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The complexity of DeFi products also means diversification of investment tools, which also creates space for asset management platforms.
Original title: “Opportunities and Potentials in the Decentralized Asset Management Industry”
Written by: Zheng Jialiang, Research Director of HashKey Capital
Since the boom of DeFi, the market has witnessed the development of various DeFi agreements, such as AMM, lending, derivatives, synthetic assets, etc., and each track has developed and representative projects. Asset management is a major product of traditional finance, and its decentralized form does not follow the entire DeFi development steps. Decentralized asset management has initially possessed a relatively complete model. With the increase in asset types, decentralized asset management will have good growth potential.
Allow ordinary people to participate in games with excess profits
Managing financial assets, especially those with good liquidity and high volatility, is a relatively time-consuming and laborious task, whether it is traditional assets or encrypted assets. As far as a single person is concerned, due to the lack of investment ability and risk control ability, it is still difficult to outperform the management of professional managers from the perspective of income. This is also the reason for the birth of traditional asset management. In addition to public funds, traditional asset management has a higher entry threshold. Decentralized asset management provides a model of community participation, lowers the threshold, and is also applicable to Crypto features.
After forming a certain scale, asset management began to take advantage of two types of information and resources. Over the years, the main model for Crypto to create excess returns is still relying on information gaps and capital games based on information gaps. The model of asset management is to allow retail investors to have more opportunities to participate in the information gap game.
There are two aspects to the generation of the information gap in Crypto: on the one hand, it is caused by the circle of the community, and the transmission of information between public and private channels is very different; on the other hand, it is caused by the accumulation of massive information. A complicated thing.
For such large assets such as BTC, the information that institutions and retail investors can access is not much different, and the excess income is small; while the excess income of small assets is large because of the protection of information gaps. Therefore, managing small assets is the advantage of asset management.
Decentralized asset management or blue ocean
The reason why we are still in the blue ocean stage is that there are still relatively few people who realize the necessity of asset management:
Most people can’t run the market, and even more can’t run Bitcoin. The market as a whole is still in the game stage. The game state is that it is difficult for individuals to defeat institutions. Whether centralized or decentralized, as the market value of Bitcoin becomes larger and larger, the income of holding currency has begun to decrease, and the risk of Altcoin is proportional to the return. .
Traditional asset management relies on reputation and performance. Decentralized asset management has a short running time, and also has practical problems such as opaqueness, inflexible mechanisms, and lack of Tracking Record, which will be resolved over time.
The rapid increase in the difficulty of investing in encrypted assets has also provided asset management opportunities
In addition to the expansion of the number of assets, another dimension is that the complexity of asset returns becomes higher. From Bitcoin to public chain to DeFi/NFT, the complexity has shown a stair-like rise, and it will become more and more complicated in the future. Assets on the chain, all kinds of weird assets on the chain, coupled with composability, create a variety of assets/returns.
Different types of agreements create multiple revenue models:
With the emergence of these complex and changeable gameplay, if there are models and methods that can solve the revenue problem, there should be a certain market.
I do not intend to discuss the pros and cons of traditional asset management and decentralized asset management, but only the scope of investment can be used, and it is difficult for traditional asset management to participate in the latter types of benefits mentioned above. Being able to buy Altcoin may already be the largest investment range for traditional asset management in the Crypto field. Decentralized asset management is relatively new and can participate, or it is possible to participate.
The more complex the type of income, the greater the room for decentralized management. The appearance of Year last year is to cut into this market.
In the early years, Yearn used a strategy of comparing yields. For example, when users deposit Dai, they would seek the highest Dai yield among different pools such as AAVE or Compound. Later, with the increase in capital volume and the emergence of liquid mining, Year has entered the machine gun pool stage, which can help users distribute the income of different DeFi mining pools, and there will be more active operations (such as participation in mining, tokens). Selling and conversion), the entire process is automated, and users reduce costs.
Because an important part of liquidity mining revenue is actually token rewards rather than fee income, the processing of token rewards becomes important. The machine gun pool automates this part, so that customers do not need to consider the intermediate process and what to deposit Tokens can get rewards represented by tokens. Vault’s strategy is determined by voting by the Year community.
