Phuture — Passive Investment Strategies in a Web3 Environment.
Creating and investing in crypto indices can be a daunting task even for professionals, especially when the indexing is made up of multiple indices. Most times it is difficult to accurately calculate the assets that need to be rebalanced.
Since the advent of decentralized finance (DeFi), it has experienced unprecedented growth, and between 2019 and 2020, DeFi crossed the $1 billion mark; that was indicative of the fact that so many crypto users had shown interest in DeFi. Investors that got involved with Bitcoin began to show more interest in crypto investments, and especially in DeFi. Furthermore, different innovative DeFi solutions keep rolling out every moment, and thus it contributes to the overall growth of the crypto market.
There are indications that with the growing maturity of the crypto markets, there will be an increased interest in alt-coins, and this interest may be as a result of the activities of decentralized finance, because at the moment, DeFi has spread its tentacles to derivatives, lending and borrowing, exchanges, prediction markets, KYC and identity, and security.
One major problem with DeFi is the lack of a definitive benchmark for crypto indices, and with the increasing popularity, now is the time to have that index created.
Phuture is looking to bring that solution for crypto indices, by providing a platform that will facilitate the creation of crypto indices for investors to invest in. The flagship index will be used to pave the way to the top performing 5 DeFi protocols according to their market cap. It is intended that this flagship index is the benchmark that will define crypto indices through decentralized finance.
With Phuture, users will have access to passive investment systems that were impossible to achieve with tokens that hat single indexes. It provides investors with a platform where they can invest in diversified DeFi projects. Phuture believes that when a tracking of DeFi apps is carried out be an index, it should be performed based on the pioneer principles that guide the protocol the index represents. These principles include the following:
In order to ensure that security is at its highest level, smart contracts are used to ensure that its autonomy is controlled securely.
There are no management fees, as is the case of other index provision systems where management fees are paid annually.
- Open Access
The platform is accessible to anyone, and there are no minimums.
Phuture is a product whose core is designed to encourage people to use it without the usual superficial promises that some other platform make in order to attract people to use the platform. Phuture hopes to deliver an excellent product, build a supportive and thriving community, and then drive the community’s growth by offering value in the form of a token.
Two major things that make Phuture a unique platform is the security and simplicity that it brings to crypto indexing investments. The core features of the platform include the following:
- Index Architecture that is scalable and smart
One way that makes Phuture a scalable platform is through the actions of the single swap, as it simultaneously rebalances the multiple indices involved. Furthermore, with the aid of the smart rebalancing engine, the protocol is able to get calculations on the best performing assets in order to define and rebalance the various ranges where rebalance is needed. It may interest you to know that the platform is designed to support and handle a plethora of indices, with very minimal leaked values via rebalanced swaps. Basically, the index architecture makes it possible for scalability to thrive in a smart and secure way.
- Liquidity Hub
Users of the platform can invest in index, and also get access to the liquidity that is made available by the Ethereum network. This provides the investor with a wide range of assets and executions. Phuture takes it a step further by making it possible for trade executions to get separated when the minting process begins, and it is a function of the amount of liquidity that is available in the index fund. This is a way to ensure that there is uniformity in user experience without considering the size of the index. Furthermore, it takes away the tedious process of onboarding liquidity when dealing with new indices.
- Permissionless Protocol
This is an open design to facilitate the creation of passive investment systems. Phuture also provides the required tools needed for users to invest in existing indices that the community has created, or creating new ones. Another interesting part of the platform is that the Index Creator is designed to provide a collection of index options that include dynamic weighting systems and autonomy in sector tracking.
There are other amazing features that come with the Phuture platform, including the high level of security to ensure that user data and investments are kept safe and secure.
It is interesting to see so many innovative solutions coming out of the crypto community, and that is indicative of the fact that the world of crypto is showing real promise. Phuture believes that there are several use cases for the token economy, as well as a plethora of opportunities, and that is why they are intent on creating a platform to facilitate a permissionless architecture that will aid index investment and creation. The index products provided by the platform are expected to change and grow with the crypto token economy.
In April 2021, Phuture raised about $1.5 million in seed funding to facilitate the launch of the Phuture indexing protocol on the Ethereum blockchain, and the fund will be used to bring more development to the platform. Basically, with the decentralized protocol, users will have access to the tools needed to create and invest in passive index strategies, and all of that will happen using the Web3 framework.
The Phuture Initial Decentralized Offering (IDO) whitelisting has begun, and will be available to candidates who have been whitelisted; the public sale is around the corner.