BED Index How-to Guide
Summary
The BED Index is live! It's a new smart-contract governed index that is comprised of 1/3 BTC, 1/3 ETH, and 1/3 DPI. To learn more about BED, check out this article written by siddhearta and Frank America.
Awesome! How can I get BED?
You have a few options to acquire BED.
- You can use the TokenSets interface to issue BED with wBTC, wETH, and DPI
- You can use the TokenSets interface to purchase BED with BTC, ETH, USDT, USDC, or DAI
- You can use Uniswap V3 to trade and exchange ERC-20 tokens for BED if there is sufficient liquidity
Issuing BED with TokenSets
- Navigate to the TokenSets website using this link
- Click on the button with 3 dots located in the top right corner of the screen, then select Issue.
You must have all 3 collateral types in order to issue BED. In the above screenshot, it would take 0.00102 wBTC, 0.016814 wETH, and 0.114623 DPI to issue 1 BED Index Token.
Purchasing BED with TokenSets
- Navigate to the TokenSets website using this link
- Click on the Buy button located in the top right corner of the screen.
- Select which currency you would like to use
- Enter the amount of BED you would like to purchase and click Preview Buy
- Review the purchase details, click Submit Buy, and Confirm the transaction in your wallet
Purchasing BED with Uniswap V3
- Navigate to the BED/ETH pair on Uniswap V3 by using this link
- Click on the Trade button located in the top right corner of the screen
- Select which currency you would like to use and click Swap (Note: Trades can only be executed if there is sufficient liquidity)
Review the trade details, click Confirm Swap, and Confirm the transaction in your wallet
⚠️Something to consider when purchasing BED
- The price on Uniswap doesn't reflect the underlying asset's price ALL THE TIME.
- If buying, you should check the Net Asset Value (NAV) on TokenSets, and compare that to the asset's price on Uniswap, to determine if BED is trading at a discount or premium.
- For example, I purchased BED at a discount on Uniswap, where BED was trading for $93.34, and the NAV on TokenSets was $94.16.
- At the time of writing, BED was trading at a premium on Uniswap with a price of $95.24 compared to the NAV of $94.67 on TokenSets.
How to LP to BED/ETH pair on Uniswap V3
- Navigate to the BED/ETH pair on Uniswap V3 by using this link
- Click on the Add Liquidity button located in the top right corner of the screen
- Determine how much BED and ETH you want to provide and set your liquidity range with a min and max price.
Over-analyser provided us with a couple of great resources which could help you determine your liquidity range. Check out this forum post on BED:ETH price ratio and this substack article Concentrated Divergence Loss for additional help.
- Click Approve BED then click Preview
- After reviewing your liquidity provision, click Add and Confirm on your wallet
- Congratulations! You now have an open LP position in the BED/ETH pair on Uniswap V3!