And due to the addition of YFI’s community tokens, YFI rewards can also be obtained by staking yCRV in the initial stage. The emergence of machine gun pools like Year itself is to solve the problem of matching between multiple protocols, plus its own token distribution, so that the revenue of a machine gun pool presents a multi-dimensional dynamic distribution. There is a high transaction fee for tokens moving between protocols, which is why the one-click machine gun pool is gradually accepted by the market.
In the previous article on cross-chain assets, we sorted out the distribution of blockchain assets. Due to the explosion of NFT assets, the rapid growth of long-tail assets and the growth of single high-value Token assets (such as NFT artworks are very expensive) High), resulting in a substantial increase in the threshold of investment, evaluation, and transaction. After reviewing the various DeFi and NFT decentralized asset management agreements in the market, we can divide them into four categories:
The active management platform provides a management platform. Fund managers can establish a combination of various tokens, and they can also directly participate in the following three types;
Passive management platforms mainly provide tokenized index fund products and agreements;
The revenue aggregator, represented by the machine gun pool, provides services for active operations in multiple types of fixed-income products, including lending, mining, and staking. Fund managers (strategists) provide relevant strategies.
Asset packs (Buy and Hold): Provide share-based NFT asset pack management. Shares can be real shares or asset-backed social tokens
Active management is the most active form. The platform establishes and participates in rules, fund managers independently choose strategies and exposures, and accounts and transactions are transparent and open. Active fund management can best stimulate the enthusiasm of fund managers and maximize their returns.
dHEDGE-social fund management platform
dHEDGE is a non-custodial asset management agreement, launched based on the Synthetix ecosystem. Its investment portfolio is also supported by Synthetix’s derivatives liquidity agreement, which can directly trade Syntheitx’s synthetic assets.
The advantages and disadvantages of using Synthetix are also very obvious. The advantage is that because all S assets (synthetic assets minted on Synthetix) are used, there is no slippage in the transaction, and the assets are exchanged through the oracle model. The disadvantage is that its asset class is limited to Synthetix’s structure, and the investment method can only use sUSD (current market value of 250 million US dollars).
The biggest advantage of dHEDGE is a transparent social trading platform. Fund managers can create their own investment portfolios and use their own strategies. The charging method is generally a performance fee of 0-20%. The platform will use Dashboard to present recent performance, strategies, and score the volatility of the portfolio. Each transaction in the combination will be clearly displayed.
Because it is a social trading platform, you can also copy strategies (Copy Trade). For example, the more popular dHEDGE Top Index is a combination of popular strategies on several types of platforms. In addition, fund managers can also establish private pools that only provide services for specific whitelisted addresses. dHEDGE is relatively simple to create a fund. Submit information and repost a Twitter, and the portfolio will be established without review.
dHEDGE owns the token DHT and can distribute 10% of the return on investment of Fundmanager to DHT holders. It also provides DHT Mining (government mining) / Performance Mining (performance fee sharing) / Liquidity Provider (providing transaction liquidity) three reward services, in the form of DHT and SNX.
Enzyme (Melon)-Decentralized Fund Management Platform
Enzyme, formerly known as Melon, is also an on-chain asset management protocol. The project has been built since 2017. Managers can build their own investment portfolios, and investors can choose specific investment managers to invest. Compared with dHEDGE, the main feature of Enzyme is that it is based on the entire Ethereum. Compared with the range of synthetic assets, the investment assets have to be visited a lot, and the strategic gameplay of the combination becomes more abundant.
In early 2021, Enzyme launched the V2 version, supporting more than 180 assets, adding AMM pools that can be used in investment portfolios, and allowing short selling and liquidity mining. Enzyme will launch a new DeFi product Sulu in the near future, with 9 major upgrade plans, including: increasing borrowings (previously only loans), Tokenized transfer of portfolio (Vault) shares, integration of several major DeFi agreements such as AAVE/Balancer, And will be able to inherit their mining and compensate the portfolio manager for a certain transaction fee (on the chain).
Enzyme is relatively stricter than dHEDGE, and the fund launch review cycle is longer, and the cost of creating a Vault is higher, especially for users who are accustomed to DeFi. Of course, this cost is much lower than that of a traditional asset management.
Enzyme creation of Vault costs
Passive asset management is generally linked to an index. Traditional index investment has achieved great success in the past decade, so index management of digital assets is a very easy to think of.
