One of the most talked about topics in the cryptocurrency community over the past few years has been the prospect that a bitcoin ETF could one day be on Wall Street. We already have them in markets such as Europe, Canada and South America, where they have seen explosive growth among private and institutional investors. But as we’ll look at DEXTFs today, it’s not just bitcoin or even regular ETFs that deserve your attention.
So why have exchange traded funds – or, as they are more commonly known, ETFs – received so much attention? Simply put, the creation of an ETF begins by focusing on an asset, a bond, a currency, a sector or entire market segments. You could buy or sell your shares in whole funds as easily as ETFs on the exchange – giving you a highly diversified basket of investments to follow – just like a piece of company stock.
But what better way to do DEXTF than to list bitcoin on the New York Stock Exchange? Well, DEXTF not only brings a mass of crypto assets to people, but it also brings a whole new evolution to the idea of how ETFs are created. In our report on DEXTF, we learn more about how they could disrupt ETFs in a new era, with a platform for decentralized ETFs that are unauthorized and democratic.
What is DEXTF?
As a new addition to the growing DeFi sector, DEXTF brings a whole new component of traditional financial markets to the decentralized community. DEXTF stands for Decentralized Exchange Traded Funds and the ultimate goal is to create a platform where users can create, manage, buy, sell or trade ETFs in a borderless, profit-generating, non-hijacking, fully decentralized asset management ecosystem.
DEXTF supports the traditional ETF market that relies on a large third party intermediary to manage your funds and investments. This makes it too expensive to invest in and manage ETFs, let alone for ordinary investors to set up and manage their own ETFs that others can subscribe to. With DEXTF, users can choose any cryptocurrency to create their own basket of one or more ETFs. DEXTF is managed and developed by Memento Blockchain Pte. Ltd, headquartered in Singapore.
He did it twice – on 8. May 2019 and on 16. April 2020 – receiving a Proof of Concept (POC) grant from the Monetary Authority of Singapore under the Financial Sector Technology and Innovation (FSTI) programme. This has essentially allowed Memento and DEXTF to experiment and develop new technologies. Late 2019. DEXTF has raised $460,000 in a new seed funding round led by cryptocurrency and blockchain companies LuneX Ventures and Singapore-based sovereign wealth fund SGInnovate.
What are the special features of DEXTF?
The basic philosophy of the DEXTF platform is that you are the owner of your assets, not an unknown and invisible third party. Therefore, DEXTF is an abandoned exchange for marketing and investing in ETFs, where users can fully own, control and manage their XTF digital tokens in a no-deposit environment. DEXTF’s unique approach has also overcome some of the challenges associated with decentralized funding (DeFi).
As a symbolic wealth management platform, DEXTF has chosen not to rely on the use of oracles to connect to external information or market channels. The DEXTF development team has indicated that oracles have been used as operating points in the past. Either an open security hole as a means of price manipulation forced DEXTF to model its platform so that XTFs could only be created, minted and redeemed based on the performance of the underlying tokens.
The value of the fund therefore depends on the evolution of the market and the arbitrage of these tokens. This simplicity of design makes the DEXTF platform very modular for users and investors – something we will explore in our DEXTF review. It is incredibly robust and able to support decentralization as much as possible as a self-contained ecosystem. This greater efficiency also helps mitigate another DeFi error that can lead to high gasoline prices.
How does the DEXTF work?
The DEXTF asset management protocol allows each of its users to hold and redeem XTF funds (note the difference between ETFs and XTFs). An XTF is essentially a basket of 10 digital assets, such as. B. cryptocurrencies, which are then combined into an Ethereum-based ERC-20 token that tracks the basic performance of that XTF. In the traditional sense, this ERC-20 token represents a stake in the ETF that proves your ownership.
Once an XTF is hit, users can manage their portfolio or buy back that XTF at a profit. This is possible through a partnership with Kyber Network, where users can deposit stable currencies such as DAI and USDC, which are then invested in a specific XTF. This is all done in one transaction, rather than having to buy each token separately to access a basket of different digital assets at the same time, as is the case when building a portfolio manually.
Fund managers who create XTFs on DEXTF so investors can buy shares can assign risk ratings to indicate the potential risk or volatility of a basket of assets. As of this DEXTF review, their platform supports 67 different tokens that are part of XTF funds, including popular cryptocurrencies like Aave, BAT, Compound, Crypto.com, Chainlink, SUSHI, Uniswap, Wrapped Bitcoin (WBTC, Wrapped Ethereum (WETH), yearn.finance, and more.
