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.