MatrixETF

The Logical Design of MatrixETF is shown in the following figure:

MatrixETF platform is managed by MatrixDao, which is a decentralized community autonomous organization. MatrixDao launched several lead conceptual ETF funds as the foundation of platform startup, and then gradually transited to community autonomy to jointly determine the construction and implementation of ETF products. The ultimate goal is to let community members make their decisions independently of the development and future direction of the platform.

MatrixETF Set is an ETF-DeFi protocol, which can provide investment portfolio and trading services for asset issuers/KOL, asset managers and individuals. Through this agreement, any user can create an ETF of cryptocurrency, receive capital injection from other users, and participate in the DeFi to generate returns.

Meanwhile, most ETF products on MatrixETF are supported by a basket of encrypted assets, which can be subscribed and redeemed at any time. These encrypted assets will participate in the interaction based on the DeFi ecology, such as Compound lending, Uniswap liquidity mining, etc., and generate Vault returns, which will be returned to the users holding ETF products and bring additional income to them.

MatrixETF (MDF) is the next generation of a decentralized cross-chain management ETF platform that aims to create a decentralized, automated, personalized and diversified portfolio for users, and help users easily enjoy long-term, stable and efficient financial services.

Since the first US exchange-traded fund (ETF) was launched in 1993, ETF development has come a long way. Investors are now generally aware that ETFs are an indispensable financial instrument. As of the end of October 2020, the volume of index products worldwide is about $10 trillion, and by 2023 it is estimated to exceed $12 trillion.

On the contrary, the development of ETFs in the cryptocurrency market is still in its infancy and has begun to take shape with the rise of DeFi.

n 2020, the cryptocurrency market has a new development opportunity. With the growth of DeFi projects represented by COMP, YFI, UNI, and AAVE, the value of the token has increased through mining, AMM, farming, and aggregators. This makes the cryptocurrency market no longer a single stage of spot trading and gradually forms the base currency represented by BTC and ETH, the public network ecology represented by ETH, BSC and SOL, the DeFi ecology represented by COMP, YFI, UNI, AAVE and Sushi, and the NFT ecology. represented by Flow, MANA, ENJ and CHR, the whole market and ecology are gradually maturing.

The crypto market has moved from the spot trading and mining stage to the DeFi + Farming stage and the crypto ETF has emerged.

With the DeFi boom, more and more investors are starting to tune in to the cryptocurrency market. But for beginners, the market is not so friendly. Investors not only need to weed out potential and valuable targets from many projects, but also face various complex processes such as wallet usage, smart contract verification, high gas processing fees, etc.

For ordinary investors, the simpler the investment, the better. They have the opportunity to invest without having experience in complex operations. Thus, the value of investing in an ETF index gradually appears.

In fact, investing in an index does not require investors to know too much about specific assets, but a general understanding of the industry is necessary. Anyone can allocate their assets to index products such as ETFs or mutual funds to access different portfolios of assets and make big profits. It's definitely "HODL".

While crypto index products may be few and far between, DeFi index products have emerged in the past few months. Meanwhile, with the rise in liquidity mining, many token indices provide additional benefits for liquidity providers (LPs). Therefore, by becoming the LP of the DeFi index, the investor's portfolio will receive a higher passive return when holding DeFi tokens. This makes the crypto index one of the most compelling investment opportunities in DeFi.

MatrixETF (MDF) is the next generation of a decentralized cross-chain ETF platform. Its goal is to create a decentralized, automated, personalized and diversified ETF portfolio to lower the bar for the crypto market for ordinary investors and help them achieve diversified strategic returns through a more user-friendly workflow and more efficient portfolio allocation to achieve long-term results. - urgent and stable growth of well-being.

With the boom in the DeFi market, more and more investors are beginning to tune in to the cryptocurrency market. But for these beginners, the market is not so friendly that there are some standards:

-They require a lot of professional knowledge and skills, including blockchain technology, transaction process, wallet creation, etc.

-The high volatility of the crypto market means that they need to spend a lot of time to monitor the trends and direction of the crypto market on a regular basis.

-An on-chain transaction requires higher gas fees and longer waiting times, and the trading and transfer process is complex.

-There are many blockchain projects in the market, many of which are scams and manipulations, so investors are required to have strong investment opportunities.

These requirements limit the ability of ordinary people to enter the crypto market and participate in DeFi, making DeFi a luxury for a small minority group.

For ordinary investors, the simpler the investment, the better. They have the opportunity to invest without having experience in complex operations. Thus, the value of investing in an ETF index gradually appears.

In fact, investing in an index does not require investors to know too much about specific assets, but a general understanding of the industry is necessary.

Anyone can allocate their assets to index products such as ETFs or mutual funds to access different portfolios of assets and make big profits. It's definitely HODL.

We believe that based on the diversity, operability, and programmability of the DeFi ecosystem, we can design and combine DeFi products in the marketplace, such as building LEGO blocks, creating more innovative financial products, ensuring close interoperability between them, and better interacting with others. financial agreements with an open license.

The goal of MatrixETF is to create a financial world where wealth acquisition is a passive and automated process. Anyone can make a fortune online, regardless of geography and infrastructure, and get an open and transparent investment portfolio and various investment strategies to quickly and easily participate in DeFi funding to generate income and incentives, and jointly determine the direction of development through the DAO community.

MatrixETF is the next generation of a decentralized cross-chain ETF platform. In line with the overall performance of the cryptocurrency market, MatrixETF will launch a series of concept ETFs to track the quality of tokens in the blockchain and DeFi industry.

