Issues of the Investment Market Current Problems that Investors face
The desire of every investor is pretty simple: Maximum return! While some might be interested in the How, the majority of investors just want to enjoy the monthly growth of their money. The main key factors for investors are:
- Delivering the capital
- Getting the highest return
- Avoiding too much risk
It is not their job to choose the right assets nor to search for the right people who do it for them. But in traditional markets it’s exactly that way. They are usually overwhelmed by the huge amount of possibilities. Liquid assets like Bonds, Shares, CFD, ETFs, Futures, Raw Materials and many more are tradable on the markets. So investors can either educate themselves and get somehow through the asset forest or they have to search for someone who is able to do it. But there are many hurdles to get to the right person. Mostly, the best Asset Managers are out of reach for the average Joe.
A couple of years ago Cryptocurrencies were a pretty small area which just a few projects to invest in. Currently (Sep. 2020) there are already over 7000 Projects listed on Coinmarketcap.com and the market is growing rapidly, making it nearly impossible for investors to make the right choices.
PEAKDEFI Fund will solve these issues once and for all. Investors don’t have to choose between the vast amount of assets anymore. They don’t have to search for asset managers any longer, too. The only thing they have to do is to link their capital to the PEAKDEFI Platform. And due to the decentralized nature of the fund, investors will always stay in control of their funds.
PEAKDEFI Global Fund
Problems that asset managers face
Good Traders and Asset Managers usually have built their expertise over years and went through a lot of struggle until they got profitable. To share their skills with others they want, and deserve, a commission. In fact, like investors want to maximize their ROI, Asset Managers want to maximize their commission. But managing funds for others is not easy, especially in the traditional markets. There are a lot of bureaucratic hurdles to overcome. And then they have to search for new clients who have to trust them and have to deal with them, which costs a lot of time.
At PEAKDEFI Managers have to focus only on their assets and their trades, the thing they are good at. No bureaucracy, no acquisition, no dealing with clients. Good traders will get more Assets under Management and therefore more commission, automatically.
Solution: PEAKDEFI Global Fund
The general idea of a mutual fund is basically pooling your money with the money of other investors and investing it in a portfolio of different assets. The PEAKDEFI Fund is a Global Fund, managed by many Managers in a decentralized and smart way to get the best outcome.
When Investors buy a Share of the PEAKDEFI Fund, their deposit is converted into PEAKDEFI Fund Shares which represent their ownership in PEAKDEFI Fund and is fully backed by a collateral in the smart contract. As it is only one global fund, Investors don’t have the agony of choosing the right assets. There is just one fund to invest in. The decentralized implementation of the project ensures that the investors stay in control of their fund. They just have to connect their ERC-20 Wallet with the platform and can invest with a few clicks.
The fund distribution between the asset managers gets optimized automatically without any influence from outside. Everything is coded in Smart Contracts. The best traders and asset managers get the biggest share of AUM (Assets under Management) while bad traders lose shares or even their complete stake, if they made too many wrong choices. To automate this process a so-called Reputation Token for Managers was created (read more about it here).
For Traders PEAKDEFI is a great opportunity to start managing funds. As the platform and the fund is fully decentralized, everybody can start with just a few steps to participate as an asset manager. This will enable many good traders, who traded so far only in private or for small groups, to provide their expertise to a broader audience.
Of course, this open approach could also attract some unskilled traders, but there are mechanisms built in to separate the wheat from the chaff quickly.
PEAKDEFI Global Fund
Good Traders can build their reputation and can earn great commissions of up to 15% of revenues, based on their managed AUM. As the reputation grows so does their AUM.
Good performance of the fund will attract more investors which again grows the AUM for each Trader. The growth of the fund on the other hand will attract more good traders which stabilizes the performance of the fund. It’s a win win for everybody.
