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Erica StanfordDeFi Funds That Should Help Build Your Portfolio
Empowered by blockchain technology, DeFi is a developing market sectors said to be the bridge to the future of finance because of its potential to broaden financial inclusion, heightened security, freedom to innovate and open access.
Riding out this new financial wave are DeFi Funds, which promises to manage this new system better and radically.
Find out how the following DeFi funds can help your investment portfolio below:
DeFi Capital
Decentralized Finance Capital is a trusted partner for DeFi investments
Their products play an important role in the growing DeFi space, allowing investors to leverage blockchain technology and its immense versatility and potential for capital gain
The goal is to financially empower generations to come, something that is realistic, having seen the industry’s parabolic growth so far
The A+ Fund is an investment fund that works based on their self-designed Triforce Strategy, a method that is proven to leverage great DeFi opportunities. Read more about Triforce here
For low-risk investors, their Stability Fund is a low-volatility yield-bearing crypto product, which invests in stablecoins and stakes them on your behalf to generate a stable income
The unique selling points of DeFi capital are:
Stable returns for investors and a low level of risk through stablecoin investments, leveraging lending and liquidity, making it unlike any other crypto fund in the world
Strong fundamentals in place to manage the target-click-strategy for profit-taking with exposure to massive price pumps and dumps
Expert feedback from seasoned DeFi investors who want to educate and inspire their audience of investors
DeFi Capital is based in Utrecht, in the Netherlands
There are 7 members on the team with many years of combined experience in tech and investment
DeFiance Capital
This Decentralized Finance crypto-asset fund combines a mixture of fundamental analysis with activist investment
The DeFiance Capital company theory about cryptocurrency and DeFi, in particular, is that ‘As software ate the world over the last decade, DeFi will eat traditional finance during the next decade’. The website header confusingly states ‘we invest in DeFi eating traditional finance’, but this mistranslation may be down to the company’s origins in East Asia
The business is based in Singapore but is active in the DeFi scene all over Asia
The Fund has invested in a number of world-class DeFi technologies, such as AAVE, SushiSwap, Bancor, Balancer, and dozens more
DeFiance is transparent about its investment process, which involves looking at the value proposition of technology versus incumbent traditional finance. It also assesses the product-market fit, and token value accrual before making a decision on whether to invest or now
The fundamental analysis procedure of DeFiance is different to many competitors as they actively choose projects to work with, open up their network to, and support, providing guidance and leadership throughout, especially on things like tokenomics, governance, and growing a loyal and interested community. Rather than just throwing money at them, they really want to build a long term success where everyone wins
DeFiance Capital is the largest DeFi focused crypto fund in Asia, with more than $500m USD of assets under management (AUM)
Icoinic Capital - Defi Fund
Founded in 2017 and based in the Netherlands
The Icoinic DeFi fund is managed by Icoinic’s Investment Committee, who offer a deep knowledge of crypto assets, with a marked interest in the DeFi world
The committee applies three different strategies to the DeFi fund’s management, trying to manage drawdown risk and upside potential
This DeFi fund is targeted at high-risk investors and has not yet performed as well as expected, suffering against the volatility of the DeFi market
Interested parties can request a KID or investment fact sheet here
The minimum investment amount is €100,000 and entries/exits are made on Wednesdays at 12:00pm (European time)
The Icoinic DeFi fund has a management fee of 1.5% per year, charged weekly, and a 30% performance fee when it goes over the ‘High Watermark’, calculated and charged monthly. 1% redemption fees upon exit. Trading fees are charged to the fund by exchanges, blockchains, and banks as they occur
With a large minimum investment and some paperwork to go through, the sign-up process involves an application and a personal meeting with one of the 3 investment managers before filling out the final agreements and signing on the dotted lines
Icoinic’s team is 7-man strong
Panxora DeFi Hedge Fund
‘Panxora DeFi Hedge Fund delivers access to the potentially lucrative decentralised finance token market through a managed approach’
Strategy: Quantitive (Quant) Trading
The Defi Hedge Fund started trading on November 2nd, 2020
Panxora has been trading cryptocurrency since 2015, offering proprietary models that offer access to this lucrative market
The fund takes positions in 20 of the most liquid DeFi tokens, day trading them to make notable gains
The fund has the potential to provide a large return on investment, with a more stable return than a DeFi index or by taking long positions on DeFi tokens which are highly volatile by nature
Licensed in the Bahamas and Cayman Islands
Founded in 2014 by banking and trading executives
9 experienced financial professionals working in the fund
Offices or representatives on every continent
Spartan Group
Offices in Singapore and Hong Kong
Asia's leading blockchain advisory and asset management firm, founded by former Goldman Sachs alumni
Spartan offers an advisory service focusing on Blockchain, cryptography, and other digitisation technology-enabled startups. This service includes financial advisory, corporate consultancy, and support when entering the Asian financial market. Chosen projects can also approach the Spartan support with fundraising, M&A, strategy and corporate development, and corporate structuring
Clients include Blockfolio, IBM, and Solana
Another wing of the business is Spartan Capital, a digital asset management service that uses solid fundamental analysis to find great investment opportunities in the crypto world, using rigorous valuation analysis and robust risk management techniques
The team offers more than 20 years of research in investment research and capital management with backgrounds at world-renowned firms like Goldman Sachs
11+ employees with a mixture of interesting and respected employment and entrepreneurial histories
Woodstock fund
Woodstock Fund positions itself as an ‘Emerging Technology Investment Fund’, which makes DeFi a large part of its remit
In particular, they target startups that are based on Distributed Ledger Technology. This includes applications, public projects, DeFi projects, NFT projects, and Web 3.0 Protocols
Woodstock was founded in 2019, on the 50th anniversary of the iconic Woodstock music festival
Woodstock is actively looking for DeFi projects to invest in, and have already supported a number of well-known crypto projects, such as Elrond, Casper, and Band Protocol
The team is built up of over 15 experts, advisors, and venture partners
Woodstock Fund is based in India