About the fund
|HIGHER RETURN THAN TRADITIONAL PORTFOLIO*
The BlockchainTraders Liquidity Fund uses Liquidity Mining, also known as Yield Farming to generate returns. Liquidity Miners or Yield Farmers use complex strategies. They constantly move liquidity between different DeFi apps to maximise returns and minimise risk. The fund minimises risks by only providing liquidity in Stable Coins – these have a fixed exchange rate with FIAT currencies like the American dollar – eliminating the risks of exposure to cryptocurrency price changes. 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).
Opportunity: taking advantage of a revolution
- Unique access: with the Liquidity Fund, BlockchainTraders provides an opportunity for investors to take advantage of the revolutionary growth in Decentralised Finance;
- BlockchainTraders has in-depth experience and knowledge of this market and a proven track record in managing cryptocurrencies;
- The strength of the investment strategy lies in the active management of Liquidity Mining positions in order to maximize returns and minimize risks.
Riskmanagement: due diligence and risk mitigation
Risk management is crucial in the investment process, which focuses on generating the most stable returns possible and limiting downward movements in the long term. Risks are greatly mitigated by:
- Only selecting DeFi applications whose Smart-Contracts have been audited by reputable parties;
- Only offer liquidity in Stable Coins: due to the fixed exchange rate with FIAT currencies, such as the US dollar, the risks of being exposed to cryptocurrency price movements are eliminated;
- There has to be sufficient liquidity in the DeFi-application and in the Stable Coins;
- Continuous monitoring and reallocation of the DeFi-applications.
|October 18, 2021
|Lead Portfolio manager
|Michiel van der Steeg
|2% (first year only)
|Withdrawals / Deposits
|15% (lifelong HWM)1
|Bitvavo / Flow Traders
|Wwft Internal Auditor
Fund documentation Liquidity Fund
|Essential information document
|Product Information document
* Return since 31 December 2023 through 9 February 2024.
** Applicable to the BlockchainTraders Liquidity Fund.
1 High Water Mark (HWM), and no hurdle rate applies.
2 'Other' refers to accounting costs, registration costs at the AFM.
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