The DeXe team isn’t one to create products for nonexistent problems: 111PG solved a sniping bot problem that destroyed AMM listings, Kattana created the “Bloomberg Terminal” of DeFi so traders could operate without their hands tied, Wallet Ingo and W2W Copying together gave anybody in DeFi a free way to uncover alpha and automatically trade on it. So what about the flagship product: DeXe Investment? What DeFi problems is it solving?
Even though DeFi is a young field, it’s already too vast for one person to keep track of everything. Just reading the posts of your 10 favorite CT influencers daily can take hours, let alone the hundreds of feeds pushing info every minute. Even if you find a niche and focus on it, to read and analyze information in a timely manner before the market has already moved on that info is extremely hard for an individual to do. Big funds employ teams and bots to sort through it. But what can you do?
One obvious solution is to trust an expert. DeXe Investment gives expert traders the ability to prove their expertise and lead a group of investors into the trader’s chosen strategy. So if you are interested in Play-to-earn, NFTs, L2s, and Solana (for example), you can find one trader specializing in each area and invest your funds. Now, instead of spending hours searching for and analyzing intel, you can just follow the progress of your chosen trader and his strategy.
Protecting your capital… from yourself
It’s no secret that people who don’t trade professional nor do it full time tend to take too much risk and end up losing their funds rather quickly. As humans, we often tend to act impulsively and emotionally. Without studying the fundamentals for hours daily, our trading ends up being more gambling than the professional earning of income. By putting your funds with a professional trader, you are at least giving it to someone with demonstrated skills of risk management and who will keep his eyes on your money like his job depends on it (because it does).
With blockchain being an inherently trustless technology, the focus is on the math being correct in the execution of smart contracts. But with trading, you are dealing with the uncertainty of the future and thus have to trust traders who, at best, have a better guess about the future than your average Joe. In DeFi, it’s hard to determine whom to trust as even some of yesterday’s most trusted influencers and trading gurus can easily become today’s rug pullers and scammers. A blue checkmark on Twitter is not enough. With DeXe Investment, you can see and act on a trader’s reputation in real-time. Plus, the trader has to have his own collateral commuted to his strategy in order to manage your money. Talk is cheap unless your own money and reputation are always on the line.
As we mentioned in the Insurance article, current DeFi insurance schemes only pay out during hacks or similar security breaches. But DeXe Investment’s insurance will protect against certain types of trading losses — as decided by the DAO. This is a fundamentally new, community-based approach where DAO treasury governors (aka, DEXE token holders) can democratically decide which trading risks are tolerable and which events merit a refund. Not some centralized regulator nor even the DeXe team, but the community of holders themselves.
Power to the small guy
“Every time we build something cool, the big banks and VCs come and ruin it” is a common sentiment among DeFi builders. Being decentralized, DeFi can’t just shut its doors to VCs. But we can level the playing field. With DeXe Investment, you can pool your funds with other investors into a trader’s strategy no matter how little money you have or where in the world you come from. Any trader can become a whale with enough investors backing him. Power to the people!
There are just some of the pressing DeFi problems that DeXe Investment is going to be solving. As the platform grows, users will find more and more ways to make it work to their advantage. And with DeXe being a DAO, the community can shape the future of both DeXe Investment and DeFi in general.