The evolution of the financial sector owes a great deal to the DeFi technology that has expanded the reach and functionality of money. With just a smartphone you can dabble into the DeFi sector which has the potential to grow the global economy.

What is DeFi

DeFi, or Decentralized finance, is built by merging traditional finance with a decentralized system like blockchain. DeFi aims to create alternatives to every single financial service that is available to the masses currently. DeFi democratizes finance by bringing hedge fund benefits to people who are not keen on investing a lot. With an actively-managed DeFi hedge pool, anyone can participate in investment opportunities reserved for the privileged few until recently.

While the entire DeFi sector is still in its infancy, it has shown its potential to go beyond yield farming, flash load and lending. Soon, DeFi will be mature enough to facilitate the most profitable aspect of financial transactions: Trading.

Myth - Hedge Funds is For Riches

Up until now, hedge fund managers were seen as these mythical figures in the financial landscape who could work magic with the hedge fund. An average person could not have access to hedge funds as the initial investment required to join it starts from 100K to 1 Million USD. A traditional hedge fund needed a lot of administrative costs, third-party costs, and start-up costs.

Decentralized Asset Management Protocol – iob.fi DAO

In comes the decentralized finance hedge funds, iob.fi DAO (Decentralized autonomous organization) which circumvents the layers of bureaucracy needed for managing a traditional hedge fund. DeFi allows anyone to delve into complicated trades which formerly was the prerogative of only rich and well-connected people.

Now you can benefit from arbitrage opportunities, derivatives, growth opportunities in stocks and commodities, and on-chain transparent transactions effortlessly with iob.fi DAO-governed, an on-chain hedged pool manager. Be it a retail investor or an institutional trader, with iob.fi DAO anyone has the opportunity to invest in a range of asset classes which includes crypto, commodities, stocks, and indices. All this can be done from a centralized place, the Web3 wallet, without any barriers.

iob.fi DAO Trading Performance

iob.fi DAO’s partners have been trading for over 20 years. Since 2008, they have led Wall Street in high-frequency trading (HFT) algorithm development “arms race” in both the USA and in China.

iob.fi DAO’s performance track record can be found here, with a 12-months model portfolio achieved a 142.48% in total return with very small maximum drawdown.

The difference iob.fi DAO makes

Traders need to set up trading accounts all over the world which will no longer be needed with the advent of iob.fi DAO. iob.fi DAO would also eliminate the need to make foreign currency exchanges in order to fund these accounts.

Credit: iob.fi DAO (https://iob.fi/)

iob.fi DAO Defy hedged pool is one of few actively managed DeFi hedged pools in the world that is tokenized.
iob.fi DAO is characterized by three words – Secure, Permission-less, and Robust.
iob.fi DAO is more than yield farming, food names, and indexing on DeFi. It is the gateway to a professional-grade trading system (Blackbox high-frequency trading, quant trading, algo) as they are made compatible with DeFi platforms employing Prodefy’s smart contract-native order interaction system.
iob.fi DAO’s underlying institutional-grade trading infrastructure, the Prodefy’s system, is built on the Web3 layer that is a breakthrough in the next-gen of crypto trading.

iob.fi DAO has a current yield of 28% staking reward along with a return of 20% (280% annualized).
iob.fi DAO trading operations are profitable as it employs proprietary bots called ioBots.

What are ioBots?

The team of iob.fi DAO has been engaged in algorithmic trading for the last 25 years. They have designed this advanced automated trading system, ioBots, which looks at the trading world as a system of interoperable components. It not just generates buy and sell signals but a set of tools that manages a trading position’s entry, holding and exit.

IoBots are designed in a way that they follow the principled trading methods that set clear annual trading objectives. It then devises various strategies to meet the goals or objectives that have been set.

ioBots generates a proprietary trading indicator called Market Types that is currently available free of charge.

Before a trading decision is made, ioBots first determine what market type the trading pair is in at that moment. It will then choose the appropriate strategies to execute the order.

Credit: iob.fi DAO (https://iobots.pro/market-types)

Why fund investors and traders choose iob.fi DAO?

Online trading can be toxic, especially in the crypto scene. In the crypto world most so-called "traders" are first-time traders and have no clue of what it takes to be successful in this arena. You would find most promoters/websites promoting the short-term results and could rank even a one-day result as "the top ranked fund manager". In this chaotic world iob.fi DAO is trying to make a mark and find its way and is inundated with hacking every now and then.

Mostly fund managers diversify to reduce portfolio risks but iob.fi DAO trades in as many classes of assets as possible mainly due to the two reasons stated below:

More trading benefits – Crypto markets are highly correlated, and they move up and down almost simultaneously. The market also moves sideways 70-86% of the time. iob.fi DAO determines marketing strategy based on market types and stays away from choppy markets. Multiple asset classes gives iob.fi DAO more trading opportunities at all times.
Overseas traders can get easy access to multiple asset classes – Most of iob.fi DAO’s investors are looking to get more exposure to their assets than what their home country provides. But they are limited by geographical and political barriers and the high cost has tied the hands of small retail traders to have global market access. iob.fi DAO, with its trading in smart-contract-enabled synthetic assets, offers a decentralized platform to any and everyone to trade liquid assets across the world.
Steady, low risk, low-double digital annual growth objectives.

Assets Under Management (AUM) Growth

iob Defy hedged pool aims to grow its AUM to be over $300 million in total assets, offering a low-risk, moderate-growth portfolio to both institutional and retail investors around the world. (It is currently not available to the US residents.)

The FI Token

The FI token fulfills many financial and transactional functions and the FI token is the governance token for managing the entire dApp platform. With its very short total supply, it will have a high demand once the Defy hedged pool reaches a value of 100 million AUM. The FI Token is currently trading on Uniswap, or on iob.fi DAO Token Request page, for a little over 6 ETH ($3,700) per FI Token. It is priced as an investor-class token.

Extremely low total supply: Only around 10,000 FI tokens will ever be minted.
Hugh potential demand by DEFY hedged pool investors: iob.fi DAO clients are given an opportunity to have a say in all of its major management and investment decisions. It is estimated that even at $10 million AUM, the demand by iob.fi DAO’s clients for the FI token will be around 5,000 tokens, while the estimated total circulating supply is only around 2,000 in 2021.
As a major hedged pool manager, the FI governance token would be accumulated by its clients, especially the institutional investors.
One does not need to pay 6 ETH to own an FI token since one can buy a fraction of the token for as little as $25 currently.
For each $25 purchase of the FI token, the token holders are given an opportunity to win 100 USDT in the beginning of February, 2021.
With incentive governance voting, FI encourages community involvement which is beyond sheer economic benefits.
Every successful vote receives a 0.05% inflationary token reward.
Iob-fi pool investors are also given staking rewards with the FI token.
FI is set to be listed on both DEXs and large crypto exchanges.
There are various staking reward rates based on staking size and vesting period.
With FI incentives the iob.fi organization aims at value creation and economic growth. Demand for services and FI are linked which enables iob.fi to benefit from the success of the services it delivers.

Conclusion

There are many DAO’s who promise a lot but do not live up to that. They have low participation, and they are also not truly decentralized in their decision-making process. With the novel approach of iob.fi DAO, some of these problems would be resolved. iob.fi DAO aims at delivering above-average results and low market risks. Its key to trading success is consistency, which is at the center of every position entry, holding, and exit decision.

With the growth of its business and assets under management, iob.fi DAO’s governance token could attract a high demand from its clients alone, while the total supply is capped at around 10,000 FI tokens. There is a potential big upside.