Indigo Protocol iETH (IETH) — price, overview & secure storage

What is Indigo Protocol iETH and who created it?

iETH is a synthetic version of Ether and was the first new iAsset whitelisted by the Indigo DAO for the Indigo Protocol. The Indigo Protocol is a CDP (Collateralized Debt Position) based DeFi protocol that introduces capital-efficient synthetic assets to the Cardano ecosystem. Users can acquire iETH from a decentralized-exchange-dex/">decentralized exchange (DEX) like any Cardano native asset or mint iETH within the Indigo Protocol by depositing ADA as collateral.

Key features of Indigo Protocol iETH blockchain

When users mint iETH within the Indigo Protocol, they must deposit sufficient ADA to ensure their CDP remains above the applicable collateralization-ratio-mcr/">Minimum Collateralization Ratio (MCR). This means users deposit collateral in the form of ADA to ensure over-collateralization. If the value of a user's ADA collateral decreases toward the MCR, they can add more collateral to maintain their iETH position above the MCR. If a user’s collateral falls below the MCR of their iETH debt, the Indigo Stability Pool providers allow the user to keep their iETH but exchange Stability Pool iETH for the user’s higher value ADA collateral. This process ensures that iETH remains overcollateralized and that the Indigo Protocol remains solvent through its efficient liquidation process.

How Indigo Protocol iETH transactions work

Unique to Indigo, users continue to receive their ADA staking rewards from stake pool delegation while ADA is used as collateral in a CDP. This CDP Liquid Staking feature offers a unique use case for iETH in trading strategies. The Indigo DAO controls the iETH parameters and can vote to adjust the Minimum Collateralization Ratio for iETH and all Indigo iAssets.