BED Methodology Update

Author(s): @anthonyb.eth
Created: 05-26-2022

Simple Summary

This updates the methodology of the Bankless BED Index to rebalance on the first Friday of each quarter, rather than the first Friday of each month. This is an update from the original methodology. This will reduce the turnover of the BED Index and decrease the expense of maintaining it.


The BED Index will move to a quarterly rebalance schedule with the next rebalance taking place on July 1, 2022 which is the first Friday of the following quarter. BED will not be rebalanced during the month of June 2022.


  1. Set Labs is handing off rebalancing to Index Coop’s engineering team and as a result it is highly unlikely that we will be able to rebalance this month.
  2. The product nest has been advocating for all products to move to quarterly rebalances because reducing turnover decreases costs to both the user and Index Coop.
  3. BED’s contribution margin is below 70% six months after launch which means it should be flagged according to the product profitability and retirement framework.


Copyright and related rights waived via CC0.