Index Cooperative, the decentralized autonomous organization (DAO) behind tokens like the DeFi Pulse Index, has partnered with another DAO, Bankless, to launch a new crypto token called the BED index.
First proposed in February, the BED index contains an even split of bitcoin, ether and decentralized finance (DeFi), which will be represented by Index Coop’s DeFi Pulse Index (DPI).
According to Index Coop, BED and other crypto indexes offer an easy way for crypto newcomers to get diversified exposure to various assets in a way that is simple and transparent.
As decentralization becomes a bigger theme in crypto, DAOs are gaining momentum. They are collections of people and entities on the internet who band together to run a leaderless organization. They are essentially companies for a decentralized world.
And in the case of the BED index, what they’re offering is a traditional finance product – an index – for the nontraditional crypto markets.
Bankless DAO devised the methodology for the BED index, and will be responsible for monthly rebalancing as needed.
The BED index will be represented by a fully collateralized ERC-20 token and will be available for purchase on Uniswap v3, Index Coop and TokenSets.