What is the role of users in DEXTF?
For now, we can summarize our assessment of DEXTF by simply stating that users can monetize or sell a basket of up to 10 cryptocurrencies in a single XTF token, which will then track the performance of that basket. At first glance, this is based on the role of fund managers and investors. The former is responsible for creating new XTFs within DEXTF, while the latter will invest in these XTFs – buying, selling or trading them – to gain access to broader cryptocurrency markets.
But, as we learned in DEXTF, their platform is based on a unique untrusted and untraceable tokenization protocol. To keep this ecosystem as robust as possible, DEXTF also relies on the active and healthy participation of liquidity providers and arbitrage managers. They work with fund managers and opportunity investors to create the best possible experience for every DEXTF user who has access to XTF funds.
Cash suppliers and proxies
Liquidity providers (or LPs) are needed to ensure the highest possible liquidity for users who buy XTF funds on a decentralized exchange (DEX), for example through Uniswap. By creating an XTF pool on Uniswap, fund managers and investors can actively earn a share of trading commissions and obtain lucrative rewards by extracting liquidity. They then become liquidity providers, playing an important role by allowing investors to buy or sell XTF funds at low cost on the more common and popular DEX.
Another important role within DEXTF is mediation. As we learned in our research of DEXTF, DEXTF does not rely on price data or market information from oracles. Instead, it relies on market forces played by arbitrators to offset the price of a given XTF. Everything depends on whether arbitrators actively look for price differences between the price of the XTF and the value of the underlying assets, including whether the XTF is undervalued or overvalued.
For example, a user who sees that an XTF token has been discounted on a decentralized exchange such as Uniswap can print the underlying assets in the same XTF token. This will help stabilize the price. Just as liquidity providers can benefit from providing liquidity, arbitrageurs also have an incentive to bring new XTF funds to market. This dynamic means that referees’ actions will indirectly provide price information to DEXTFs to price their XTFs.
What does DEXTF offer?
After logging into the DEXTF dApp (decentralized application), you will immediately be prompted to log into your crypto-currency wallet, such as MetaMask. You can then view all the different XTFs, including their ticker name, XTF token price, current assets under management (AUM), their respective risk ratings (from conservative to aggressive) and a description of each XTF. You can then choose to redeem, repurchase or exchange the corresponding XTF tokens through Uniswap.
From there, you can also view the composition of each XTF and see the weighting of each asset within it. DEXTF reports that the average annual percentage yield of XTF is approximately 253%. Ranked by AUM, the top XTF is DEXTF Opportunities Fund (XTF.XXXXTF), which has a price target of $1,584.54 per XTF token (share). Since its inception on the 9th. In December 2020, it increased by 1.585%. According to DeFi Pulse, DEXTF has a total value (TVL) of approximately $4.8 million at the time of this research.
Other funds, such as the DECSTF and the Stabilisation Fund, have posted gains of 1.465% and 1.104% respectively since their inception. Once you have decided to monetize an XTF token – that is, invest in XTF – you can choose how many XTF tokens you wish to purchase. Unlike a regular ETF, XTFs can be purchased in units of less than 1. DEXTF is working not only on decentralized exchange traded funds, but also on several other additions to its platform.
Here are some exciting additions to the DEXTF protocol that we found for this DEXTF test:
1. Decentralised structured tokens (DEXST)
For investors looking for new and unifying investment opportunities, DEXTF has created DEXST, or decentralized structured tokens. This essentially allows users to create hybrid tokens, similar to how XTFs are created. These hybrid tokens are more versatile in the sense that they can represent more than just standard cryptocurrency tokens or basic tools. In the case of DEXTF, DEXST is designed to give investors access to DeFi.
DEXST can co-exist with existing XTFs, where funds can be used to create unique DeFi offerings such as yield, derivatives, synthetic assets, options and more. This is ideal for investors who want to invest in more than just assets and instead have the option to bet on whole markets, sectors or strategies in a decentralised funding framework. In addition, DEXST makers can control their risk-return profile in more detail, increasing potential profitability.
2. Capital Protected Structure Token (CPST)
In addition to our previous point about DEXTF, the first DEXST would be a CPST or DEXST with capital protection. The judicious implementation of CPST allows investors to profit from potential market upswings (such as the price of Ethereum in this case), while protecting them from significant losses if that market becomes volatile. In short, investors can benefit from a rise in the CPST index, but they can take their original investment with them if the index falls.
What are DEXTF crypto currency tokens?
