiving financial compensation. In addition, there is a variety of liquid staking tokens. It improves decentralization for liquid staking systems and is easy to use.
gtcETH purchases are a practical means of recycling Ethereum’s public goods. Staking rewards can be earned in addition to holding and donating ETH through a positive-sum method given by gtcETH. Moreover, gtcETH has a variable amount of liquid staking tokens, which decreases the risk connected with individual tokens. Additionally, it is accessible and user-friendly.
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There are also the factors of passive holding and auto-rebalancing. Also, there is the aspect of evergreen indexing. gtcETH employs the dsETH methodology and promotes decentralization by rewarding liquid staking procedures for the support of additional node operators. gtcETH intends to enable token holders to connect with the leading ETH liquid staking tokens using a single token. Gitcoin on Uniswap v3 has contributed to the creation of two liquidity pools.
