Introducing DEXTF Protocol
In this article we write about our mission statement and describe what sets us apart from the existing solutions in DeFi’s asset management segment.
When it comes to managing assets, the main worry (other than the performance) is usually reliability, in other words, the trustability of who is managing your money.
Specifically in DeFi, hodling or simply trading your favorite assets requires multiple transactions and prohibitive gas fees, compounded to the n times as many assets you’re looking to invest in.
DEXTF is an asset management protocol that empowers anyone to mint, trade, redeem and provide liquidity on non-custodial oracle-less tokenized portfolios (XTFs).
XTF token funds are mintable and redeemable for the underlying assets (click here for the full list) and they are unique for each fund created.
DEXTF is built for DeFi to exchange value at a higher velocity without ever losing track of ownership.
Earn rewards and fees by providing liquidity XTF fund tokens.
With the introduction of the new tokenomics, you can earn by just holding a tokenized holding.
In building the protocol we kept in mind a number of problems that we may face in both TradFi and DeFi.
- Ownership. Today, if you decided to invest in a fund in TradFi, you’re effectively ceasing ownership of your hard earned dollars to the financial institution that will custodise your holding on your behalf. In DeFi, you yield farm by staking hard earned assets in risky contracts that may not return it back when due.
- Redemption. Redeeming from the XTF fund token is as easy as minting it. No TradFi-style lock-ups and enjoy the power of asset diversification granted by mutual funds-like pools and trade them on-chain like ETFs. It is permission-less and available without any third party authority
- Price feeds. Today, prices are 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. Deep liquidity will be created through liquidity mining incentives on XTF fund tokens.
- Fees. 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. DEXTF intends to bridge the gap between users who do not have time to research and users who have time and expertise.
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.