Crypto indexation management before 2020 actually faces the difficulty of the industry, which is that it is difficult to diversify risks. Most industry indexes are actually weighted by market value, because BTC always accounts for 50-70% of the market share. The market is actually only two types of large-market value public chains and other varieties. Index investment and BTC itself have a particularly high correlation. The capital rotation is the feature, and it loses the meaning of allocation.
Changes have begun in 2020 because DeFi and NFT have successively developed as independent industries. There is no obvious large market value product in the DeFi industry in 2020. DeFi began to flourish, and AMM, lending, derivatives, aggregators, etc. came out one after another, and the entire market appeared to be divided.
This creates a living space for index investment. The current development dilemma is also the same: index investment is relatively easy to be accepted by people with low risk appetite, and cryptocurrency investment (speculation) is basically high risk appetite, so passive investment still has a long way to go. But after all, there are new ways to play in the DeFi field. Tokenization means that Backet can mine, which is another source of revenue.
sDEFI
sDEFI is the earliest tokenized index, and Synthetix was launched in November 2019. sDEFI also has the characteristics of Synthetix, that is, it is a synthetic asset. It tracks 9 DeFi tokens with equal weight and rebalances every quarter. The price of the anchored 9 tokens is determined by the oracle and fed back to the sDEFI token. Since there is no substantial asset support, users need to trust the Synthetix agreement. From the current market value (7m), it has not created a larger market.
Index Coop
Strictly speaking, Index Coop is not an index product, but a decentralized index investment community jointly launched by Set Protocol and DeFi Pulse. In short, community members can publish indexed product project proposals in the community. If the proposal is passed, You can directly launch the indexed product.
Currently Index Coop supports 4 indexes, namely DeFi Pulse Index Token (DPI), CoinShares Gold Index Token (CGI), Flexible Leverage Index (FLI), Metaverse Index ($MVI). Token INDEX is the governance token of the community, which can be used for contract upgrades, new product launch voting and treasury management, etc. It can be obtained through mining, rewards, etc.
DPI
DPI can be said to be the most famous tokenized index in the industry, jointly launched by DeFi pulse and Set Protocol. Set Protocol itself is a decentralized asset management protocol that allows users to create and manage ERC20 portfolio management assets. DPI is a DEFI index with market value weight. According to the smart contract, a package of DeFi tokens is placed in the smart contract. The smart contract mint DPI token. When redeemed, the DPI token can be used to reversely get the package of tokens. The market value of DPI is about 1.23. One hundred million U.S. dollars.
One advantage of tokenized indexes is that they can be mined. For example, ETH/DPI trading pairs can be mined for liquidity at IndexCoop Farm and receive INDEX token rewards. In other words, in addition to the investment income of DPI itself, there are additional mining income and rebalancing income.
TokenTerminal Smart Beta Index
This is an index between active management and passive management proposed by the data analysis website Token Terminal on the Index Coop community, that is, the Smart Beta Index. It selects 10 DeFi currencies with the lowest valuation (P/S) to construct an index. , Using the method of market value weighting and adjusting according to S/P (the larger the S/P, the higher the proportion). Through a backtest, as of February 16, TTI can directly outperform the pure market value weight of DPI. The index shows that the value factor can still bring excess returns.
NFTX
NFTX is a type of DAO community that provides exponential participation in NFT for ordinary users. NFTX allows users to issue funds by themselves, and users can deposit their own NFTs (such as CryptoPunks, Axies, CryptoKitties, Avastals, etc.) on NFTX (on the platform), thereby swapping out an ERC20 token representing the fund share.
Other users can also buy funds on NFTX. For example, if they are optimistic about CryptoPunks, they can buy Punk fund tokens. There are two types of funds on NFTX, D1 is the basic fund, which is minted for ERC20 and NFT 1:1, and D2 is a compound fund, which is a combination of tokens of the basic fund. Funds with D1 shares can also carry out arbitrage, such as depositing the same type of NFT, and randomly obtaining another NFT of the same type. This mechanism has also been criticized as D2’s final scoured mileage is low-priced NFT, and this design needs to be improved.
