As the liquid staking industry heats up in anticipation of anticipated ETH withdrawals in March, solutions to provide exposure to the variety of staked ETH tokens are developing. Index Coop, an Ethereum-based structured product design firm, has released a Diversified Staked ETH (dsETH) index, a tokenized technique that supporters claim would give consumers a more sustainable and less hazardous income.
Lido’s stETH, Rocket Pool’s rETH, and StakeWise’s sETH2 were among the dsETH
Holders of the dsETH Index can disperse their holdings over many liquid staking mechanisms. Lido’s stETH, Rocket Pool’s rETH, and StakeWise’s sETH2 were among the ETH liquid staking tokens mentioned in the Index’s inaugural launch. The Index excludes Coinbase’s cbETH and Frax’s frxETH, whose node the Frax core team entirely operates operators.
New LSDs may be added to the index, with a greater emphasis placed on more decentralized choices. According to Index Coop’s governance forum, decentralization is evaluated by the number of node operators and the distribution of staked ETH among those operators.
Since Ethereum was successfully Merged, the ecosystem has been concerned about the rising concentration of its blockchain. According to Rated Network statistics, Lido, Coinbase, Kraken, and Binance own 55% of all staked ether.
Rocket Pool’s Reth Presently Leads the index token allocation, about 41.20% of the total dsEth allocation.
Once a staking token is listed in the Index, it can be used as collateral on lending platforms like Aave — protocols will no longer need to hunt for integrations on their own.
Index Holders of dsETH will be charged a 0.25% yearly streaming fee by Coop.
dsETH is entering a competitive market
It’s difficult to dispute that dsETH is entering a competitive market – Lido, which releases stETH, is the most extensive protocol in DeFi. Recently, the sixth-largest lending mechanism in cryptocurrency accepted cbETH, Coinbase’s liquid staking service, as collateral.
Frax Finance have also introduced their LSDs. Index Coop has a history of developing new and creative DeFi tokens, but not all are commercial successes.
dsETH tokens will not available to users with US IP addresses
Due to regulatory concerns, dsETH tokens will not available to users with US IP addresses. However, the tokens will be traded on decentralized exchanges (DEXes) such as Uniswap.
