Index Coop has launched a new product called the Diversified Staked ETH Index (dsETH) that will give investors exposure to the top liquid staking derivative (LSD) tokens on the market.

This product is similar to the DeFi Pulse Index (DPI) and the metaverse index (MVI) which are also offered by Index Coop.

The dsETH index offers exposure to Lido Finance’s stETH, Rocketpool’s rETH, and Stakewise’s sETH2 tokens. These tokens are yield-bearing assets for investors that have staked their ETH holdings and can be used elsewhere to earn additional yield in DeFi.

The idea behind getting all three versions of what is essentially the same thing comes down to balancing risk, said Index Coop’s product and growth lead Crews Enochs. Holding the index means you wouldn’t lose it all should one of these staking platforms get hacked.

After that, exposure to all three LSD tokens would ensure that the overall yield that your staked ETH is getting is much more consistent.

The dsETH index is expected to generate as much as $4,000 a month in revenue in February via the 0.25% streaming fee. This move highlights the growing interest in staked Ethereum and the potential for yield-bearing assets in the DeFi space.