What is DEXTF? And why is it important to have an asset management (AM) protocol which allows DeFi users to hold, trade and include different assets all within the sleek design of a redeemable token fund which you can trade and provide liquidity on to earn interest yield? In this article we discuss our mission and describe the differentiating factors from other solutions in the same space today.
When it comes to managing assets whether digital or physical/securities in the traditional financial world, the main worry other than the performance of the invested fund is the reliability, or in other words, the trustability of who is managing your money. Apparently, even in the revolutionary blockchain epoch, hodling or simply trading your favorite assets requires multiple transactions and prohibitive gas fees, never mind do it to the n times as many assets you’re currently interested in.
Introducing DEXTF Protocol, an AM protocol which makes managing and investing your assets easier than ever before through our highly liquid XTF token funds, one for each fund, which are in turn tradable or redeemable for the underlying assets.
It is built for the DeFi world to enhance and exchange value at a higher velocity without ever losing track of ownership. Earn fees by providing liquidity to the most popularly traded XTF token funds.
In building it we kept in mind a number of problems that we face in both the real and digital landscape:
- Ownership: it is in fact absolutely not to be taken for granted that when engaging in investment activities, which includes the rather recent bucolic yield farming experience, or investing in a pool by staking the liquidity token to earn interest to lose ownership of your assets.
- Redemption of your investment from your XTF token fund will be as easy as when you subscribe to it. No lock-ups and enjoy the power of asset diversification granted by mutual funds-like pools and trade them on-chain like ETFs. It will also be permissionless and available without third party authority
- Price feeds (and therefore price discovery) is today mainly supplied by decentralized oracles which are, in our opinion, very dangerous. There have been various instances where it has been proven that they have been manipulated and as a result funds were lost. There’s a tendency to think that funds could only be lost through hacking. DeFi as we know it today is heavily reliant on oracle solutions which are a simple but deceptive solution: they provide information from the outside world in the blockchain but they do this at the cost of increasing significantly the attack vectors against the protocols and the funds it secures. There are many instances where the protocol does not need to know external prices and actions that are implemented on chain can be moved off-chain to arbitrageurs for example. Oracles moreover, open the doors for black swan price movements which could topple the DeFi space. We chose to build DEXTF without oracles as we believe that arbitrageurs are a much better solution.
- Liquidity is the single most important factor for any CeFi as well as DeFi product. Deep liquidity will be created through liquidity mining incentives on token funds, as opposed to single asset tokens.
- Fees are the crucial pain-point of any financial platform, which attract or shy away users. DEXTF token holders and portfolio managers will accrue the majority of the platform fees, on top of the performance fees and liquidity mining incentives.
- Expertise is extremely valuable in a world awash of liquidity. Ideas are very seldom being implemented and at times forgotten. We intend to help to bridge the procrastination enabling links which directs you immediately to execute the idea wrapped around a particular XTF token fund in just a few steps.
Finally, DEXTF has been built to cater to anyone who’d like to own assets while they’re being actively managed by portfolio managers (experts). In short, we think that connecting those with ideas to capital owners who usually have not much time is fun and formative.
Particularly interesting to us is how the large congregation of Crypto Twitter can contribute to assemble a larger marketplace curated by industry and interest, as well as detail their investment philosophy behind the investment decisions.