The crypto market is booming without a doubt, but the $2.7T industry continues to suffer from extremely high volatility. However, with the advent of Ethereum, smart contracts, and Decentralized Finance (DeFi), a new investment opportunity arose that promises earning steady interest on digital assets, usually by lending or staking them. Called yield farming, it made DeFi become a true rival of finance as we know it and one of the hot topics in the industry with more than $100B locked in different projects in the search of exceptional yields. However, the space is still in its nascency; as a result, new risks emerge that can easily wipe out the holdings of the inexperienced - impermanent loss, smart contract exploits, malicious developers, scams, to name a few.
This has led to the rise of DeFi fund projects designed to help individual and corporate investors maximize their returns and minimize the risks in a familiar way - through a fund investment vehicle. One of those pioneering DeFi fund managers is Finexify with their Ethereum Green Legend Fund. When funds are managed by professionals, the risk-return ratio is unprecedented, and Finexify proves this with the extraordinary profits they have been generating since the beginning of the year.
What Is Finexify and the Ethereum Green Legend DeFi Investment Fund?
Finexify is a boutique investment firm with the aim to achieve long-term capital growth at unseen rates in the traditional financial world for corporate and individual investors alike. Established by an expert team, Finexify successfully navigates the complex world of decentralized finance and creates a bridge between the centralized and decentralized worlds. The team is currently setting up their Cayman operations with an open-ended mutual fund structure so that investors can join this new space in the old familiar way.
The founders of Finexify, Gary Guerassimov and Valentin Mihov, first became interested in the space in 2013 and have been professionally involved since 2016. While Guerassimov had founded a few startups, such as a cryptocurrency brokerage platform and a cryptocurrency payment gateway, Mihov had been the CTO of a blockchain analytics company before the two joined forces in early 2021.
Guerassimov said about the potential of DeFi: “We currently live in unprecedented times. The underlying blockchain technology on every established DeFi protocol is making history before our own eyes. We at Finexify, as market participants, provide easy and secure access and are an integral part of this financial revolution to be discussed in generations to come.”
While investors can join the fund with stablecoins and/or Ethereum, the firm follows a market-neutral strategy generating steady income in the two digital assets regardless of the fluctuations on the cryptocurrency market. To achieve this, the fund provides the assets under management as liquidity to multiple decentralized exchanges (DEXs), for which it earns profits from trading fees and various native tokens. As the whole algorithm of these decentralized exchanges is programmed in smart contracts on the blockchain and DeFi is notoriously known for the multiple security breaches and developer “rug pulls”, the team’s main responsibility is to audit thoroughly and select only those decentralized protocols that pass their strict security standards.
To maintain their spotless track record in selecting secure and high-yield-generating opportunities, the team continuously monitors the whole DeFi ecosystem, rebalances the portfolio according to a proprietary protocol, and performs constant checks for code updates, technical upgrades, as well as security issues.
Finexify clients include individual and institutional investors either without any previous exposure to the space, looking for opportunities to diversify their portfolios and generate extraordinary income, or long-term crypto holders searching for ways to multiply their digital assets securely and conveniently.
Finexify Investment Performance
Since the inception of the Ethereum Green Legend Fund on Feb 12, 2021, the team has been delivering on their promise for extraordinary alpha with a cumulative gross return of 49.55% on Ethereum and 65.2% on stablecoins. The profits are calculated in the digital asset provided by investors and do not take their dollar value into account, e.g., Ethereum reached just shy of $4,900 on Nov 10, while it started the year at $730.
With regards to the performance, Valentin Mihov, Finexify co-founder, said: “We have been exploring protocols on the Ethereum blockchain as well as on multiple emerging Ethereum-compatibles so that our stablecoin and Ethereum investors’ assets have been increasing with 5.5% to 7.5% p.m. on average for the last 8.5 months. As the market matures and becomes more efficient, we aim to generate around 3% p.m. We are also firm believers in Ethereum and expect our Ethereum investors to continue benefiting from the price appreciation of the cryptocurrency, which is currently the operating system of the whole DeFi ecosystem.”
As of Oct 31, Finexify has $3.1 million in Assets Under Management (AUM), and as the company has proven their strategy’s resilience to the cryptocurrency market volatility, they are looking to increase the AUM by 20x+ within the next few months.