Index Coop (https://twitter.com/indexcoop) are working on a Diversified Staked ETH index token that would include the most prominent liquid staking derivatives - rETH, stETH, sETH2 - with weightings that favor # of node operators and distribution of stake across node operators:
Stakewise sETH2 - 26.67%
Rocket Pool rETH - 44.11%
Lido stETH - 29.62%
A thorough overview of this index token product will be shared within a week, with an early October launch targeted. They wanted to see if we have any appetite for providing RPL incentives at launch. The other two protocols will probably contribute, but it’s an all-or-nothing situation because no one protocol would want to subsidize liquidity for another protocol.
Of course this is perfect timing since we will shortly have confirmation on the three liquidity-related votes.
It is great to see that Index Coop have chosen to weight their Diversified Staked ETH index in a way that favours decentralisation of nodes.
Considering this favourable weighting to Rocketpool we should certainly promote the index after it’s launch through our communication channels.
However we have very limited funds compared to the other mentioned protocols from which to offer incentives.
Our priority has to be to focus those limited funds in the most effective manner to maximise rETH/ETH liquidity, especially ETH side liquidity in order to facilitate the unstaking of rETH at a fair rate.
I believe offering incentives for a diversified basket of staked ETH derivatives at this point in time would be an inefficient way to do this.
There is also the small but notable contagion factor of tying a segment of our relatively low liquidity to the other liquid staking derivatives.