Let's create the BED Index

I have been monitoring how the discussion has evolved around this index. At first I was also a sceptic however after reading the replies from one of the founders @ryanseanadams and seeing the natural demand for this index through other community members and the general crypto public, I believe creating this type of index is vital.

Additionally, I have been a Bankless subscriber since the project launched their first newsletter, to see how far they are now since first launch is a testament to how committed the team is to realizing their vision. I also believe it is why the project continues to scale and will continually do so in the near future.

I encourage anyone who reads this reply, to read the article they released The Digital Culture Revolution - Bankless this is a prime example to see how committed Bankless are to playing an active role in the digital revolution happening in DEFI today.

I look forward in investing in this index and as an active community member I cannot wait to collaborate with them to make this index a success.


Bankless has a lot to offer with helping launch this product and growing AUM - that is clear and exciting opportunity. Index Coop has a lot to contribute here as well, especially when it comes to maximising the extrinsic productivity. ie: Collateral on lending platforms etc…

I do think there are other things to consider, reading over the previous post, I have a few queries. I thought BED was static, fixed allocation amongst BTC, ETH & DPI - now I am not sure, it reads like the methodology is fluid with potential to swap some of the assets with productive variations. I am a fan of utilising productive assets. But if that is the case, the methodology needs to be restructured to include some kind of qualitative component to it like DPI. Something that says why one productive asset has been selected over another.

This value add, improves the appeal of the product, adds to the complexity and leads us to rethink the streaming fee discussion. A productive BED for me has a larger AUM potential, but the methodology needs to be flushed out though before the absolute value of the streaming fee paid by client can then be agreed.

The value of the streaming fee is a product and market fit conversation. Things like how much can be charged before people seek to make their own portfolio instead of using a turn key solution. Obviously if the target client is someone investing $30k, then gas costs are a lot less significant than clients looking to invest $1k. I’d love to see a bit of target client discussion, potential AUM size and pin down the methodology.

A static passive BED for me is low 0.30% otherwise, I’ll be honest it makes more sense to do it myself. Something productive is higher, say 0.60% with an estimated APY >5%. This has be me a lot more excited as it has a huge time saving component to it for me. Ideally for be, I would like the user experience to be that the receiving APY doesn’t require a staking contract and can be something like xToken’s products where the compounding is built into the product. Although, this compounding element will increase Impermanent loss for LPs. I’d be keen to see what the methodologist is proposing for Index Coop’s / SETs engineering team is to build. So we can understand the complexity and how it fits in the market.

After agreeing the streaming fee for the product, then the conversation shifts to deciding the fee split. To assist with that conversation we are developing a framework Methodologist Fee Menu. This is still being reviewed and subject to change, but it gives a flavour for how the streaming fee are shared.

The larger the AUM, the larger the royalty stream, so let’s work together to optimise this product and bring it to market.


To echo Matthew, the value added by a BED index that has intrinsic productivity changes my perspective completely. I find a static BED index uninteresting but a productive index is offering access to something that might be too complex for a lot of investors. That requires some skills which I’m sure Ryan and Bankless have that match with the methodologist fee schedule that’s being discussed.

FYI for folks specifically watching this thread.

Happening this Friday 3/19 :point_down:

  1. Always worth asking whether we can do better on fees if something is basic. This is how Vanguard won passive indexing.

  2. Marketing is a core variable of TradFi ETF success. If BED is a brand that resonates with an addressable market, how big is that market and does that make it worth our time/resources?

A basic entry product like BED also onboards customers to our family of products. Not sure BED is the right one, but definitely has potential.

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We should consider first up-leveling this discussion to a higher level question:

What will be our framework for working with marketing partners?

These are high quality partners with a well thought out concept. But all partnerships raise a higher level of questions (eg, fee splits, long term expectations, duration of deals, what to do if partners don’t promote the product well in the future, etc etc.)

Forgive me if we already have a general partnership framework.

Exciting times!


Hey Owl Community! I’m writing to see if we can resurrect this discussion. I think there was agreement here in the past that the BED index could be a great way to involve newcomers and introduce them to some diversification in a simple way. You may be aware that Bankless just this past week launched the Bankless DAO, which is putting a ton of community firepower behind the marketing/content machine of Bankless. The number of newcomers to DeFi and awareness of DPI is bound to grow. Does the timing seem better to take advantage of the rising tide and exposure Bankless could provide?

If the largest concern is the simplicity of the index, maybe there 's a better way now to include a form of stETH, adding to the product/making it slightly less “replicable”?


Hey Jonny,

Don;t worry the proposal has not been forgotten. We have completed a work team analysis on BED:

There are some ongoing discussions, but I’m expecting a DG2 proposal and vote in the near future.