6 primordial reasons to build a decentralized hedge fund with Kyber
At Betoken, the launch of the first Kyber release was the event we were waiting for since the beginning of our journey. With kyber, we have finally found the perfect set of tools to run a decentralized hedge fund on top of the Ethereum Network. Here is why:
Slow down, what is Betoken?
Betoken is a decentralized crypto hedge fund where anyone can invest, and anyone can get paid for their investment insights. We use a true meritocracy to manage the investments. Learn more on Betoken.fund & Medium. Follow Betoken on Twitter, Reddit, and Facebook, and join the official Betoken chat group on Telegram.
Developer’s point of view
1. dApp oriented
Kyber is the only platform (besides the failing EtherDelta) that allows smart contracts to directly make orders, which is essential to Betoken. DEXs like 0x and IDEX are humans-oriented or retail trading-focused. Kyber Network has a fundamentally different focus. As a decentralized liquidity network, Kyber wants to allow anyone, whether an individual, dApp, wallet or decentralized hedge fund like Betoken, to tap into its liquidity pool. This enables Betoken to seamlessly rebalance or liquidate our portfolio.
2. Native price feed
Kyber eliminates the need for off-chain price oracles (like Oraclize, which we used in our EtherDelta version), since they provide an on-chain price feed. This makes Betoken cheaper to run and way more secure.
3. Instant trades
Kyber’s instant settlement feature makes trading as simple as a function call. This again makes Betoken cheaper to run and way more secure.
4. Support for cross-chain and complex financial products
Since Betoken is a financial dApp, Kyber’s plan to support cross-chain assets and complex financial instruments makes Betoken more powerful and future-proof. And Loi Luu also announced the development of an open-sourced scalability solution called Gormos, which is possibly even faster and more scalable than both Plasma and current sharding solutions.
Designer’s point of view
5. Instant onboarding
With the creation of Ethereum network, we’ve witnessed a cambrian explosion in the number of tokens, with each token usable only within its own isolated ecosystem.
Kyber Network helps to connect all these disparate, cases isolated token ecosystems and makes tokens useful in a wide range of applications. In doing so, we enable the next phase of the tokenized world.
By using Kyber, we’ll allow users who are not our token holders to utilize our dApp with other tokens. This will drastically reduce the frictions regarding acquisition, activation and retention rate. This is a primordial reason why we use Kyber to build an inclusive community of investors and managers.
6. Instant and seamless transactions
Kyber meets the requirements of decentralized financial applications: offering instant inter-token transactions with a wide range of token options and no settlement risk, which are critical factors for our core values. Kyber helps us offer our investors and managers an user experience as smooth and painless as it can be to instantly rebalance their portfolio.
To sum it up, Kyber Network is the most elegant and secure liquidity solution a dApp team can ask for and often the only platform that dApps can openly integrate with. For us at Betoken, it was either Kyber or Etherdelta, a complete no-brained right? :-)
Thank you Kyber team.
Special mentions to Loi Luu — CEO of Kyber, Zebang (Zefram) Liu, and Surya Krishnan — cofounders of Betoken — for their help during the writing of this post.
If you enjoyed this post, be sure to check what we’re building at Betoken. Clap and share this post to help us spread the word regarding dApps development.
Here are some useful links to get you started with Betoken:
- Website: https://betoken.fund/
- How Betoken works: http://bit.ly/2MmEEKB
- MVP on the Ethereum Rinkeby Testnet: https://betoken.fund/betoken-ui/
- New UI for our MVP: https://invis.io/SYGNGL6V973#/288063883_0-First-Cycle-Deposit-Fund
- Whitepaper: https://github.com/Betoken/Whitepaper
- Formal analysis: http://bit.ly/2MoS4Wl
- Token sale website: coming soon
- Telegram: https://t.me/betokenfund
- Medium: https://medium.com/betoken
- Twitter: https://twitter.com/betokenfund
- Github: https://github.com/Betoken
- Reddit: https://www.reddit.com/r/betoken/
- Facebook: https://www.facebook.com/betokenfund/
We look forward to answering your questions about Betoken and engaging in lively discussion!
EDIT: Bancor also supports trading from a smart contract.