PieDao
PieDao is also a passive asset management agreement. In PieDao, anyone can create a portfolio that covers digital assets and synthetic assets that represent traditional assets. Each asset portfolio is called a Pie. They are a decentralized and tokenized index. All Pies are backed by underlying assets and can be redeemed at any time.
Pie can be built on Balancer Smart Pools or PieVaults. Because Balancer can provide multi-token AMM, depositing a series of Tokens in the Smart Pool is equivalent to locking the token ratio, and the AMM proceeds of the pool will be returned to the token holders.
PieVault is Piedao’s own product. The combination established in PieVault can apply yield enhancement strategies to each underlying Token, including: staking, lending, etc. PieVault acts as a machine gun pool with a dynamic allocation strategy. The advantage is that all the profits go to the tokens, and there are no additional operations and gas fees. The first PieVault is YPIE, using the revenue pool provided by the Year system. There are currently 4 PieVaults and 4 Smart Pool pools.
In addition, for the convenience of users, PieDao has also set up an Oven mechanism, which allows investors to package the same type of Pie together when they choose Pie, and deposit at least 10 ETH in a lump sum, which reduces the overall cost.
The most interesting investment portfolio on PieDao is PLAY. It is an NFT-oriented investment portfolio jointly developed by PieDao and NFTX, covering most of the mainstream NFT project tokens on the market, and because of the cooperation with NFTX, it can directly face ERC-721 tokens. PLAY’s token distribution method is also based on market value, giving more weight to more reliable assets, and adjusting the innovation, community, and growth potential of each project.
Yearn – The most successful DeFi revenue aggregator
As mentioned earlier, Year’s solution is the linkage between complex DeFi protocols. The biggest problem between DeFi protocols is nesting. Take the most popular yETH machine gun pool at that time as an example. The user deposits ETH into the yETH machine gun pool. yETH is mainly used to borrow DAI from Maker, and DAI is deposited into another machine gun pool yDAI. yDAI is responsible for depositing DAI into the y pool of Curve as an LP. After LPtoken is locked, CRV tokens will be obtained. CRV tokens are then converted into ETH to increase user income. The machine gun pool is to complete the three complex operations (borrow DAI, deposit y pool, CRV to exchange ETH).
Of course, users can go to Maker to lend Dai, and then deposit Dai in Curve to get rewards, which increases the difficulty of operation. Therefore, the machine gun pool is mainly to solve the trouble caused by the previous nesting of DeFi and the gas caused by the popularity of DeFi. Fee burden. Yearn officially launched the V2 version in January this year.
Cost changes:
Year’s V2’s entire system revolves around Vault (machine gun pool), and the main components are as follows:
The entire investment process is as follows (for example):
The V2 strategist is an important part of governance, and the V1 strategy is basically drawn up by the agreement itself. After evolving to the V2 version, due to the increase of various Vaults, strategists are required to contribute strategies. Strategists are similar to fund managers. In order to motivate them, they share performance costs with Year.
The strategist is also part of governance, and the deployment of the strategy requires the YFI holder of the multi-signature wallet to vote. A strategy is a modular smart contract. The strategy specifies how to borrow, where to allocate and dispose of assets.
In summary, Year includes pools (Vaults), strategists (fund managers), and platforms (providing governance and control functions). Users can choose non-synchronized currencies to invest according to the currencies they hold. Different currencies also have different pools and strategies.
Harvest Finance
Harvest Finance is an on-chain liquidity aggregation project, mainly used for DeFi mining to help users reduce Gas fees and search costs. The high income of mining mainly comes from FARM tokens (Harvest Finance) subsidies.
Harvest is very similar to Year. Harvest currently has about 30 optional mining pools (farms). Since its establishment, Harvest has saved a total of about $27 million in mining fees. Harvest has its own token, FARM, without pre-mining. 70% of the mining revenue in Harvest will be transferred to the hands of miners, and 30% will be converted into Farm tokens, which will be used to reward Farm holders and increase the value of iFARM tokens (the interest-increasing tokens in Harvest).
Harvest is famous for being attacked by a flash loan on October 26, 2020. It was used by the attacker’s oracle attack and lost about 4 million U.S. dollars, after which the attacker returned 2.47 million U.S. dollars.
