About the fund
BlockchainTraders opened a new fund in 2021. The BlockchainTraders Liquidity Fund. Our experience allows us to recognise changes in the market and technology advancements. BlockchainTraders Growth Fund offers a directional investment which grows along with the cryptocurrency market. The new BlockchainTraders Liquidity Fund focuses on the new development in the blockchain ecosystem: ‘Decentralised Finance’. By anticipating on these developments, it is possible to achieve a high stable return while performing market neutral.
The fund achieves returns by Liquidity Mining. Market Making on central exchanges is similar to Liquidity Mining, the difference being that Market Makers ‘normally’ earn from the difference between the bid and ask price (the ‘fee’ for providing ‘liquidity’) and a Liquidity Miner receives an interest for providing liquidity. We use complex strategies to constantly move our liquidity between different DeFi apps to maximise returns and minimise risk.
The fund minimises risks by only providing liquidity in Stable Coins. These Stable Coins have a fixed exchange rate with FIAT currencies such as the US dollar. Therefore, the fund is market neutral, i.e., generally, not dependent on the market direction as an alternative for a directional investment in cryptocurrencies (like BlockchainTraders Growth Fund offers).
Detailed information
Liquidity Fund A
Factsheet
BlockchainTraders Liquidity Fund in brief:
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Fund Documentation
Liquidity Fund A
BlockchainTraders
| Legal structure | Mutual fund |
| Goal | To achieve a higher return than traditional risk asset classes with significantly lower risk than volatile cryptocurrencies through a market-neutral investment. The fund does this by applying Liquidity Mining. It is a way of generating returns with cryptocurrencies. |
| Fiscal status | Untaxed |
| Transferability | Non transferable |
| transferable Participation | Minimum 250.000 euros |
| Start-up costs | 1.295 euros |
| Management fee | 0,4% per quarter |
| Other costs | maximum 1% |
| Performance fee | 15% of the achieved positive return |
| Forecast return per year stress scenario | -14% |
| Forecast return per year worst-case-scenario | 6% |
| Forecast return per year moderate scenario | 16% |
| Forecast return per year best-case-scenario | 20% |
| Minimum maturity | 1 year, with an advised duration of 3 years. |
Liquidty Fund B
BlockchainTraders
| Legal structure | Mutual fund |
| Goal | To achieve a higher return than traditional risk asset classes with significantly lower risk than volatile cryptocurrencies through a market-neutral investment. The fund does this by applying Liquidity Mining. It is a way of generating returns with cryptocurrencies. |
| Fiscale status | Onbelast |
| Transferability | Non transferable |
| transferable Participation | Minimum 100.000 euros |
| Start-up costs | 1.295 euros |
| Management fee | 0,4% per quarter |
| Other costs | maximum 1% |
| Performance fee | 25% of the achieved positive return |
| Forecast return per year stress scenario | -14% |
| Forecast return per year worst-case-scenario | 6% |
| Forecast return per year moderate scenario | 16% |
| Forecast return per year best-case-scenario | 25% |
| Minimum maturity | 1 year, with an advised duration of 3 years. |