Fund manager Panxora has started accepting subscriptions for the launch of a quantitative hedge fund designed to generate profits from the rapidly growing decentralised finance (DeFi) token market that will start trading on Monday, November 2, 2020.
Panxora, a licensed fund manager, has launched the Cayman Island-based DeFi Fund to give investors access to the DeFi market opportunities, while managing the volatility that is a characteristic of any new, rapidly growing market. It says this is made possible by the firm’s AI trading software, which is designed to give equal weight to profit generation and capital preservation. The models have been used to profitably trade cryptocurrency since 2017, the firm claims, adding they will now be used to identify and trade a variable basket of up to 20 of the most liquid DeFi tokens.
“While the DeFi market has grown significantly this year, we believe that this market is in the earliest possible stages,” says Gavin Smith, managing partner at Panxora Hedge Funds. “As the benefits to consumers start to be recognised, the potential is so great that what we are experiencing now is just the first of many dynamic moves upwards over coming months and years.”
Panxora says the appeal of DeFi is that decentralised applications or ‘dApps’ run on the blockchain allowing participants to transact business independent of a central authority that has traditionally extracted what can be multiple layers of profit from each transaction. Smart contracts can underpin loans, trading, insurance, interest bearing savings accounts, and more.
These person-to-person transactions could have a profound impact on global financial services, it continues, bringing real-world assets onto the blockchain and facilitating the transfer of trillions of dollars of assets including precious metals and fiat currencies, free from huge intermediary fees.
“This fund is meant for people that want exposure to DeFi but lack the resources to research this very specialist market themselves,” explains Marcie Terman, COO at Panxora.