NEW YORK, August 10, 2022 /PRNewswire/ — Index Coop announced the launch of the Market Neutral Yield Token MNYe (pronounced “money”), a tokenized strategy that gives holders access to a compelling source of USD-denominated returns by providing a base trading strategy on optimism of the Perpetual Protocol executes market.
MNYe allows holders to earn a variable return, settled in USD, that is not dependent on protocol inflationary incentives and has no price risk versus Ethereum. This is Index Coop’s first product to be released on Optimism’s Ethereum Layer 2.
Index Coop announces launch of Market Neutral Yield Token (MNYe).
The Market Neutral Yield Token democratizes a basic trading strategy most commonly performed by hedge funds and seasoned finance professionals. The MNYe token simplifies this complex trading strategy into a simple erc20 token that is liquid on optimism and composable across the network’s growing DeFi ecosystem.
Basis trading, also known as cash-and-carry arbitrage, is a well-established strategy for generating a price-neutral profit by arbitrating the difference between an asset’s price in spot and short-term futures markets. In DeFi, perpetual swaps — also known as perpetuals or perps — can be used in place of futures. First implemented by BitMEX, perpetuals are futures with no settlement date.
The MNYe product simultaneously takes long spot and short perpetual positions and derives the return from the funding rate generally paid by long perp positions to short perp positions. By taking a fully hedged position, the product has no net asset price risk. MNYe will use a 1x long ETH spot position and a -1x short ETH perp settled in USD. The return is further enhanced by auto-compounding three times a day when the USD funding balance is positive. Yield is used to maintain leverage between -1x and -2x.
MNYe is Index Coop’s second return product after the Interest Compounding ETH Index (icETH) and fulfills the mission of creating decentralized finance products that unleash wealth for all.
About the index cooperative
The Index Cooperative is a decentralized community that operates crypto index products that can be purchased on a blockchain. Index Cooperative’s structured products offer one-token exposure to popular crypto themes such as decentralized finance, the Metaverse, blue-chip NFTs, and revenue-generating strategies such as Ethereum staking.
Index cooperative press contact: [email protected]
Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial or any other advice. Any purchaser of an Index Coop product should seek advice from his/her own investment, legal and tax adviser(s) before purchasing. Index Coop token products will not be marketed or offered to any person or entity who: is a citizen of, is a resident of, is resident in, is incorporated in, or has a registered office in the United States of America (collectively defined as “US Persons”). If you are a US person, do not use Index Coop tokenized products. Our website restricts trading of these tokens by US persons.
SOURCE Index Cooperative
Comments are closed.