The proprietary cryptocurrency token of the DEXTF asset management platform is DEXTF. As an Ethereum-based ERC-20 token, it serves as a tool for decentralized community management and for incentives and rewards within the ecosystem. DEXTF token holders can vote on new proposals such as new updates, management fee setting, interest rate algorithms and more as part of community governance.
In terms of incentives, fund managers and investors can be rewarded for their participation in the DEXTF XTF or for their performance and rewards for good performance. For example, fund managers who launch an XTF fund can receive DEXTF cryptocurrencies and earn additional rewards for being a top fund, being a top fund, and more. In addition, you can also earn DEXTF tokens by mining liquidity, earning trading commissions on liquidity pools, etc.
What do DEXTF crypto currency tokens look like?
Currently DEXTF is in the middle of a 5-year token distribution program to reward users with incentives. They are committed to absolute transparency and have no plans to sell their DEXTF crypto currency tokens privately or publicly. Users can receive an additional 2x bonus when DEXTF chips are used as a pair or as an underlying asset. This bonus program is divided into three separate groups as follows:
- Monthly incentive program for portfolio managers and investors – 20,000,000 DEXTF (September 2021 – 10,000,000 DEXTF, September 2022 – 5,000,000 DEXTF, September 2023 – 2,500,000 DEXTF, September 2024 – 1,700,000 DEXTF, September 2025 – 800,000 DEXTF)
- Milestone-based incentive program for portfolio managers – DEXTF 5,000,000
- Incentive programme for the production of liquids for all users – DEXTF 25.000.000
The price per DEXTF token is $2.11 at the time of this DEXTF review, according to CoinMarketCap. Its own DEXTF coin, 13,500,000 DEXTF, is currently in circulation with a market value of $27.6 million, but the total stock of DEXTF tokens will be $100,000,000. Of this total, 25% goes to fund managers and investors, 25% to the DEXTF cash extraction program, 30% to the DEXTF development team, 15% is determined by the community and the last 5% goes to DEXTF advisors.
What are the updates to the DEXTF route map for the future?
The DEXTF team is currently working on gradually adding new enhancements to its platform. As mentioned in the DEXTF presentation, each XTF can only consist of 10 assets. However, this is only a soft lock, and future updates will raise this threshold or remove it completely. In addition, DEXTF will add new tokens to its list of supported assets, which currently includes 67 different cryptocurrencies, and introduce new asset types.
These can be tokenized versions of real assets such as stocks, debt, options and others that can be added to an XTF. In preparing this report on DEXTF, we also reviewed the roadmap for DEXTF V2, which is scheduled to be launched in the second or third quarter of 2021. DEXTF V2 will introduce active asset management, essentially allowing portfolio managers to change composition and weights or remove entire assets from XTFs altogether.
With the V2 update, fund managers can now do this without having to rebalance XTFs. This will provide fund managers with even greater opportunities to make adjustments and reallocations to better leverage investor returns. The V2 update will also be more modular, with XTF funds able to have new features including the ability to participate in returns, issue options, use margin to take short positions, trade directly with decentralized exchanges, etc.
Overview of DEXTF– Output
To summarize our evaluation of DEXTF, we can easily see that DEXTF represents something quite unique in the current DeFi space. Asset management based on cryptocurrencies is not new, as we have seen with platforms like TokenSets. But none have come as far as DEXTFs, which bring the power of traditional ETFs to the heart of decentralized finance, where average users can be their own fund managers and investors in a variety of powerful and profitable XTFs.
With over 98 different XTF backgrounds to choose from, you will definitely be spoilt for choice. While conventional ETFs can be expensive and complicated, DEXTF makes investing in a variety of investment pools incredibly affordable, fun and highly profitable compared to what you can find in conventional markets. While most people are tuned in to see that the SEC might finally approve a bitcoin ETF, our review of DEXTF proves that you can find much more if you dive a little deeper into cryptocurrency.
- Project values
- Tokenomics model
- Long-term sustainability
- Support for a wide variety of cryptocurrencies (67 at the time of writing), with support for more tokens and different asset types in the future.
- Allows users to create their own XTFs, manage a portfolio or buy, sell and trade XTFs on a single platform.
- Numerous XTF funds from which users can choose their investments (98 at the time of writing), with high returns (+1,000% for some XTF funds).
- Numerous money-making opportunities for users – cash mining, XTF rewards, arbitrage, etc.
- Relying on network participants (rather than oracles for price quotes) to equalize market prices for XTF funds may result in certain valuation discrepancies.
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