Today, Revix – a Cape Town-based investment platform backed by JSE listed Sabvest – launches a new bundle aimed at investing in the top 10 decentralised finance (DeFi) cryptocurrencies, weighted by market cap.
These cryptocurrencies are revolutionising the financial system by using smart contracts and blockchain technology. According to DeFi Llama, roughly $200 billion is locked up in DeFi protocols, from almost zero three years ago.
DeFi not only recreates the traditional financial system, but improves on it, making it accessible to everyone. It does this using blockchains and smart contracts that allow users to invest, earn interest, lend, borrow and make payments.
The stunning rise of decentralised finance was a key focus in the Blockchain Africa conference held last week, with Cardano founder Charles Hoskinson predicting that Africa will have a pan-African cryptocurrency within a decade, all residing on the blockchain and impervious to governmental interference.
“In this business, you are your own bank,” said Hoskinson. There’s no monthly admin fee for storing cryptos in wallets, and the costs of making payments and remittances are a fraction of that charged by traditional financial service providers. The rates of interest offered on these platforms also far exceed those available through most banks.
“If you believe in the future of decentralised, automated and digital first financial systems then this is one way you can gain exposure to what is almost certain to become one of the fastest-growing market segments in the crypto universe,” says Brett Hope Robertson, head of investments at Revix.
The Revix DeFi Bundle currently holds cryptocurrencies such as Uniswap, Aave, Thorchain, Anchor and many more. But how has it performed?
The Revix DeFi Bundle has outperformed the likes of Bitcoin and the traditional financial services space over the last calendar year. The Revix DeFi Bundle produced returns in excess of 137%, far outweighing the 63% of Bitcoin and the 36% of the US financial services sector.
Why invest in the Revix DeFi Bundle?
DeFi is poised to disrupt traditional finance
The global stock and derivative markets are valued in excess of $2 quadrillion, an almost unimaginably large number, and DeFi is poised to disrupt it, says Hope Robertson. “With the DeFi sector currently valued at just over $190 billion, it has only captured 0.01% of the market. It only makes up 1.6% of the global banking industry, showing just how much potential it has to grow.”
Hope Robertson says the composition of the bundle was designed after extensive back-testing. “We decided to weight these DeFi crypto assets by market cap, rather than give them an equal weighting as we did with our other bundles. This decision was made because market cap weighting delivered a better Sharpe ratio [which measures the performance of an index against a risk-free asset] over time.”
Cryptocurrencies have a slim correlation to other asset classes, providing diversification benefits to an investment portfolio. DeFi is one of the largest sectors within the crypto market, and owning a diversified bundle of DeFi assets enhances diversification. The main benefits of diversification are decreased risk and volatility that still enjoys high returns.
Automated monthly rebalancing
This bundle automatically rebalances (slight changes to the weighting and assets in the bundle) on the first of every month. It takes advantage of opportunities available from the most reputable DeFi cryptocurrencies through buying or selling each asset. This dynamic and fully automated approach makes investing effortless, maximising your returns and saving you time.
“This is what crypto is built for. People have overlooked this over the last year, and it’s the highest investment segment of the crypto universe,” says Hope Robertson.
A look at some constituents
One of the DeFi Bundle’s more interesting constituents is Thorchain, a cross-chain decentralised exchange (DEX). One of the main issues with blockchains is their ability to transfer assets across blockchains. This means assets minted on a blockchain like Ethereum cannot be used or directly traded to another crypto blockchain, like the Bitcoin blockchain or Binance Smart Chain.
Unlike Uniswap (the biggest decentralised exchange), Thorchain allows users to swap native cryptocurrencies between multiple blockchains. Uniswap only allows cryptocurrencies to be swapped on the Ethereum blockchain itself.
“In the world of DeFi, there is a massive need for cross-chain transfers as more and more protocols want to integrate and collaborate with each other,” says Hope Robertson. “All of the assets in this bundle bring something unique and different to the DeFi space, and the bundle will be adjusted as new crypto assets emerge into the top 10 rankings, as measured by market cap. This is an exciting space to watch in the years to come.”
From today (March 25) you will be able to purchase a brand new Revix bundle from our platform. If you haven’t heard of DeFi (decentralised finance) yet, it might be because it’s a new technology, and we’re early! It’s not every day you get to invest in a game-changing technology this early on in its development.
And to celebrate, Revix is cutting all buy-in fees for any DeFi Bundle purchases from March 25 to 31.
Revix brings simplicity, trust and great customer service to investing. Its easy-to-use online platform enables anyone to securely own the world’s top investments in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
For more information, please visit www.revix.com
This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
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