Hedged pools for retails investors
What is a managed DeFi hedged pool?
A managed DeFi fund is beyond yield farming and on-chain record keeping. We are changing the entire trading model. Instead of trading on centralized exchanges with an order book, trading signals generated through a trading engine, and orders sent through high-speed network connections, we are developing trading strategies rooted in time-tested successful systems as smart contracts that interact natively with other DEX smart contracts automatically, preferably with a zero slippage.
What is Quasar Fund?
Started on September 3, 2019, Quasar Fund was the real-time trading "lab rat" used for ioBots algorithmic development. It also serves as a real-time, real-money track record builder for IOB LLC fund managers.
IOB LLC used the Quasar Fund to develop a brand-new trading system from the ground up. Many trading signals were divided into 4-5 small order sizes to test various limits of the system. This resulted in less-than-optimal results but that was the purpose of the fund.
Why are the results of the signals better than that of Quasar Fund?
The Trading Signals and Quasar Fund have totally different objectives. Each "trading position" in the model portfolio is always fully invested with $10,000, regardless of the risk level of the signal. This results in potentially big profits with larger per-position losses. The Model Portfolio represents an "Aggressive Growth" fund trading objective. On the other hand, the "Total Return" trading portfolio may have a higher risk tolerance with an even higher expected return than the model portfolio, but investors must be prepared for a roller-coaster ride.
No longer relying on centralized exchanges for order execution, Quasar Fund will be migrated to one of our DeFi funds in the near future.
What is Defy Hedged Pool?
iob Defy Fund is the first tokenized, actively managed DeFi fund in the world. Defy will invest in derivatives of non-correlated asset classes including cryptocurrencies, commodities, and stock futures.
The objective of the Defy Fund is low-risk, stable growth with a targeted annual return in the low double digits.
What is DEFY token?
The DEFY token on the Defy DAO provides an open, auditable record for fund inflows and outflows, and is automatically connected to various DEX liquidity pools through a Web3 dApp.
The use of a DAO structure helps fundamentally change the decades-old fund structure, from fundraising to accounting, reporting, and auditing. No traditional third-party custodian and transfer agent required.
What's the difference between Defy and other liquidity pools?
Currently, all the diversified liquidity pools are passive mixers of tokens. Some of them are similar to sector-specific ETFs. Since cryptocurrencies are highly correlated, they may suffer large drawdowns (sometimes all coins drop over 80% from their peaks in a short period of time) as the cryptocurrencies regularly exhibit in the past. Defy will actively trade in derivatives representing different asset classes, mitigating excessive drawdown risk.
Most liquidity pools hold just a few high-flying tokens at the time of their creation. They may experience some extraordinary short-term upside moves, but their short-term-focused design may not yield true meaningful long-term profit potential.
What do I get by investing in Defy Hedged Pool?
The possibility of consistent capital appreciation for years to come.
Defy Fund is not designed to chase the newest fad that may be associated with excessive risks.
To encourage our community-driven governance, Defy Fund investors and liquidity providers are granted FI governance token staking rewards.
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