Introducing DeFund
Autonomous & Decentralized ETFs
Twitter: @defund_finance
Discord: DeFund.Finance
GitHub: DeFund
Website: defund.app
Medium: DeFund Finance
💡Market Uncertainty Leads to Innovation💡
The rapid progression of blockchain technology and decentralized finance (DeFi) as a whole over the past few years have brought upon the rapid creation of new financial asset classes, derivatives, and yielding mechanisms. There has been rapid market volatility in the entire history of these asset classes and many people lack the time, and resources to properly diversify across the dozens of blockchain ecosystems (and growing) in today's world. Along with that, many people lack the time and knowledge to build hedging products and complicated, financially engineered products to maximize return for a person's risk tolerance. In the end, this leaves a large size of the population, as well as institutional investors (i.e: Endowments, Hedge Funds, Foundations, etc), out of the financial assets in Web3. This means trillions and trillions of dollars are left out of Web3 without a thought from decision leaders to even consider Web3 financial assets.
🎊Solution: Party Like It’s 1993?🎊
On January 22nd, 1993, traditional passive investing was changed forever as the first-ever (successful) Exchange Traded Fund (ETF) was listed for public sale in the United States (see Toronto 35 Index Participation Units (TIPs 35)). Formally labeled as Standard & Poor’s Depositary Receipts (SPDR for short), and commonly known by its NYSE ticker SPY, SPDR tracks the S&P 500 and allows both institutional and individual investors to easily diversify their portfolios (in turn minimizing risk) in one easy to trade security.
Jumping forward to 2022, ETFs are undergoing their most significant change since the 90's. Introducing DeFund Finance: an application-specific blockchain to serve one purpose — help crypto enthusiasts grow their wealth over time. DeFund allows for the creation of decentralized exchange-traded funds (formally called dETF’s) with underlying assets from dozens and dozens of blockchains (and growing rapidly). Once a dETF is created, any DeFund user can invest in any of the created dETF’s offered. Want to invest in an index that tracks the CoinMarketCap Top 20? No problem. Want to invest in Joe’s next big arbitrage funds, go ahead. The possibilities are endless.
⚙️How Does It Work?⚙️
DeFund is built with best-in-class technology from the start. Utilizing IBC, DeFund is able to leverage tokenized assets from any IBC enabled chain including Ethereum (using the recent Gravity Bridge blockchain) and Bitcoin (potentially using the Nomic protocol). With the ability to combine your choice of hundreds of tokenized assets into exchange-traded portfolios, the possibilities on DeFund are limitless.
DeFund is utilizing IBC to aggregate liquidity from decentralized exchanges within the IBC ecosystem, in turn giving DeFund users access to billions of dollars in combined liquidity.
📝Our three-step plan to launch!📝
Step 1 (Apollo Testnet Launch): Create automated, rebalancing portfolios with cross-chain assets decentrally (i.e: index funds: 50% ATOM, 50% Juno).
Step 2 (Thor Upgrade To Testnet): Build funds utilizing CosmWasm smart contracts (i.e: arbitrage fund: Cross-Exchange DEX Arbitrage).
Step 3 (Ivor Mainnet Launch): Launch Defund Mainnet.
⚛️Why Cosmos?⚛️
With its vision of becoming the “Internet of Blockchains”, Cosmos will allow Defund to fulfill its own visions. We envision bespoke, auto-rebalancing dETFs that are comprised of any tokenized asset. For example, a dETF comprised of equal parts BTC, ETH, your choice of stablecoin (USDC, USDT, UST, etc), and your favorite BAYC NFT. Cosmos gives DeFund users the ultimate flexibility to diversify with ease.
Also, the community involvement in the Cosmos ecosystem is second to none. For those who stay involved, keep on the lookout for rewards, guidance, bounties, and airdrops 👀
📃Token, Staking & Governance📃
In a later article, we will go in-depth about the overall tokenomics of DeFund token (dETF), as well as the protocol fee distribution process for xdETF.
100% of all protocol fees will be distributed to xdETF stakers. This allows our users and community to benefit from the upside of DeFund, as well as help keep the protocol as decentralized as possible.
We look forward to the upcoming releases and the future of Defund Finance and Web3 as a whole. Happy trading!
