Apr 15, 2021
Prime DeFi pool launches on dHedge with $125K in value
First product powered by Prime Rating
PrimeDAO is excited to launch the Prime DeFi pool on the dHEDGE decentralized asset management platform. The Prime DeFi pool is the first product powered by Prime Rating, a permissionless rating protocol incubated by PrimeDAO. On the day of rating (April 15th, 2021), the pool has attracted over $125K in value with a lifetime return of 21.96% since its soft launch on March 24th.
A huge thanks to the dHEDGEDAO and community for accepting Prime DeFi in the second dHEDGE DAO Open Call for Manager supporting the pool’s successful launch.
dHEDGE “democratizes investment and tears down the barriers for investors and managers alike” by opening up the creation of hedge funds and subscribing to them to anyone in a permissionless way. This way, investors will be able to subscribe to a manager whose strategy they align with. On the other hand, managers will be able to curate novel strategies that address their target group’s specific needs. PrimeDAO believes that dedicated teams curating customized portfolios will be one of the biggest catalysts in terms of DAO treasury diversification and value management. DAOs right now sit on a handful of idle assets, and most of them do not actively manage even a tiny portion of it. By allocating some of their funds to asset managers that align with their concerns, DAOs can open up a new way of growing their treasury to sustain themselves in the long run.
PrimeDAO is set to iterate on its hedge fund management track to become the trusted partner of the DAOs for treasury management in the future. Prime’s mission to become a DAO2DAO service hub, along with our product suite, which includes Prime Rating, gives utmost importance to the quality and security of the protocols that it invests in, positions Prime in a unique spot to address this need.
Now, let’s dive into the DeFi Prime Pool! 🏊
Pool Strategy
The Prime DeFi pool is an actively managed pool that offers exposure to the best DeFi protocols based on the public Prime Ratings. V.1 of Prime Rating evaluates protocols from a protocol token holder’s perspective based on smart contract quality, data quality, and fundamental quality. The pool utilizes the Smart Contract and Fundamental reports of Prime Rating to identify and position into the DeFi protocols of the best possible quality. The pool is skewed towards the DeFi protocols that received an A+ rating.
The pool balances between three categories of assets, namely:
1️⃣ (25%-45%) Prime DeFi Protocols: Project that receives an A+ rating in Prime Rating (based on FA & Smart Contract reports).
2️⃣ (25%-45%) DeFi Indexes: Exposure to DeFi Indexes, currently the DeFi Index (DEFI) created by Synthethix.
3️⃣ (25%-35%) L1 Protocols: Exposure to the L1 protocols underlying the Pools Prime DeFi Investments, currently only Ethereum.
The following tokens have received an A+ rating based on the Smart Contract and Fundamental reports as of April 15th, 2021:
- MakerDAO
- Uniswap ✔️
- Synthetix
- Compound ✔️
- AAVE ✔️
Token with a ✔️ checkmark are available as Synths on dHEDGE and are added to the DeFi Prime pool.
The portfolio is managed by the Prime Rating stewards and rebalanced weekly (Wednesdays) to reflect the most recent Prime Ratings. The Fee Structure is as follows; 0% Entry and Exit Fee, and 10% Performance Fee over profits made while being part of the pool.
The pool may exit into stables or less volatile tokens if the market heats up. New strategies may be suggested and implemented by the Prime Rating community.
Accessing Prime DeFi ⬇️
Anyone is able to participate in the Prime DeFi pool by adding funds to the pool through the dHEDGE interface. Participating is simple if you already have a Web 3.0 wallet such as MetaMask or Portis with some Ethereum or ERC20 tokens.
First, you will need to transfer your tokens to sUSD, the synthetic dollar token used in the Synethix ecosystem. You can easily transfer any ERC20 token to sUSD via Uniswap or other DEXs.
Now head over to The Prime DeFi pool and press the blue “Invest” button. This will open up the Invest window, where you can select the amount of sUSD you want to add to the Prime DeFi pool. Once you’re happy with the amount to add, click on Invest and sign the transactions. The initial gas fee may be a bit on the high side, but the Prime DeFi Pool’s upside potential will hopefully make up for it!
Prime Rating as the backbone for DeFi applications
The launch of Prime DeFi marks a milestone for Prime Rating, proving its utility as a valuable reference for DeFi applications to leverage. In the future, Prime Rating can be leveraged by any DeFi application to increase its safety and reliability. We look forward to playing around with Insurance, Curation, and Prediction use-cases for Prime Rating. This is just the start!
To learn more about Prime Rating, visit Prime Rating Documentation or join the PrimeDAO Discord Channel.
