DeXe Investment Sneak Peek 3: Own Assets
Continuing our series of posts about Dexe Investment, it’s time to unbox something that gives a trader true power while also making it easy for investors to automatically benefit: own asset.
Let’s say a good trader, Juan, wants to profit from his trading success in the easiest way. He sets up the usual pool with a chosen base asset and a number of investors. But to make things simpler and more lucrative, he also creates the JUAN coin. JUAN is collateralized by all the assets in the pool (let’s say it’s BTC, ETH, USDC, DEXE, and YFI). Investors believe in Juan and so buy up JUAN.
As Juan’s trades are more and more successful, one or more of those 5 assets in the pool naturally increase (whichever ones he is trading profitably). Automatically, the value of JUAN increases proportionately since it is tied to the average value of those 5 assets held in the pool. This is super convenient for investors since they don’t need to receive profits in each of the 5 assets or to wait for payout — JUAN’s value is adjusted right away without them nor the trader needing to do anything. JUAN is freely tradable too, so if an investor needs some quick liquidity, they can sell JUAN to another investor. Conversely, they can buy JUAN if they sense that Juan is about to make some profitable trades.
The role of the base asset also helps JUAN. Let’s say that the team at YFI notices that Juan is a great trader with a consistently large trading volume. YFI decides to incentivize JUAN to use YFI as the base asset by designating a bonus base on his trading volume. Juan is happy to receive this bonus, which goes right into the pool. As such, Juan gets a portion of it as he does with all of the gains in his trading and Juan’s investors get a portion of it since the JUAN they hold automatically rises in value with extra YFI added to the pool. In essence, Juan and his investors end up farming YFI and adding value to the pool and their payouts from it.
These are just some use cases for when traders create their own token in Dexe Investment. Another use case would be for a trader to initiate a vote about taking some assets out of the pool in order to invest them into a seed or private round of a promising project. If investors approve, the trader takes the money out and then returns it to the pool after earning profit in the seed/private round. As with many features of our platform, we know that our community will find even more use cases that we didn’t even imagine — and we love our community’s creativity! When traders can profitably tokenize their reputation, that’s what successful social trading looks like.
Dexe.network is a decentralized social trading platform that operates via autonomous smart contracts and includes tools for virtual currency allocation and automatic rebalancing. It eliminates the risks of transferring digital wallet details such as private keys and API or any virtual currency data to a third party. Most importantly, the DeXe Network connects successful traders and followers in a transparent, verifiable way for the benefit of both groups.
Stay tuned for more with us!
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