Index Cooperative offers a range of token-based index products, which could be streamed, issued, and redeemed against a fee (supply-side fees).

Index Cooperative is an asset management protocol built on Ethereum. Index Cooperative was founded by Set Protocol and launched in 2020.

INDEX tokenholders own and govern the protocol. They currently take all of the total streaming fees paid by liquidity providers (revenue).

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Index Cooperative

# Index Cooperative Earnings Methodology

## 1. Overview

Index Coop earnings represent the protocol's net profitability, calculated as total revenue minus total expenses on a daily basis. This metric captures the financial performance of Index Coop's asset management business, which operates structured products (indexes and leveraged tokens) on Ethereum and Polygon. The calculation combines fee revenue from product management with expenses from liquidity incentive programs to determine net earnings in USD.

## 2. Data sources

The earnings calculation relies on several key blockchain data sources:

- **Set Protocol v2 contract events**: Parsed events from Set Protocol v2 smart contracts on Ethereum and Polygon, including `StreamingFeeUpdated`, `SetTokenIssued`, `SetTokenRedeemed` events from DebtIssuanceModule and BasicIssuanceModule contracts
- **Staking reward events**: Parsed `RewardPaid` events from Index Coop's StakingRewards contracts on Ethereum that distribute INDEX tokens as liquidity incentives
- **End-of-day price feeds**: Token price data for USD conversion of all fee and incentive amounts
- **Token metadata**: Token decimal information for proper amount calculations
- **Product configuration data**: Hardcoded mappings of Index Coop product tokens, their launch dates, chains, and initial fee tiers

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Calculate total daily revenue from Index Coop's asset management operations
- **Logic**: Revenue comes from two fee sources. First, direct manager fees collected during token issuance and redemption events are extracted from `SetTokenIssued` and `SetTokenRedeemed` events across DebtIssuanceModule and BasicIssuanceModule contracts on Ethereum and Polygon. Second, streaming fees are calculated by multiplying daily deployed capital by the applicable fee tier, then dividing by 365 to convert annual rates to daily amounts. Deployed capital is tracked cumulatively by combining positive issuance amounts with negative redemption amounts for each token. Fee tiers are tracked over time through `StreamingFeeUpdated` events and forward-filled to handle rate changes. Both fee types are filtered to only include Index Coop product tokens, corrected for token decimals, converted to USD using end-of-day prices, and aggregated daily.
- **Key fields**: `managerFee` amounts from issuance/redemption events, `streamingFee` rates from fee update events, `quantity` amounts for capital deployment tracking, `setToken` addresses for product identification

### Component B: Expense calculation

- **Purpose**: Calculate total daily expenses from liquidity incentive distributions  
- **Logic**: Expenses consist entirely of INDEX token distributions paid as liquidity mining rewards. These are captured from `RewardPaid` events emitted by predefined StakingRewards contract addresses on Ethereum. The events contain the reward amounts paid to liquidity providers. Only payments from authorized staking contract addresses are included to filter out non-Index Coop distributions. The INDEX token amounts are corrected for decimals, converted to USD using end-of-day prices, and aggregated by day.
- **Key fields**: `reward` amounts from RewardPaid events, staking contract `address` for filtering, INDEX token address for price conversion

### Final aggregation

- **Combining components**: Daily revenue and expense amounts are calculated separately, then earnings is computed as the simple difference: earnings = revenue - expenses for each day
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds, with proper decimal adjustment based on token metadata  
- **Time aggregation**: All events are truncated to daily timestamps and aggregated by day, chain, and product
- **Final calculation**: The final earnings value represents net daily profitability in USD, with missing days forward-filled as zeros to ensure complete time series coverage

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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