gtcETH is an index token made up of the leading Ethereum liquid staking tokens. In addition to a methodology that encourages decentralization, gtcETH shares a portion of public goods funding.
What is the Gitcoin Staked ETH Index (gtcETH)?
The Gitcoin Staked ETH Index (gtcETH) is an index token made up of the leading Ethereum liquid staking tokens. In addition to a methodology that encourages decentralization, gtcETH shares a portion of staking rewards with Gitcoin in support of public goods funding.
Over $72m has been donated to and distributed by Gitcoin since 2017 in support of public goods. The Gitcoin Grants program accounts for $51m of that sum with 3,588,288 unique contributions.
The objective of gtcETH is to enable token holders to access the top ETH liquid staking tokens through a single token while simultaneously contributing to public goods funding.
The methodology is the same as dsETH with the objective of giving token holders diversified exposure to liquid staking tokens, with weightings that favor decentralized liquid staking protocols. To be eligible for inclusion, liquid staking tokens must meet all inclusion criteria, which center around security, transparency, liquidity, and client diversity. You can learn more about the dsETH methodology and underlying tokens here on the Index Coop Forum.
If a user were to hold 1 gtcETH token for a year and earn a 5% gross staking APR during that time, their gtcETH token would ~ 1.03 ETH and they will have contributed ~0.0175 ETH to Gitcoin over that period; applying a constant ETH price of $1,700, that contribution would be worth $29.75, or double the average historical contribution.
Additionally, at a TVL of $1m, gtcETH would contribute ~$17,500 annually to Gitcoin Grants.