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Leveraged Staked ETH (icETH)

Leveraged Staked ETH (icETH)

Please review the risk warning at the bottom of this article and carry out your own research before investing icETH via the platform.

icETH Overview

Index Compounding ETH (icETH) is an Index Coop product that aims to provide exposure to a leveraged long liquid-staked ETH position, which targets a leverage ratio of a 3.1 multiple of the standard underlying staked ETH yield.

Lido Finance liquid-staked Ethereum tokens (stETH) are deposited into the AAVE V2 protocol as collateral in order to borrow additional ETH, which is then staked with Lido Finance to procure more stETH. As a result, icETH token-holders have spot exposure to ETH and nearly twice the yield they would receive by simply holding stETH in isolation. The yield on icETH is variable as it is subject to staking rates and borrowing costs on the AAVE V2 Protocol.

icETH Risk Warning

When you stake your ETH for icETH on you are exposing yourself to certain risks, which include but are not limited to:

Lido Finance staked ETH smart contract risk.
Index Coop icETH smart contract risk.
Aave V2 Protocol smart contract risk.
Lido DAO security and key management risk for the treasury that controls the stETH staked on the Ethereum Network.
stETH validator slashing risk.
stETH may trade lower or higher than un-staked ETH due to demand fluctuation, liquidity or technical constraints.

More information on icETH risks can be found on the Index Coop website:

Updated on: 02/03/2023

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