PanCakeBunny
With the rise of DeFi on Binance Smart Chain, the revenue aggregator on BSC has also grown very fast. PancakeBunny is designed to help BSC’s on-chain participants increase revenue, and the revenue is automatically converted to the CAKE (Amm on BSC) compound revenue pool, so that users can earn more CAKE.
PanCakeBunny is an ecologically related project of PanCakeSwap (CAKE). Cake’s LP tokens can also be deposited into Bunny to obtain income. Due to the recent rise of Cake, Bunny’s lock-up volume exceeds Autofarm. PanCakeSwap is also the core of the machine gun pool on BSC. Like the previous largest revenue aggregator Autofarm, most of the pools have used PCS.
The NFT track is mostly based on issuance platforms, and some similar asset management projects have also appeared, taking the form of social tokens or shares, such as WHALE, B20, K21, and adopting the strategy of buying and holding NFT products. The purchase of assets has been handled by professionals who want to be professionals, such as Whale’s Shark and B20’s Metakovan. In fact, this is not much different from traditional asset management.
Token holders get the share of holding these encrypted artworks, but in these shares, some are due to community tokens, in addition to floating income (the asset-backed band is not equal to the actual share), there are Various functions that can participate in governance and obtain the purchase of games and virtual assets, so it is slightly different from traditional asset management.
K21-Art Asset Pool
The K21 project is a closed asset pool with 21 artists’ NFT works. K21 cooperates with multiple artists. After the artists complete their artistic creations, they will put NFT works into K21’s collection library. The review of the artist is completed by an anonymous team engaged in encrypted art. It is still in the review and creation process. When it is completed, vault and the gallery will be launched simultaneously.
K21 is also the token of the project, which represents the ownership of this vault, that is, the holders of K21 will share the vault to obtain the rights and interests. The total number of tokens is 21 million. K21 is not a governance token, but has a voting function, which is mainly used to vote on vault’s comprehensive purchase offer. Mining function will be added in the future.
B20-Art Asset Pool
B20 is a token issued by Metapurse. The large-scale issuance is supported by the encrypted artworks collected by Metapurse. B20 represents the ownership of these encrypted artworks. Including 20 collections of Beetle Everydays: The 2020 Collection, as well as a series of collections such as Cryptovoxels, Decentraland, Somnium Space. B20 tokens represent actual ownership, and tokens also have functions such as participating in NFT repurchase and liquidity mining.
Whale
Unlike the previous two share tokens, Whale is a social token. Whale tokens are supported by NFT assets. All NFT assets are stored in the Vault. These NFT assets contain the rarest and valuable NFTs, such as those from Gods Unchained. , Rare Digital Art (CryptoArt), Cryptovoxels, Sandbox, Avastars tokens.
As a social token, its value is supported by Vault’s assets, and it is also given more community functions:
Purchase the NFT created by the $WHALE community;
Purchase physical and digital whale items;
Rent NFT from Vault;
Purchase a limited range of NFTs from the Vault;
Participate in community voting and decision-making;
Participate in the liquidity mining of $WHALE and receive monthly liquidity mining rewards;
Participate in the role-playing of holders, such as dolphins, sharks and whales, to conduct governance, such as budgets, activities, NFT sales decisions, and NFT purchase decisions;
Participate in meetings organized by virtual and physical communities.
The economic functions of Whale tokens are endorsed by the value of Vault, which will ensure the value of Vault, such as: buying NFT with appreciation potential, selling NFT at a suitable price, renting NFT, and reinvesting existing income. Vault is audited monthly by Nonfungible.com.
A simple calculation shows that the market price of Whale is higher than the total price supported by NFT support. Because Whale tokens are not a share, the premium includes governance functions, market sentiment and other factors.
The value capture of centralized asset management lies in fee income. As for decentralized management, although the platform also charges fees based on centralized asset management, as DeFi itself, the key economic model is still the Token Economy, which allows the platform tokens to gain the benefits of the increase in the scale of the platform.
The Token Economy-centric value capture methods include:
Tokens offer discounts on handling fees;
Token participation in management fee sharing;
Platform income is used to burn tokens;
Participate in platform governance;
Staking mechanism and Referral mechanism, etc.
