Background

We started to become involved in cryptocurrencies in 2013; what commenced as a hobby subsequently flourished into a significant part of our portfolios. With the proliferation of the number of investment opportunities and the increase in the size of the investment, we started to look at how to improve our portfolios and incorporate diversification, asset allocation, and other basic and well-tested investment techniques. As the market grew, it became obvious that there is a need for both: professional portfolio management skills and a good understanding of how to build an infrastructure efficiently and safely.

Methods and practices that had been useful for us made us realize that a professional asset management offering could be scaled to serve a broader range of alternative investors. In our previous careers, we have been involved in the creation and management of various funds, and unironically the first step that needs to be taken is to choose an appropriate and efficient infrastructure.

We looked at the conventional fund infrastructure and some new Blockchain projects trying to re-imagine the fund industry. While studying the different existing platforms, we identified four requirements:

1. Rebalancing: Fund Managers can re-balance tokenized portfolios without investors’ giving up control of the underlying assets;

2. Custodizing: The dApp must take custody of the underlying assets on-chain, on behalf of the investors without third-parties involvement;

3. Pricing: Once the tokenized portfolio is listed on an exchange (centralized or decentralized), its pricing is harmonized to fair value through savvy and profit-seeking traders without the use of oracles;

4. Execution: The dApp must enable cheap and safe real-time subscription, redemption, and transferability.