Financial services provider and funds management company Techemy Capital is launching DeFi-based investable products to help investors tap into the open finance ecosystem. DeFi’s blockchain-powered applications are recreating common financial instruments. Run by programmable algorithmic code, DeFi removes middlemen and connects principals directly, reducing capital inefficiency to enable higher yields. Hosted on the TokenSets platform, Techemy’s new offering consists of three initial actively managed investment portfolios. Techemy says it removes much of the friction typically found in investment products, offering no minimum deposit or lockups, 24/7 performance reporting, free withdrawals, and full transparency on the Ethereum blockchain.
Techemy Capital’s portfolios allow investors to gain exposure to BTC, ETH and a yield-bearing stablecoin pair. BTC and ETH portfolios are actively traded based on exclusive strategies designed to generate capital gains. Each portfolio is enabled with programmatic rebalancing, executed by Techemy Capital’s in-house traders. Custody functions are abstracted to the decentralised smart contracts, powered by TokenSet’s Set Protocol. Qualified investors remain in control of their assets at all times, and are able to withdraw and redeem instantaneously at their will.
In contrast, Techemy’s passively-managed cDAI-cUSDC portfolio is shielded from price volatility, but provides a number of other benefits: it exploits arbitrage opportunities and earns interest through the Compound Protocol. This portfolio will be launched shortly after BTC and ETH portfolios, with the “yield farming” functionality available later this year. Investors are also offered a basic hedging tool in the form of a purchasable cover against smart contract failure, serviced by Nexus Mutual.
“We’ve been talking about DeFi being a game-changer since 2014. DeFi is a recent term that’s come about due to the industry infrastructure becoming mature enough for innovative investable products to scale globally. Money and value are now woven into the fabric of the internet. Liquidity is abundant and risk is manageable. This is a radical shift and creates an environment that is appealing to many investor types,” says Fran Strajnar, Executive Chairman of Techemy Capital.
Techemy Capital (TCAP) is part of Techemy Group, which has been involved in the crypto industry since 2013. TCAP’s proprietary trading desk has been running a lower risk strategy for 18 months and has returned 55 per cent during the calendar year 2019 and higher still year to date, 2020. The company’s depth of experience, data-driven trading strategies, and knowledge of the global crypto markets set Techemy apart from other industry players.
“We realised that buy and hold strategies (hodling) were great in the early years, but many investors are currently not making acceptable returns without actively managing the exposures. DeFi allows investors to participate in trading strategies managed by professionals with a proven track record, or hold neutral positions in stable tokens which attract yields based on current APRs at the time. And all trades are public and self-auditable on the Ethereum network,” says Rob Brewis, Head of Trading for TCAP.
TCAP partnered with Set Protocol after recognising its industry leadership in asset management infrastructure. By utilising Set’s platform with state-of-the-art UX, Techemy Capital is able to roll out strategies that cater to the needs of accredited investors and professional money managers.
“We’re excited to work with Techemy to bring their sophisticated strategies to a broader audience beyond DeFi, and we believe that TokenSets offers the perfect platform to do so,” says Felix Feng, Founder and CEO of TokenSets. “This partnership between Set and Techemy Capital sends a strong signal to the market that DeFi is rapidly maturing. TokenSets offers Techemy highly reliable infrastructure to serve their needs so that they can expand their market offerings with confidence.”
Positioned as a hedge against exponentially rising systemic risk of the fiat currency system, negative interest rates and money printing, digital assets can now be put into work in a few clicks. On the initial launch of TCAP’s yield product this week, investors will get access to a product that is 100% liquid and instantly redeemable – better value than sitting on an idle capital as you can gain exposure to potential 4-12 per cent annual returns in income or 30 per cent in capital gains, all while keeping control of your private keys.
All portfolios are self-custodial. When an investor chooses to participate, their assets are deposited and locked in a smart contract, and a tokenised certificate of deposit is automatically issued back to the sender’s wallet address. This deposit token can be transferred back to the smart-contract at any time allowing capital to be immediately returned.
“With the speed of innovation in DeFi and quality of partnerships, Techemy Capital is able to roll out new investment instruments ahead of the curve,” adds Strajnar. “Furthermore, our relationship with BraveNewCoin.com will allow for decentralised index-tracked products to finally come to market. This will be another substantial product release planned for later this year.”
