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 Revenue Methodology

## 1. Overview

Index Coop revenue represents all fees collected by Index Cooperative from their tokenized index products. Since Index Coop retains 100% of collected fees, revenue equals total fees. The calculation combines two fee types: direct transaction-based fees charged during token issuance and redemption, and streaming fees calculated as a percentage of assets under management. This metric answers how much revenue Index Coop generates daily from managing their suite of index products across Ethereum and Polygon.

## 2. Data sources

- **SetProtocol v2 events**: Parsed `DebtIssuanceModule_SetTokenIssued_event` and `DebtIssuanceModule_SetTokenRedeemed_event` from Ethereum and Polygon, plus `BasicIssuanceModule_SetTokenIssued_event` and `BasicIssuanceModule_SetTokenRedeemed_event` from Ethereum
- **Fee management events**: Parsed `StreamingFeeModule_StreamingFeeUpdated_event` from Ethereum containing fee tier changes
- **Product configuration**: Static configuration of Index Coop products including token addresses, initial fee tiers, and launch dates
- **Token metadata**: Token decimal information for proper value normalization
- **End-of-day price feeds**: Token price data for USD conversion

## 3. Step-by-step calculation

### Component A: Transaction-based fees
- **Purpose**: Captures direct fees charged during token issuance and redemption transactions
- **Logic**: Extracts fee amounts from `DebtIssuanceModule` events on Ethereum and Polygon, where `managerFee` field contains the fee charged to users. Also includes `BasicIssuanceModule` events from Ethereum, which have zero fees but are included for completeness. Events are filtered to only include Index Coop products by joining with the product configuration. Daily aggregation sums all transaction fees per product per chain.
- **Key fields**: `managerFee` from debt issuance events, `setToken` for product identification, `quantity` for transaction size context

### Component B: Deployed capital tracking
- **Purpose**: Calculates the outstanding token supply for each Index Coop product to determine assets under management
- **Logic**: Combines token issuance events (positive amounts) with redemption events (negative amounts) to track net token supply changes. Creates a running cumulative sum partitioned by chain, account, and token address to maintain running totals of deployed capital. Filters out negative values to ensure only positive deployed capital is used in streaming fee calculations. Missing days are filled with zeros and decimal correction is applied using token metadata.
- **Key fields**: `quantity` from issuance/redemption events, cumulative `capital_deployed` sum

### Component C: Fee tier management  
- **Purpose**: Tracks the current streaming fee rate for each Index Coop product over time
- **Logic**: Combines initial fee tiers from product configuration with fee tier updates from `StreamingFeeUpdated` events on Ethereum. The `newStreamingFee` field contains the updated annual fee rate as an 18-decimal number that gets normalized to a percentage. Uses forward-filling to ensure every day has a valid fee tier for each product, propagating the most recent fee tier when no updates occur.
- **Key fields**: `newStreamingFee` from update events, `fee_tier` from initial configuration

### Component D: Streaming fee calculation
- **Purpose**: Calculates daily streaming fees based on assets under management and current fee tiers  
- **Logic**: Multiplies deployed capital by the current fee tier, then divides by 365 to convert annual fee rates to daily rates. This calculation is performed for each product on each day where positive deployed capital exists. The streaming fee represents the daily management fee earned on assets under management.
- **Key fields**: Daily streaming fee = `capital_deployed` × `fee_tier` ÷ 365

### Final aggregation
- **Combining components**: Transaction-based fees and streaming fees are combined using union operations, creating a single dataset of all daily fees per product per chain
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token price feeds, with proper decimal correction applied based on token metadata
- **Time aggregation**: Fees are aggregated to daily boundaries using timestamp truncation, with missing days filled using zero values
- **Final calculation**: Total daily revenue equals the sum of all transaction-based fees plus all streaming fees, converted to USD, since Index Coop retains 100% of collected fees

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Index CooperativeINDEX

Revenue

Revenue

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