Leveraged Staked ETH (icETH)

Please review the risk warning at the bottom of this article and please do your own research before investing icETH via the DeversiFi 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 that 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 borrows additional ETH which is then staked with Lido Finance in order to procure more stETH. As a result, icETH token holders have spot exposure to ETH and nearly twice the yield compared to simply holding stETH in isolation. The yield on icETH is variable as it 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 DeversiFi you are exposing yourself to some of the following risks, which 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: https://indexcoop.com/blog/introducing-the-interest-compounding-eth-index

Leveraged Staked ETH (icETH) FAQ?

How is interest earned on my icETH?

As the underlying leveraged stETH tokens accrue rewards from Ethereum network validation & fees, the income accrues to the stETH token collateral that underpin the icETH token, effectiveely making each icETH token worth a more over time

What are the fees for staking my ETH for icETH on DeversiFi?

In order to cover the cost of rebalancing and gas fees, DeversiFi charges a 0.2% unstaking fee on the amount of icETH that you unstake. Although no one likes fees, no fees are charged to stake (enter), meaning that you do not pay anything to start participating in the icETH opportunity on DeversiFi

Index Coop also charges a 0.75% streaming fee, which is taken from the strategy revenues before the revenues accrue to icETH

Why does the amount of interest that I have earned sometimes decrease & increase more than I expected?

When you invest in the icETH token (either on DeversiFi or directly with Index Coop), you are exposed to the stETH/ETH price - ie, the price at which Index Coop can exchange the ETH for stETH (and vice versa). The main stETH/ETH market is a Curve Finance]((https://curve.fi/steth) pool, which at the time of writing has $4bn in liquidity. This large amount of liquidity should be enough to ensure that stETH/ETH trades close to it's fair value
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