Index Coop

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Index Coop builds tokenized index, yield, and leverage products on Ethereum, Base, and Arbitrum. At the 2026-08-15 survey the tracked products held about $10.1M, far under our $100M materiality line. Rejected on size: one practice advising 100 households moves $1M to $8M into a venue on the same research, and below $100M TVL that book becomes the exit crush. Size alone decides it, whatever the protocol’s quality.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days

The research file

Mechanism applicability

Index Coop packages onchain asset-management strategies into ERC-20 products. Current products include collateralized index and yield tokens plus leverage tokens that deposit collateral into Aave or Morpho, borrow against it, and rebalance within specified leverage bands. This is the surveyed Index Coop product perimeter; its aggregate size, not a judgment that all products share one risk profile, triggers the shared v1 below-materiality dossier.

Current observation and perimeter

The DefiLlama protocol API read on 2026-08-15 classified Index Coop as Indexes and reported approximately $10.12M across Ethereum, Base, and Arbitrum. The current product site reports roughly $16.5M of broader exposure, while current documentation lists live leverage products on all three chains. The registry now includes Arbitrum and uses the narrower survey TVL consistently for the class test.

Control and exit applicability

Index Protocol uses product-specific manager and strategy-extension contracts alongside issuance, redemption, fee, lending, oracle, and exchange modules. Managers can operate rebalances and configured parameters, and leverage products inherit liquidation, borrow-rate, oracle, and DEX execution risk. Non-leverage products can be redeemed permissionlessly for underlying components even without the app; leverage-token exits must also unwind debt and can incur issue, redeem, borrow, and market-execution costs.

Why the class rule decides

At about $10.12M survey TVL, a $1M to $8M advised book would still be a material fraction of the tracked system, before product-specific market depth and debt unwind are tested. The shared v1 below-materiality dossier therefore decides. Reopen after DefiLlama TVL remains above $100M for 30 consecutive days, then review each proposed token separately for methodology, manager powers, collateral and leverage, incidents, proposed-size mint/redemption depth, legal access, and named simpler alternatives.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Index Coop — current products and mechanism · primary · accessed 2026-08-15
  Supports: current product lifecycle, index products, leverage mechanism, Aave integration, fees
• Index Coop — leverage suite deployments · primary · accessed 2026-08-15
  Supports: Ethereum, Base, Arbitrum, target leverage, issuance and redemption fees
• Index Coop — Index Protocol architecture · primary · accessed 2026-08-15
  Supports: ERC-20 strategies, manager controls, modules, oracles, exchange adapters
• Index Coop — programmatic redemptions · primary · accessed 2026-08-15
  Supports: permissionless redemption, underlying components, front-end independence, leverage exit complexity
• DefiLlama — Index Coop survey record · secondary · accessed 2026-08-15
  Supports: current TVL, Ethereum, Base, Arbitrum, Indexes category, survey observation

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.