For example, Enzyme Finance’s latest MIP is mainly to increase the use of MLN tokens, especially the frequency of linking the platform AUM to the value of the token, and to reduce inflation:
Stage 1
AUM fees will be paid in currency (and possibly other liquid assets) to a new type of Melon engine
The Melon engine converts the collected fees into MLN tokens and burns them;
Enzyme vault fund managers holding MNL tokens will receive a discounted fee (the discounted price will be determined by the board of directors-but can be adjusted over time);
For funds with low AUM (<$150k), a minimum fee mechanism will be established to prevent large funds from subsidizing small funds;
Investment expenses (i.e. when deposited in the vault) will not be reintroduced
Stage 2
Therefore, the economic model of decentralized management with Token Economy as the core lies in how to issue tokens so that fund managers, users, and token holders (community participants) obtain consistent benefits.
The frequency of on-chain information collection in blockchain projects is an easily overlooked issue. The degree of frequent dependence on price information often determines the feasibility of a type of project. At the beginning, CLOB (Central Limit Order Book) DEX couldn’t be done because the cost of high-frequency information was too heavy.
The Dex of the AMM category can rise because the quotation information is abandoned, but the cost is that the price cannot be found (can only be arbitrage), and then the LP has to bear the impermanence loss. Derivatives on the chain require a very high frequency of quotation of underlying assets, and the performance of Ethereum is limited. The solution is a better public chain (to change the ecosystem, but also to sacrifice security), or Layer 2 (to sacrifice a certain amount of security) ) Decentralized asset management strategy does not require such a high frequency (except for high frequency), such as mining, Long/Short, Staking, low frequency and low cost. Therefore, blockchain performance is not a bottleneck.
low cost
An asset management platform such as dHEDGE is in the form of a community itself, giving KoL room for display, and can form investment communities like Seeking Alpha, Motley Fool, and Snowball. The traditional centralized investment community faces a huge gap between KoL and issued products, including regulatory compliance, rent, personnel and other expenses, which require at least several hundred thousand US dollars a year. Although the establishment of decentralized asset management will also incur costs, the total cost has been reduced a lot. Most of the functions rely on the platform, and the fund manager can complete it alone. Many KoLs are participating and directly connected to Twitter, and their influence is directly realized.
Can start from a very small pool
Decentralized Crypto has a low investment threshold. For example, there are pools managed by 370 investors on dHEDGE. The size of the highest pool is only more than 5 million, and only 8 of them exceed 1 million. As long as there is a basic Idea, you can run one. combination.
Simple strategies can be applied
Taking the largest combination Convex Strategy on dHEDGE as an example, two strategies are applied: BTC’s Long/Short strategy and digital asset subjective trading strategy
Other on-chain DeFi mechanisms, such as AMM, derivatives, or lending, (at least for now) are all 2C. And their centralized opponents are also 2C, which means that they are competing for the same customer group.
From the perspective of asset management, centralized asset management is actually 2B for high-net-worth individuals and institutions, while decentralized asset management is 2C, and it actually faces different customer groups. Moreover, the investment scope of centralized asset management is far from that of decentralization, so the user level is misplaced competition.
The main comparison with centralized asset management is as follows:
Advantage
insufficient
Breakthrough opportunity
The completion of the real cross-chain makes on-chain management not limited to the Ethereum ecosystem;
Crypto assets are differentiated to a certain extent: for example, the market value of other than Top10 accounts for a certain critical point, for example, the share of DeFi or NFT reaches a certain range, or the share of BTC’s market value drops to a certain position, such as less than 40%;
Some typical events are catalyzed (such as negative shocks). Negative shocks are often the beginning of standardization, clearing out mixed projects.
Hedge funds in traditional finance are more like decentralized asset management. Hedge funds are born with multiple strategies, such as long and short, arbitrage, fixed income, global macro, relative value, etc., which can find corresponding models in decentralized asset management .
Looking back at the 100-year history of the development of traditional hedge funds, it has only entered a rapid development stage in the last 30 years. The starting point is that after the 2008 financial crisis, hedge funds have moved from the previous scattered development to formal management, and investors have also begun to believe that this is a category. Reliable alternative investment, juxtaposed with PE/VC, real estate, derivatives, commodities, art, etc. The hedge fund industry is also subject to market volatility, such as the 2008 financial crisis and the tech bubble in 2000, which have all entered a trough.
