LONDON, UK / ACCESSWIRE / May 19, 2021 / There has been a lot of talk about ETFs in the crypto space. Well, what are ETFs?
The simplest way to describe an ETF is the analogy of grocery shopping at a store. When shopping for groceries, you shop for various grocery items but make use of one cart. In this analogy, ETF is the cart and the various grocery items are likened to the stocks, bonds, or crypto assets.
ETF (exchange-traded funds) is an investment fund that's a combination of mutual funds and stock. Like mutual funds, here people also pull their money together to invest in a fund. A single ETF can contain between 50-100 stocks or even 100-1000 stocks.
Exchange-traded funds have become more popular among both individual and institutional investors. This is because they're considered cheaper than mutual funds.
DeFi has been advancing in the asset-management through various investment products, one of which is Blockchain ETFs.
Blockchain ETFs contain stocks in companies that typically operate their businesses through Blockchain technology. As is well known, Blockchain technology is used in cryptocurrency, banking, and investment sectors.
What is Plethori?
Plethori is an investment platform focused on providing cryptocurrency ETFs. Also, it allows investors to create trustless crypto ETFs through the utilization of both Blockchain technology and layer 2 solutions. Plethori offers cross-chain trading for ETFs built on both the Polkadot and Ethereum network. Investors will be able to deposit capital to invest in a vast range of ETFs making it easier to invest across the entire cryptocurrency industry including NFTs, insurance, derivatives, oracles, Polkadot ecosystem of projects and a slew of many more creative baskets that the team has planned on releasing in due time.
The Problem Plethori solves
Traditional ETFs offer many advantages including not having to build one's investment portfolio, one security at a time. ETFs provide diversification, lower cost, professional management, and daily liquidity. Other additional advantages that ETFs offer include more transparency, efficiency, and flexible trading.
ETFs offer a lot of benefits as an investment area. Unfortunately, the cryptocurrency world lacks a similar system. Many investors are gaining interest in cryptocurrencies as an asset class, however, researching and building up a portfolio can be tedious. There's an apparent need for decentralized ETFs (built on Blockchain) that is created with both diversified cryptocurrencies, and also, one that's cross chain.
Plethori solution
The platform will connect the Ethereum and Polkadot ecosystem, empowering traders by providing a very wide range of ETF tokens to trade, invest and leverage the technologies of both blockchains to open new avenues and investment strategies.
Plethori allows for the creation of trustless ETFs by utilizing blockchain technology and layer 2 solutions. You can create decentralized exchange-traded funds on the platform by stating collateral to create unique ETFs with customizable perimeters. Then the published ETFs are to be traded by the community on the platform.
By creating an ETF, one can earn a percentage of each transaction fee on every trade on the platform. Additionally, one earns valuable NFTs that have utility on the platform. The leaderboard system will reward the top-performing fund creators with NFTs which gives them perks on the platform and partner project platforms- such as early access to release and a higher stake in APY.
Here are some tools the platform uses to achieve the intended solution:
Plethori offers cross-chain functionality and seamless trading between Polkadot and Ethereum.
ETF creation, gamifying investment, and trading achievement are rewarded using ERC-721, an NFT integrated into the ecosystem.
The platform has the layer-2 solution; it's built with optimism to enable ultra-low transaction fees and fast trading while still achieving high security.
Also, Plethori has a fiat gateway, which is a bridge to the traditional world of finance enabling investors to deposit fiat currency for investments and purchases.
What Makes Plethori a Great Solution?
The community members get to create the ETFs; this keeps the community active through participation and also provides a source of passive returns.
It allows investors to take advantage of changing trends in the cryptocurrency industry. This is because an ETF is diversified and is the easiest way to have a robust portfolio.
The fiat gateways make it possible for beginners and new investors to enter the market as well.
Leveraging the technology of both blockchains (Polkadot and Ethereum) opens new avenues for investment strategies making the platform a great solution.
Follow Plethori on their media channels to stay up to date with the latest news:
Official website - https://plethori.com/
Telegram - https://t.me/plethori
Twitter - https://twitter.com/plethori
Medium - https://medium.com/plethori
LinkedIn - https://www.linkedin.com/company/plethori/
Media Contact: RTC Media@RT.Capital
Website: https://RT.Capital
SOURCE: Plethori
View source version on accesswire.com:
https://www.accesswire.com/648111/Plethori--The-Next-Wave-That-Will-Be-DeFi-Decentralized-ETFs
