DEXTF Newsletter #23
Rebalancing | DEXTF-9 | Listing on P2PB2B | Important Announcement | Passive or Active Investing?
Hey Everyone,
Welcome to this week's edition of the DEXTF Newsletter!
You can follow the community conversations on Discord, Telegram, Twitter, and Reddit!
DEXTF updates
Our first rebalancing went live
DEXTF-9 on LM rewards reduction has passed.
We are now listed on P2PB2B
Trading is now live with the first pair DEXTF/USDT on @p2pb2b!DEXTF has been listed on P2PB2B @dextfprotocol lets you create Structured Tokens that combine the features of multiple different DeFi projects: yields, derivatives, synthetics, options, etc. https://t.co/JIEZP5St14 🔸Website: https://t.co/oY2K6HZiaV https://t.co/yDdxojcmPdP2PB2B Exchange @p2pb2b
We announced one exciting piece of news!
For those that want to dig into what’s DEXTF, this is a good start:
$DEXTF is here to change the fund management industry. We need everyone on board. That’s why everything you need to know will be on a consistently updated in this thread. It’s not supposed to be sequential so just jump in to whichever section you’re most interested in. 👇Also, DEXTF is hiring! If you think this is you, reach out to us. DMs are open
Portfolio Metrics
[As of 30th September 2021].
Please refer to the DEXTF website for the latest APRs:
DEXTF/ETH is offering a 84% APR
XTF/DEXTF is offering a 41% APR
You can also earn $DEXTF by providing liquidity on Uniswap (29.6K tokens daily) or investing in any of the XTF funds (12K tokens daily)
Current TVL is US$2,204,348
You can invest by buying on Uniswap or on the DEXTF app
Here’s a quick guide on how to buy
Protocol Revenue
DEXTF has a cumulative treasury revenue of US$294,353 since the Treasury started.
Over the course of this week, the treasury accumulated these Assets:
40 $XTF2WWWAAC
30 $XTF2XXXXTF
15 $XTF2YYYBOX
8.46 ETH
Concept of the Week
⚖️ Passive or Active Investing? (in crypto)
In TradFi, the debate over whether to choose an active or passive management style in investing is an ongoing debate that is fundamentally based on a simple view: market efficiency.
Today, we take passive investment, which includes buying and holding an asset over a long time horizon, for granted.
But let's take a step back.
What are the main points of passive vs active?
Passive:
tracks an index (a collection of tokens with fixed weights)
information is always contained in the price (the market is efficient because information is always fully absorbed), hence no point in outperforming it
the index is the main character
Active:
the objective is to outperform the market (although in crypto is not easy to identify this benchmark, should it be Bitcoin? or the blue-chip tokens of a certain category?)
investors don't always think 1+1 =2
makes sense to make spend time on research to find the best opportunity to invest capital in
fund manager is the main character
Certainly, the digital asset space has shown mind-boggling irrationality which resulted in many millionaires being minted due to the myriad opportunities that crypto offers.
To some degree, passive and active investing each represents on a philosophical level, two very interesting views related to money.
Passive investing is a low interaction business where the investor buys and holds eventually paying little fees, freezing the capital for an uncertain return.
“An investment thesis proposed in 1951 by John Bogle (founder of Vanguard) was suggesting that fund managers couldn't beat the markets. Today, Vanguard Group, is regarded as the second-largest fund manager in the world.”
Index products or passive investing products are leading in TradFi, while active management has mostly been taken up by quant traders to generate return through the use of algorithms and HFT.
As indices do not require any expertise to replicate, investors would expect low fees. In fact, these fees decrease yearly while active management usually maintains the same cost structure.
The herd mentality of parking funds in passive investment vehicles could contribute to a possible failure of capitalism, because money can't chase the most productive opportunity, creating jobs and increasing the overall standard of living. On the other hand, this mindset might be caused by a general feeling of fair play and fair access since everyone can invest as barriers to entry are low. Naturally, as with all economic activities, this leads to a positive feedback loop in which more people believe in it and decides that passive investing is the way. Regulation is probably the unsung hero which leveled the playground and reduced risk, and therefore the expected returns.
Crypto fulfills all the criteria for active investing to prosper. Moreover, with the fragmented regulation, it's easy to sway newcomers - who represent the big majority of the investors - to make irrational decisions for a quick flip. There are also key opinion leaders from the TradFi world that are actually very skeptical about what crypto can accomplish or is accomplishing, putting further dents on the dwindling conviction of investors.
It is still extremely valuable to research in crypto and cut through the noise to find truly revolutionizing projects. This would be close to impossible to do in TradFi as naturally the barriers to entry are higher.
To conclude, active managers in crypto could be anyone, literally. DEXTF provides the tools to foster a truly global and talented pool of fund managers. From anywhere in the world, undiscovered talents and disciplined math wiz could launch a fund and start managing it for a fee (optional)!
Semper Fortis
DEXTF Team