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).

governance

github

twitter

discord

etherscan

website

Asset management

Index Cooperative

# Index Cooperative Fees Methodology

## 1. Overview

Index Coop fees represent the total daily revenue generated by Index Coop's asset management products through two distinct fee mechanisms: transaction-based management fees collected during token issuance and redemption operations, and streaming fees that accrue daily based on assets under management. This metric combines both fee types to provide a comprehensive view of Index Coop's daily fee revenue across their portfolio of index tokens and leveraged products on Ethereum and Polygon networks.

## 2. Data sources

The calculation relies on several categories of blockchain and external data:

**Blockchain events**: Parsed Set Protocol v2 events from Ethereum and Polygon networks, specifically `DebtIssuanceModule_SetTokenIssued_event`, `DebtIssuanceModule_SetTokenRedeemed_event`, `BasicIssuanceModule_SetTokenIssued_event`, `BasicIssuanceModule_SetTokenRedeemed_event`, and `StreamingFeeModule_StreamingFeeUpdated_event` logs that capture token issuance, redemption, and fee tier update activities.

**External data**: End-of-day token price feeds for USD conversion and token metadata containing decimal precision information for proper fee amount normalization.

**Product metadata**: Index Coop product definitions including 16 products across both chains with their token addresses, product names (like DPI, MVI, ETH2x-FLI), initial fee tiers, and launch dates.

## 3. Step-by-step calculation

### Component A: Transaction-based fees from issuance events
- **Purpose**: Captures management fees collected when users mint Index Coop tokens
- **Logic**: Extracts parsed `DebtIssuanceModule_SetTokenIssued_event` logs from Ethereum and Polygon Set Protocol v2 contracts, filtering for Index Coop token addresses only. Each event contains the `managerFee` field representing the fee collected during token issuance. Also includes `BasicIssuanceModule_SetTokenIssued_event` logs which represent zero-fee issuance transactions. Events are aggregated daily and limited to transactions involving the 16 defined Index Coop products.
- **Key fields**: `managerFee` amount from issuance events, `token_address` for product identification, `block_timestamp` for daily aggregation, `quantity` for token amounts issued

### Component B: Transaction-based fees from redemption events  
- **Purpose**: Captures management fees collected when users redeem Index Coop tokens
- **Logic**: Extracts parsed `DebtIssuanceModule_SetTokenRedeemed_event` logs from Ethereum and Polygon Set Protocol v2 contracts, filtering for Index Coop token addresses. Each redemption event contains the `managerFee` field representing the fee collected during token redemption. Also includes `BasicIssuanceModule_SetTokenRedeemed_event` logs which represent zero-fee redemption transactions. Events are aggregated daily and limited to transactions involving Index Coop products.
- **Key fields**: `managerFee` amount from redemption events, `token_address` for product identification, `block_timestamp` for daily aggregation, `quantity` for token amounts redeemed

### Component C: Capital deployed calculation
- **Purpose**: Determines the daily amount of capital under management for streaming fee calculations
- **Logic**: Combines token issuance and redemption amounts to calculate net capital flows. Issuance amounts are added as positive capital deployment, while redemption amounts are subtracted as negative capital deployment. Daily amounts are then calculated cumulatively over time to determine total capital deployed on each day for each product. Negative cumulative values are set to zero to prevent negative asset balances.
- **Key fields**: `token_amount` from issuance/redemption events, cumulative `capital_deployed` calculated over time windows

### Component D: Fee tier tracking
- **Purpose**: Maintains current streaming fee rates for each product over time
- **Logic**: Extracts `StreamingFeeModule_StreamingFeeUpdated_event` logs from Ethereum Set Protocol contracts to track fee tier changes. The `newStreamingFee` field contains the updated annual fee rate. Initial fee tiers are defined in the product metadata (ranging from 0.25% to 5.95% annually). Fee tiers are forward-filled to ensure each day has an applicable rate, handling gaps between fee tier update events.
- **Key fields**: `newStreamingFee` from update events, `fee_tier` from product definitions, forward-filled daily fee rates

### Component E: Streaming fee calculation
- **Purpose**: Calculates daily streaming fees based on assets under management and applicable fee rates
- **Logic**: Multiplies daily capital deployed by the applicable fee tier for each product and day. Since fee tiers are annual rates, they are divided by 365 to convert to daily rates. This represents the daily accrual of management fees based on the amount of capital under management for each Index Coop product.
- **Key fields**: Daily `capital_deployed` amounts, annualized `fee_tier` rates, calculated daily streaming fees

### Final aggregation
- **Combining components**: Transaction-based fees from issuance and redemption events are combined with calculated streaming fees using union operations, creating a comprehensive daily fee dataset
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token price feeds and normalized using token decimal metadata to ensure consistent units
- **Time aggregation**: Fees are aggregated to daily grain using timestamp truncation, with zero-filling applied for days with no fee activity to maintain consistent time series data
- **Final calculation**: The total daily fee amount represents the sum of all transaction-based management fees collected plus the daily accrual of streaming fees across all Index Coop products and chains

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Index CooperativeINDEX

Fees

Fees

Competitive landscape

Chain breakdown