We’ve partnered with Index Coop to give you a new way to earn on your ETH.
It’s called the Diversified Staked ETH Index (dsETH), an index of the leading Ethereum liquid staking tokens, like Lido’s stETH and Rocketpool’s rETH.
Here's a quick overview.
What is Index Coop?
Index Coop is a community-led project that creates crypto indexes. A crypto index is a collection of different tokens bundled together with a specific focus, like DeFi (DPI) or the Metaverse (MVI). This lets you gain exposure to a sector without betting on individual tokens.
What is the Diversified Staked ETH Index (dsETH)?
The Diversified Staked ETH Index (dsETH) is the latest Index Coop product focused on Liquid Staking Derivatives. Liquid Staking Derivatives are the tokens received from protocols that allow you to stake ETH without running a validator, like Lido or Rocketpool.
The objective of dsETH is to give token holders diversified exposure to liquid staking tokens with weightings that favor decentralized liquid staking protocols. Any rewards and incentives from the tokens within dsETH will regularly get added to the value of dsETH. As a user, you don’t need to do anything as this process is automatic.
How to buy dsETH in Argent
It couldn’t be easier to own dsETH in Argent on zkSync:
- Tap ‘Invest’
- Tap ETH within ‘Earn on tokens you hold’
- Select ‘Diversified Staking’
- Enter the amount of ETH you would like to invest
- Tap ‘Review’
- Tap ‘Buy’
Shortly after, your transaction will be confirmed with your dsETH arriving in your wallet.
Alternatively, you can watch this short video showing you how purchasing dsETH in Argent is:
Fees
Index Coop does not charge a commission or performance fee for dsETH. Instead, there's a 0.25% annual streaming fee. This charge is automatically removed from your returns.
We use DeFi pooling to bring liquidity from Layer 1 to zkSync, which means you’ll pay a small gas fee to cover your share of the Ethereum transaction needed to rebalance the pool.
There are also zkSync network fees which will cost no more than $0.50.
Further information
Risks
The price of liquid staking tokens like dsETH and stETH relative to ETH can fluctuate. They are not equivalent in value.
Index Coop products have different risk exposure, but there are shared risks to many DeFi protocols, including smart contract, counterparty, and market failure risks.
Calculating APY
The percentage return on staked ETH will depend on the total staked ETH in the network. APY decreases when the total amount of staked ETH is increased.
The current APY will always be shown in the Argent app or on the Index Coop website.
How dsETH access works via Argent on zkSync
ZkSync is just getting started and smart contracts are coming with version 2.0 in 2023 - until then, we’ve partnered with leading DeFi providers to bring a selection of popular investment options and utilize atomic swaps on zkSync - a trustless, peer-to-peer way to swap tokens between two parties.
Disclaimer: This blog post is for informational purposes and is not financial advice. Investing in cryptocurrencies and DeFi involves risk and can result in you losing money.
Further reading
- Introducing the Diversified Staked ETH Index (dsETH)
- Understanding the Diversified Staked ETH Index (dsETH)
- Diversified Staked ETH (dsETH) by Index Coop - Dune Analytics dashboard
- On Staking Pools and Staking Derivatives - by Paradigm
- What is zkSync?
