ETFs are one the most preferred trading products in the world. A collection of different assets, these products offer the ease of investment diversification and at the same time, reduce risk. Traded in traditional markets, these profitable ventures have been out of reach of many people, especially the crypto community.
Plethori: unlocking ETF market
A decentralized trading platform, Plethori brings the exchange-traded fund market to the blockchain sphere. Leveraging the technology, Plethori offers an ecosystem that is more efficient and trader friendly. With blockchain, it does away with the need of middlemen and brokers that traditional ETF trade markets must interact with. The direct, peer to peer interaction means the traders on Plethori will not need to pay commissions, increasing their profits significantly.
Furthermore, the use of blockchain gives Plethori military-grade level security that the decentralized networks are famous for. At the same time, it offers transparency as anyone can view the distributed ledger, reducing frauds and insider trading. Additionally, Plethori has some unique features that make it more attractive than traditional ETF markets:
- Cross Chain: Rather than rely on a single blockchain and force participants to switch over, Plethori runs on Ethereum and Polkadot chains at the same time with Binance Smart Chain integration in the works.
- Scalable: Designed to be fast, Plethori deploys Optimism second layer solution to take the load off the mainnet, maintaining TPS even if more users join the network.
- Fiat Gateway: The ability to convert profits in local currency is assured through dedicated fiat gateways, giving a high level of liquidity to traders.
- Gamification: Traders are allowed to create ETFs and each creator is awarded an NFT token, which gets more valuable as the underlying ETF rises, incentivising traders to make the best basket of assets.
What are ETFs?
Exchange-Traded Funds is a financial derivative product that reflects the value of different assets combined as one. Using reverse correlated or uncorrelated assets in a single ETF can help traders reduce the risks involved. The wide range of assets that can be combined also means diversification, the basic rule of effective trading. This also saves a lot of time and effort for investors. Rather than spend time reading technical and fundamental indicators of multiple assets and securities, they can only concentrate on one ETF.
This has made ETFs very popular, with $7.73 trillion being traded in 2020, numbering more than 7600 types across the world.
The complete Plethori network is fuelled by its PLE token. PLE will use deflationary economics, with only 100 million tokens that will be minted. The Plethori team has set aside different PLE funds, such as 4 million specifically for the public users who will trade on the platform. The rest are set aside for institutional investors, seed funds, platform development, farming etc.
PLE serves a tri-fold means on Plethori:
- Payments: Accessing and using different Plethori services, although free from the intermediary commission, will require paying a transaction fee and PLE will be the primary token of payment.
- DeFi: PLE holders will be able to stake in liquidity pools for yields.
- Governance: Token holders will be able to vote for new features to the platform, including deciding which ETF gets to be listed on the platform.
Plethori lowers entry barriers to millions of people around the world by offering a better and easier alternative to ETF buying and selling, giving better profits and security by leveraging blockchain. The cross-chain functionality is also another plus, meaning traders will not need to swap assets to access the trading services.