Decentralized Funds and their Use Cases
Decentralized funds can offer great benefits to users. Various use cases help you investing in the market and handling your investment in a decentralized and trustless manner.
A few of this almost countless Use Cases are listed here:
Funds structured by Market Cap
A Fund structured by Market Cap can occur with a different number of Tokens. User will be able to create for example a Top 5, Top 10, Top 20 and so on.. Fund. The number of Native Assets can be overwhelming, so a Fund approach can help you to navigate trough the ecosystem in an easy manner while diversifying.
Stablecoin Funds
A Stablecoin Fund seems counter intuitive at first glance. A Stablecoin is (ideally) stable, so why combine them?
The last few years have shown that great financial risk can come with Stablecoins, the collapse of those have made the Crypto Community very aware of the disadvantages. But how can you diversify these risks?
With a Stablecoin Fund! Example: Let us say a Fund with 5 different Stablecoins is created. If one of them should start de-pegging from their original peg, the other ones in the Fund could help you minimize your risk by not driving the stable coin funds value down to 0.
Diversified Investments in certain areas of DeFi
We are all interested in Decentralized Finance, but what are you looking forward to the most? Is it Decentralized Exchange Protocols? Is it Metaverse? Is it RealFi? Is it Memecoins?
With a Decentralized Fund in a specific area of DeFi you can create your own fund tailored to your liking! With the help of this decentralized character you choose what to put in your fund and: What not to put in!
There are many options: Create different funds and be invested in different areas of DeFi. AI? Metaverse? DEXs? You name it!
Funds holding Tokenized Assets
In the future, Funds holding Tokenized Assets could change how we handle investments.
Imagine a world in which you can handle Traditional Asset Classes in a decentralized and trustless manner via Tokenized Asset Funds. Use the benefits of these investments (that are currently handled centralized) and combine them with what Decentralized Finance and Blockchain have to offer!
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