Hedge funds have short-selling strategies, but they still rely on the rich liquidity of the market, so they are still developing best in the bull market. The past 20 years have been the best time for the development of hedge funds. AUM has grown from 1.1 trillion US dollars in 2005 to 3.3 trillion in 2020. The general background is that the scale of the global stock bond market is also expanding. In the same period, the AUM increased from 35 trillion to 97 trillion.
Using a rough statistical standard, we found that the market value of this hedge fund AUM/stock market is about 3%-4%. Therefore, the greater the market value, the greater the living space for asset management such as hedge funds. At present, the total market value of encrypted assets is 2 trillion, and the market value of DeFi is 120 billion. There is still a lot of room for decentralized asset management.
We see that whether it is active, passive, machine gun pool, or asset package, the existence of fund experience is required. Machine gun pool requires strategists to write code. Active management requires fund managers to develop allocation strategies. Passive requires overall judgment of the overall market. Asset package Need to have a keen sense of smell for the NFT market and food. The complexity of DeFi products also means the diversification of investment tools. The more complex DeFi, the more room for fund managers, which also creates space for asset management platforms.
It is reported that Wemade, the developer of the game’Legend of Mir 2′, is considering the acquisition of’Bithumb’, a cryptocurrency trading site.
According to the industry on the 15th, Wemade is discussing conditions to acquire a stake owned by Lee Jung-hoon, chairman of Bithumb Holdings and Bithumb Korea. The sale price is said to be more than 500 billion won proposed by NXC (Nexon holding company) and lower than the 700 billion won hoped by Bithumb.
Related industries agree that Wemade’s acquisition of Bithumb is more likely than the foreign financial companies mentioned as the acquirer. This is because WeMade selected the blockchain as a’food for the future’ and has been engaged in various blockchain businesses.
Wemade established a subsidiary Wemade Tree in 2018 to promote new blockchain business, and is promoting various blockchain businesses such as blockchain games and a decentralized transaction site (WeMixdex). The company develops and services blockchain games such as’Bird Tornado for Wemix’ and’Jaeshin Electricity for Wemix’.
In addition, WeMade Tree has also issued a utility token (cryptocurrency)’WeMix Token’ (WeMix) that acts as a key currency in WeMade Tree’s blockchain ecosystem (WeMix Platform). Wemix is listed on Bithumb last October and is trading.
An official in the cryptocurrency trading industry who requested anonymity said, “It remains to be seen whether it will lead to the actual acquisition, but it is not possible to say that the possibility of the acquisition is small as high-ranking Wemade officials are interested in the blockchain business.” I know it was correct that I had contact with him.
On this day, WeMade and Bithumb said, “There is no information that can be confirmed.”
Meanwhile, as the possibility of Wemade’s acquisition of Bithumb increased, the price of’WeMix’, a cryptocurrency issued by Wemade, soared more than 70%. Wemix traded for 1063 won, up 72.45% from the previous day at 6 pm on this day. Wemix soared to 1,164 won (high price) during the mid-day period.
[Blockchain Today Reporter Jihye Han] On the 15th, Casperlabs, the next-generation blockchain mainnet protocol based on Ethereum, announced that it has signed a partnership with WISEKey.
Through this partnership, Casper Labs announced that it will use blockchain technology, artificial intelligence and IoT together with WISeKey to build a large-scale digital identification (DID) ecosystem market for people and objects on the Casper Network. Casper Labs will provide services and support for WISeKey as it establishes the NFT trading market on the Casper Network.
WISeKey is currently a security partner for more than 3,500 brands including AWS, Microsoft, IBM Watson, and more, combining the security features of WISeKey with Casper Labs’ various developer tools for a wide range of enterprise NFT application use cases not previously available in the blockchain-based marketplace. And building business models.
Through this agreement, WISeKey said, “We will be the perfect partner to build a secure and unique NFT market in Casper Networks by utilizing WISeKey’s DID solution to be authenticated and identifiable in both physical and virtual environments.” Through Casper’s Proof of Stake architecture, it has been revealed that each transaction will enable smaller energy consumption than the existing Proof of Work protocol.
On the other hand, Casper announced that all public sales on the Coin List platform (Options 1, 2, 3, 4) were sold out last from the option 4 sale on the 9th, and pay attention to a number of scam websites and channels related to the Casper token sale. Said that.
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