HomeCoinsIndex Cooperative (INDEX)Beta Finance Partners with Index Coop to Allow Users to Lend, Borrow,...

Beta Finance Partners with Index Coop to Allow Users to Lend, Borrow, Short DPI, MVI, BED, and ETH2x-FLI | by Beta Finance | The Index Coop | Nov, 2021

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Beta Finance

We are thrilled to announce that Beta Finance has partnered with Index Coop to launch one of the first integrated money markets for diversified index tokens DPI, MVI, BED and ETH2x-FLI on November 24 at 1 PM UTC. The partnership will allow users to earn rewards by lending, borrowing, and shorting Index tokens directly on Beta Finance’s platform.

This integration provides a unique opportunity for index token holders to bolster their capital efficiency on their assets by providing liquidity to new Index Coop markets with low risk. By lending Index tokens on Beta Finance, users can transform their long positions into active yield generating positions through earning interest from borrowers on Beta Finance and Beta Finance’s liquidity mining rewards.

With Beta Finance’s one-click short automation, Index token holders can mitigate risks associated with long exposure by shorting Index tokens. Investors maintain their original token holdings while protecting profits in the highly volatile crypto investing environment.

Beta Finance aims to offset excessive crypto volatility and facilitate the long-term healthy adoption of DeFi. At our core, we are a permissionless money market coupled with an automated short-selling tool that allows users to hedge their risk against price volatility.

Like in traditional finance, short selling is a critical piece of financial infrastructure used for many fundamental risk management strategies for crypto investing. With Beta Finance, investors can hedge risk against the extreme crypto price volatility through Beta Finance’s “1-Click” short.

Index Coop aims to make crypto investing simple, accessible, and safe by collaborating with industry experts to develop the most trustworthy crypto indices in the Defi ecosystem. Users can invest in Index Coop’s reliable index funds to own a more diversified crypto portfolio and hedge risk in the highly volatile and speculative crypto landscape. DPI, MVI, BED, and ETH2x-FLI index tokens are currently purchasable through Index Coop.

The DPI, MVI, BED, and ETH2x-FLI markets were able to be permissionlessly created on Beta Finance, by following four simple steps:

  1. Enter the address of the token to be listed in the search bar.
  2. Click “Create Asset” to initiate the process for listing.
  3. Initialize the Uniswap V3 TWAT to 150 slots
  4. Click “Create New Market” to complete the creation of the market.

Beta Finance has partnered with Index Coop to further incentivize the permissionlessly created markets by displaying them on the main “Markets” page and distributing incentives for lenders, borrowers, and short sellers. To give users an overview of these tokens:

  • DeFi Pulse Index Token (DPI) is a digital asset index designed to track tokens’ performance and usage across the DeFi market. DPI is a capitalization-weighted index, meaning the index is weighted based on the value of each token’s circulating supply. Some of the tokens in this index are UNI, AAVE, LRC, and MKR. Here is the full list of tokens included in DPI.
  • Metaverse Index Token (MVI) is engineered to capture the worlds of entertainment, sports, and businesses by tracking their digital shifts on the Ethereum blockchain. Some of the tokens in this index are ILV, AXS, MANA, and SAND. Here is the full list of tokens included in MVI.
  • Bankless BED Index (BED) tracks the crypto world’s most investable assets — BTC, ETH, and DPI — in a neutral construction. This configuration seeks to offer users safe and passive exposure to crypto investing the three most investable assets in equal weight.
  • Ethereum 2x Flexible Leverage Index (ETH2x-FLI) allows users to leverage a collateralized debt position safely and efficiently by abstracting its management into a simple index. The index is designed to help users take on leverage while minimizing transaction costs and risks associated with maintaining collateralized debt.

Lenders will be able to lend their DPI, MVI, BED, and ETH2x-FLI tokens on Beta Finance to earn additional yield from the lending interest rate and additional liquidity mining incentives. Interest is paid to lenders from borrowers and short sellers of the Index tokens that pay a premium for borrowing assets for leverage or short selling assets for trading and hedging strategies.

For a full guide on how lending, borrowing, and short selling work on Beta Finance refer to the guide here. Briefly, lenders are able to deposit on Beta Finance in two simple steps:

  1. Enter the amount to lend out.
  2. Click “Deposit” to initiate the position.

And borrowers, follow two simple steps for initiating a borrow position on Beta Finance:

  1. Select the collateral and enter the amounts for your position.
  2. Click the “Borrow” to initiate the position.

And finally short sellers, follow three simple steps for initiating a short position:

  1. Select the collateral and enter the amounts for your position.
  2. Select the DEX (Uniswap V2, Uniswap V3, or Sushi) that you wish to swap through.
  3. Click the “Short” button to initiate the position.

There are many interesting ways to leverage Beta Finance’s capabilities with the new Index Coop tokens for DeFi users, and here’s a few!

  • Want to catch the metaverse trend but don’t know what to do? Hold the MVI token and lend it out on Beta Finance to earn additional yield while maintaining your exposure!
  • Own BTC, ETH, and DPI already? Hedge your exposure by shorting the BED token rather than initiating multiple shorts for each holding.
  • With ETH2x-FLI, Beta Finance now enables people to easily take a 2x leveraged downside short position without having to worry about compounding collateralization!

We’ll continue to keep the Beta Finance community updated through our socials, so be sure to follow us on Discord, Twitter, and Telegram!





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