Investment Fund: To Crypto and Beyond
We talked about the Standard Fund and about Risk Proposals. Now let’s talk about the Investment Fund, where anything can be the target of investment: NFTs, physical art, Real Estate, etc.
Why an Investment Fund?
The platform we’re building and the tools available are too good to limit the use cases to cryptocurrencies alone. The same mechanism can be effectively used to invest in digital and physical world assets, where there the potential for very high returns meets actual collateral value (depending on the asset). Why not own a piece of the Picasso with the way classic art has been growing in value over the years? Why not bring Real Estate development to Web3?
The key advantage here is our system of transparency, accountability, and ease of investing. With the trader always having skin in the game and with all the security measures that set Dexe Investment apart from other capital management platforms (including trading loss insurance). It’s only natural to extend this better model of social trading to social investing as well.
A Risk Proposal by another name
Functionally, an Investment Fund is very similar to a Risk Proposal in that the trader creates a pool within his fund and funds it with his LP tokens (creating LP2 tokens). The major difference is that investor LP2 tokens are not burnt when they are withdrawn from the pool and can be freely traded with other investors. So if you own LP2 tokens in an investment into a new solar power farm in the Sahara desert, you may want to cash out earlier but the investment will keep going with someone else jumping in.
Oh the possibilities
Imagine investing as a group and guided by an expert investor into all sorts of exciting assets like NFTs, ICOs (in the private round, too!), startups, art, real estate, etc. Assets crypto investors had their sights on for years.
These are just some possibilities. An investment fund can be used for full or partial ownership of sports teams, businesses, master recordings of artists, and anything else you can imagine. This is truly a new world for investing, all backed by DeXe’s emphasis on security, transparency, and accountability.
If you were a trader creating an Investment Fund on the Dexe Investment platform, what would you invest in?
You may even try that plan out soon with the imminent DeXe Investment release.