Index Cooperative (INDEX) is a decentralized autonomous organization that operates as an entity in the cryptocurrency space. INDEX is the governance token of the Index Cooperative, representing a stake in the organization's future activities. The token is based on the Ethereum blockchain and follows the ERC-20 standard. The maximum supply of INDEX tokens is capped at 10,000,000. INDEX token holders can participate in the governance of Index Cooperative by voting for or against proposals. They may also receive INDEX rewards by contributing to the growth and sustainability of the organization or by providing liquidity for Index Cooperative products on decentralized exchanges.

Index Cooperative works by issuing its own native token, INDEX, which is used for governance within the organization. The cooperative strives to simplify access to risks and returns in the cryptocurrency market by providing a range of products that aim to abstract complex strategies into a single digital asset. These products include sector indices for diversification across cryptocurrency sectors, leverage tokens for accessing complex trading strategies, and yield tokens for automating on-chain yield generation strategies. INDEX token holders can participate in the decision-making process by voting on proposals, thereby contributing to the growth and sustainability of the cooperative.

Index Cooperative seeks to provide a platform for individuals to gain exposure to the most important themes in the decentralized finance (DeFi) space. The cooperative's products strive to simplify access to complex strategies in the cryptocurrency market, making it easier for both retail users and institutions to participate. INDEX token holders can use their tokens to vote on proposals, thereby influencing the direction of the cooperative. They may also receive INDEX rewards by contributing to the cooperative's growth and sustainability or by providing liquidity for its products on decentralized exchanges.

Index Cooperative was launched as a decentralized autonomous organization (DAO) by Set Labs on October 6th, 2020. Since its inception, the cooperative has evolved significantly, with a small group of core contributors and a larger community of product holders, INDEX holders, and supporters. As a DAO, Index Cooperative operates within the realm of decentralized finance, leveraging its decentralized network of contributors to build simple, accessible, and secure on-chain structured DeFi products.

New index funds within Index Cooperative are created through a community-driven process. INDEX holders are responsible for sourcing, developing, and supporting new index strategies that have broad market appeal. This includes determining how to best allocate constituent assets for achieving community-determined objectives. The creation of new index funds is therefore a collaborative effort involving crypto experts, traditional finance experts, and the broader community. The goal is to develop indices that align with community objectives, providing facilitated exposure to sectors without the need for individual token acquisition, methods to hedge against a particular sector, and potential interaction with an asset class for a broader audience.

INDEX serves as the governance token of the Index Coop. INDEX token holders collectively propose and vote on new product development, resource allocation, and the future direction of the DAO. The influence of a community member in decision-making processes is associated with the number of INDEX tokens they hold, with each token representing a vote. Beyond contributing to Index Coop proposals, INDEX holders have the opportunity to participate in 'metagovernance,' contributing to proposals of other protocols. This is possible for a subset of the protocols held in the DeFi Pulse Index (DPI). The INDEX token has a predetermined supply limit and is subject to a 3-year distribution schedule.

Index Coop provides a variety of index funds that cater to different participation strategies and risk tolerances. These include sector indices, leverage/inverse tokens, and yield tokens. Sector indices aim to provide diversification across cryptocurrency sectors, with continuous 24/7 participation and time, gas, and tax efficiencies. Leverage tokens aim to provide participants with access to complex participation strategies with automated risk management. Yield tokens aim to automate on-chain yield generation strategies, striving for continuous access with reduced transaction costs. Known index products include the DeFi Pulse Index (DPI), which tracks known DeFi protocols, the ETH2x-FLI for exposure to ETH, and the icETH for leveraged ETH staking. The Metaverse Index (MVI) aims to capture the trend of entertainment, social activity, and business moving to virtual economies, powered by NFTs and blockchain technology. Each index fund has its distinct methodology and token inclusion criteria, providing a range of options for different participation preferences.

The INDEX token serves as the governance token for the Index Cooperative DAO. It does not directly provide fee discounts to its holders. Instead, it enables holders to participate in the governance of the Index Cooperative, which encompasses a range of areas such as the introduction of new products, modifications to existing products, external protocol governance, and treasury allocation decisions. This implies that while INDEX token holders do not receive direct fee discounts, they do have a voice in decisions that could potentially influence the operation of the Index Cooperative. It's crucial to understand that the role of the INDEX token as a governance token may influence its market dynamics, which are subject to various factors including governance decisions and the overall operation of the Index Cooperative.

Index Cooperative aims to ensure the security and integrity of its products through a multi-faceted approach. This includes physical security measures, information security protocols, and robust data management practices. Physical security measures strive to protect the infrastructure and equipment from theft, vandalism, natural disasters, and accidental damage. This involves solid building construction, reliable power supplies, adequate climate control, and appropriate protection from intruders. Information security protocols are implemented to safeguard sensitive data from unauthorized access, modification, or deletion. This includes encryption, transmission of data with protective measures, and stringent access controls. Robust data management practices are employed to ensure the integrity of data. This involves regular data backups, data storage with protective measures, and timely and thorough disposal of data. It's important to note that these mechanisms are subject to ongoing review and updates to address emerging threats and vulnerabilities in the rapidly evolving cryptocurrency landscape.