The MatrixETF platform is operated by MatrixDao which is a decentralized autonomous community organization. MatrixDao launched several leading ETF concept funds as the basis for launching the platform, and then gradually moved towards community autonomy to jointly determine the creation and implementation of ETF products. The ultimate goal is to allow community members to make decisions regardless of the development and future direction of the platform.

MatrixETF logic diagram as shown in the following figure:

MatrixETF Set is an ETF-DeFi protocol that can provide investment portfolio and trading services for asset/KOL issuers, asset managers and individuals. Through this agreement, any user can create cryptocurrency ETFs, receive capital injections from other users, and participate in DeFi for profit.

Meanwhile, most MatrixETF ETF products are backed by a basket of encrypted assets that can be subscribed to and redeemed at any time. These encrypted assets will participate in DeFi ecology-based interactions such as bundled lending, Uniswap liquidity mining, etc., and will generate Vault revenues that will return to users holding ETF products and generate additional revenue for them.

The Matrix DeFI Index (MDI) is a kind of capitalization-weighted index fund that consists of the best DeFi protocols in the cryptocurrency market (including UNI, SUSHI, AAVE, SNX, MKR, COMP, YFI, CRV, GRT, etc.). ) and can track popular DeFi assets across the entire cryptocurrency market.

MDI issues shares according to market share and real equity, which means that each MDI share is backed by underlying encrypted assets and can be subscribed and redeemed at any time.

In the traditional financial world, ETFs or index funds provide more freedom and choice for the average investor. We believe that in the cryptocurrency market, MDI allows for better risk diversification and higher returns through a diversified DeFi asset allocation.

For new investors, MDI represents a great opportunity to get to know and invest in DeFi if they don't understand the market volatility and numerous DeFi projects.

Meanwhile, by subscribing to MDI, users can significantly save on Ethereum and other public network gas fees and pay only once to receive encrypted assets, including multiple tokens.

There are many ways to subscribe to an MDI fund, investors can choose from:

-Uniswap, Sushiswap and other DEXs

-MatrixSwap Platform

-MINT function of the MatrixSwap platform

The issue of funds on the MatrixETF platform is mainly carried out through the MINT components. Generally, there are three ways to release MDI:

1. Transfer to ETH, USDT and other underlying assets for the mint in exchange for shares of the MDI fund;

2. According to the composition ratio of the MDI fund, a basket of DeFi tokens is provided for the minting of MDI fund units;

3. One DeFi asset minted in exchange for shares of the MDI fund

The MDI Fund is made up of hot DeFi projects in the cryptocurrency market, including UNI, SUSHI, AAVE, SNX, MKR, COMP, YFI, BNT, CRV, GRT, etc.

MatrixETF uses a fundamental weighting method that is weighted by 70% of the market value of the trade and 30% of the fundamentals.

The price and number of tokens in circulation is determined through CoinGecko and CoinMarketCap, and the market value in circulation is determined by multiplying the price of each token by the number of tokens in circulation.

While reviewing the fundamentals, it will be analyzed based on the economic model of the token, the development of the project, the security of the agreement, the risk of the token transaction and the community fund (see “ETF Standards” below).

The figure below shows MDI:

The index will be re-weighted on the first day of each month. When the market value of an MDI fund exceeds $10 million, the number and proportion of tokens corresponding to each MDI fund will be updated at the same time.

MatrixETF Set is an ETF-DeFi protocol on the MatrixETF platform. Through this agreement, users can create a cryptocurrency ETF. It can be managed with the tools provided by the platform (including DEX transactions, lending, farming, management, insurance and various strategies, etc.) to attract other users to purchase / mint and receive commission and other benefits.

The MatrixETF Set aims to be the most reliable, secure and fully featured asset management framework for users. It can provide investment portfolio and trading services for asset/KOL issuers, asset managers and individuals.

With the MatrixETF Set protocol, you can:

-Create an ETF portfolio: You can deploy a token on the platform without permission - an ERC20/SPL token, which is a tradable basket of digital assets with smart contracts.

-Get Capital Injection: Users can mint Set in a variety of ways, including base minting (using native tokens) and NAV (single token minting).

-Trading: Integration with Uniswap, Sushiswap and 0x allows Set to customize the distribution of Set.

-Fee management : Set creators can participate in the management of fees based on usage, such as fund management fees, processing fees, etc.

-Participate in protocol governance: Use the token in the collection to vote on the protocol to participate in community governance.

-Participate in lending: earn interest in the lending market, such as lending on AAVE and Compound.

-Participate in farming: enter liquidity pools (such as Uniswap / Sushiswap / Curve) to earn interest from the Set.

-Trading with strategies: Quantitative trading and portfolio investment through various trading strategies provided by the platform.

MDF is MatrixETF Governance Token. MDF holders can participate in community governance and make decisions about what ETF products MatrixETF creates, investment strategies and ETF asset categories, etc.

MDF is a token deployed on the Ethereum and Solana blockchain network and has a maximum supply limit of 1,000,000,000 tokens.

MDF is the MatrixETF Community Governance Token, including the following use cases and utilities:

-Participate in MatrixETF Governance (Community Governed DAO)

-Buy Products ETFs / ETFs

-Add value by profiting from a variety of ETF portfolios

-Participate in liquidity mining to profit

-Mining rates

-Environmental value added

-Ransom and destruction

-Discounts on processing fees and other fees

-Matrix pointer

-Matrix Index is a cryptocurrency index fund designed to track quality tokens in the blockchain and DeFi finance industry.

The index fund is weighted based on the market value of each token. There is a basket of token assets of the fund, allowing for more risk diversification and better returns through a diversified DeFi asset allocation.

An exchande traded fund (ETF) is a type of security thats tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchande the same as a regular stock.