On DEXTF’s V2: What You Need To Know

DEXTF V2 is an improved version with exciting new features, which follows the V1 release earlier in September 2020. It is in the works and expected to be released later this year between Q2 and Q3 2021.

An overview of what is possible in V1 now:

• 62 ERC-20 standard tokens are supported (and more to be added regularly). This means that portfolio managers (PMs) can use these assets to build a tokenized XTF portfolio with fixed weights.

Example:

XTF.WWW1: DPI (25%), WBTC (15%), AAVE, DEXTF, LINK, WETH (10%), DAI, HEGIC, KP3R, UNI (5%)

Tokenized portfolios are tradable on DEXes upon pool creation. You can find the above portfolio traded here against DEXTF: https://info.uniswap.org/pair/0xe8fc9d4cf216374ba0b582d5ca1498f4978235bb

• Structured tokens have been introduced. Initially structured tokens are being built by the team, although it is in the roadmap to unlock a front-end solution that allows the creation of floored structured tokens to protect from downside risk to the capital itself. The “Marketplace” was launched in late December 2020 as a structured token DEX since Uniswap was seen as inappropriate due to the option’s time decay (theta) that would result in gradual price reduction. In addition the large DEXes are not suitable for non-linear payoff strategies such as options and structured tokens with optionality.
• Tokenized Portfolio creation is completely decentralized to the users as opposed to the DAO-based models. This also means that there’s a level playing field on who can become a market-maker for a certain strategy as you can provide liquidity to DEX pools for that portfolio.
• Arbitrage opportunities. We value each market participant and strongly believe that power users will discover profit opportunities that eventually help to align market prices for tokenized portfolios versus Dapp minting prices (make vs buy the portfolio). The more portfolios there are, the more opportunities an arbitrageur can profit from to the benefit of retail investors that are gas sensitive.

Creating and owning an XTF tokenized portfolio yields DEXTF for the next 5 years, providing the holder a seat on the table to decide on future fees as V2 is rolled out later this year. Fees are both a friction and a propeller for capital deployment in DeFi protocols. Value accrual and fee retention are to be best set by the market, i.e. the community who are the direct users of DEXTF protocol.

What can you do with DEXTF V2

DEXTF V2 introduces active asset management which enables portfolio managers to set rules that change the weights of the portfolio. As a consequence of this, PMs will be able to add/remove tokens to/from tokenized portfolios without redeploying the XTF fund token, resulting in an improved value proposition for both the PM and the investors.

The rebalancing will be determined by the individual PMs, which means rebalancing orders will not originate from a DAO. This feature is aimed to retain the “human” touch of delegating the management of your assets to supposedly someone with more time and expertise, instead of a leaving it to the wisdom of the crowds.

V2 will be modular, as each fund can have a range of functionalities that may or may not subscribe to:

• Participating in yield farming
• Issuing options
• Using margin to take short positions
• Trade directly with decentralized exchanges
• …and more to come

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