New Decentralized Finance (Defi) Protocol Neutll is intended to bring a hedge fund trade – once limited to advanced investors – to the masses in the form of a crypto token.
The protocol launches its NUSD “Synthetic dollar” token, designed to generate returns by Altcoin deals with a discount on freely available (OTC) markets, the team told Coindesk in an exclusive interview.
Neutrls also raised $ 5 million in seed financing under the leadership of Digital Asset Private Marketplace Stix and Venture Firm firm Passon. They were accompanied by Amber Group, SCB Limited, Figment Capital and Nascent In addition to a series of Crypto Angel investors, including Ethena founder Guy Young and derivatives trader Joshua Lim from Arbelos Markets, recently taken over by Falconx.
Tokenized hedge fund strategy
Neutrlll is the newest participant in the fast-growing schedule of protocols that offer hedgefonds-like investment strategies that are wrapped in a token with a stable price, often called “synthetic dollar”. $ 6 billion Defi protocol Ethena led the trend and yielded yields to token holders by keeping spot and short -lived futures too short, the funding percentage.
Read more: Resolv Labs raises $ 10 million as crypto investor hunger for yielding stablecoins soars
The structure of Neutrl is built around buying locked altcoins with discounts on private markets and then covering exposure with eternal futures. For example, a trader can acquire Solana’s Sol or Avalanche’s Avax with a discount of 20% of a foundation and at the same time open a short position for token. The return comes from the price range, not from the market movement.
This is a popular investment strategy for Hedgefonds that produces high double digits to advanced investors who do not want to take management bets on crypto prizes, Neutrl founder Behrin Naidoo explained in an interview.
But instead of manually managing these transactions, users can contain a single token – NUSD – that the strategy, opening access to a wider set of investors, he said.
With a stream of Altcoin, Neutrl estimates that there is a $ 10 billion market for closed tokens. This offers an attractive optional option for investors, especially when the crypto yield in decentralized financing is compressed into multi-year lows, Naidoo said.
The protocol is aimed at growth up to $ 2 billion in assets in the two years, he added.
