Decentralized Asset Management
DEXTF was started in 2018 by a Singapore-based team with vast experience in finance and ultimately launched in summer 2020. DEXTF is an asset management protocol that allows anyone to create and/or invest in digital asset funds. DEXTF follows a minimalistic approach and reduces attack vectors with an oracle-less designed system.
In general, such a peer-to-peer version of asset management allows investment management services to be offered directly from one party to another without going through a middleman or a financial institution. Overall, the design simplifies the process of non-custodial asset management for the average user and lets him benefit from professional portfolio management techniques while retaining custody of funds.
DEXTF adds value to DeFi with innovative financial instruments and by easing access to a range of digital assets. DEXTF offers great incentives for fund creators, investors, liquidity providers, and arbitrageurs who benefit from pricing XTF funds right.
Value Proposition and differentiation
DEXTF launched a simple, efficient asset management protocol and utilizes some of the key building blocks in DeFi while reducing the attack vectors by not relying on oracles – no oracles, no oracle price manipulation.
Fund managers can pick from more than 60 digital assets (ERC-20 tokens) to create funds with up to 10 assets. Index funds are also ERC-20 tokens which are redeemable for the underlying assets.
The DEXTF protocol enables the creation of Structured Tokens. Structured tokens are hybrid tokens which combine features such as yields, derivatives, synthetics or options, and provide investors different payoffs. In particular, XTF fund creators can adjust the risk-return profile of investments for investors.
The first DEXST, a Capital Protected Structured Token (CPST) for ETH, gave investors the return of ETH if positive or the original invested capital if the underlying had negative returns. Since the crypto market is very volatile, options, CPST, and similar instruments can provide great value for investors that want to control risk-returns.
Compared to other asset management protocols such as Melon Protocol, Set Protocol & dHedge, DEXTF has chosen a minimalistic but innovative approach. Key asset management functionalities such as rebalancing, optional management fees for fund managers, stats & analytics will be added in the near future.
BC Analysis: Target Users, potential Partners & Improvements
The 4 targeted user segments are Fund creators, Liquidity providers, Investors & Arbitrageurs. The community is still small but good incentives are in place to grow all user segments. Live rankings and analytics could additionally make investing more fun and help grow the community.
DEXTF already works with Opyn & UMA on derivatives instruments such as DEXST. Other derivatives projects could also be interesting partners to create innovative financial instruments. At a later stage, it would be great to trade Funds also on other exchanges, for example on layer 2 to save transaction costs.
DAOs and DeFi projects that manage treasuries, that work on incentivizing long-term liquidity provision, or work on the utilization of LP tokens as collaterals could also benefit from collaborating and/or investing with DEXTF. Collaboration on flagship funds could drive volume, liquidity & help with building the community.
Get started with DEXTF
DEXTF is a governance token. It gives you the right to propose and vote on proposals. 30% of the supply is allocated to the team for platform development. 5% is allocated to advisors. 15% is for community-driven allocation. 50% of DEXTF tokens are distributed over 5 years to fund creators, liquidity providers on Uniswap which make it easier to invest in funds, and to investors on the platform. Monthly rewards are distributed through Sablier and vested over a 1-month period.
More info on the DEXTF token can be found here.
The DEXTF protocol and system parameters can be upgraded and configured by DEXTF token holders and their delegates. The voting process is specified in the on-chain governance smart contracts. DEXTF holders can delegate voting power to one delegate at a time to vote on proposals. In order to create a proposal, a minimum threshold of 100.000 tokens must be delegated to an address. Proposals are subject to a 7-day voting period. If a simple majority & more than the quorum of 5.000.000 DEXTF tokens is in favor, the proposal will be queued to the timelock (set to 7 days) & implemented.
The DEXTF project is primarily driven by the DEXTF team so far. The team secured seed funding from LuneX, was part of the SGInnovate Incubator & the Algorand Accelerator. DEXTF utilizes the Set protocol smart contracts as foundation for the DEXTF protocol, UMA for structured investment products, KyberSwap to purchase assets for DEXTF funds, and Sablier for reward distribution. More than 60 funds are currently live.
The DEXTF platform enables fund creators to build an index fund. Investors can filter funds and invest through the platform or Uniswap. In the coming months, a focus is on investor/user onboarding as well as adding functionalities such as rebalancing funds, fees for fund creators as well as innovative products such as funds of funds & more complex financial instruments.
Stats & Analytics
Derivative products are new to DeFi. DEXTF launched in the summer of 2020 and distributes tokens to early adopters. The following data should give you an insight into the stage of the project & its positioning in the market.
Check this Dune Analytics Dashboard for additional stats!
Token Holders, Token Distribution, Governance Participants, Token Liquidity & Volume
Asset Management KPIs:
AUM, APY, Fees
Fund Managers, Funds, Index Composition, Investors, Arbitrageurs, Fund Performances, APY, Uniswap Liquidity, Incentives
Dashboards coming soon..
Comparable DeFi indices & Protocols:
PieDAO, Melon Protocol, dHedge, Set Protocol, Index Cooperative, PowerPool, sDefi, as well as indices from Grayscale, Coinshares, Bitwise, Exchanges & Co.
AUM, Investor & revenue growth over time
Dashboards coming soon..