The cryptocurrency industry and the DeFi sector, in particular, have been exploding for nearly two years now, thereby attracting more and more institutional investors and high-net-worth individuals (HNWI). However, the promise for high returns does not come without risks; high volatility, security concerns, and lack of regulation are among the main factors which make potential investors reluctant to jump on the DeFi bandwagon.
Finexify aims to address these concerns by offering an investment vehicle that provides exceptional returns coupled with a safe, reliable, and familiar way into DeFi for HNWI and institutional investors.
What is Finexify? What does it offer?
Finexify is a boutique investment firm specializing in the nascent DeFi space. Founded in early 2021 by a team of blockchain and cryptocurrency experts, Finexify is currently setting up its Cayman-based operations to meet institutional investor requirements and avail itself of the local clear set of regulations towards the growing industry.
Through its flagship Ethereum Green Legend Fund, Finexify deploys a market-neutral strategy generating steady returns regardless of the cryptocurrency market conditions. It does this by engaging in the so-called liquidity mining (a type of yield farming), meaning that the assets under management flow into select emerging but thoroughly pre-researched and audited DeFi protocols. The team further utilizes a proprietary rebalancing optimization technique deployed to alleviate impermanent loss risk, associated with this type of activity.
What are the benefits of using Finexify?
So far, Finexify's strategy has proven to be exceptionally profitable, yielding results uncorrelated with the overall cryptocurrency market. For example, while the May market crash almost wiped out all cryptocurrency gains since the beginning of the year, the Ethereum Green Legend Fund recorded 8% and 11% increase for its Ethereum and stablecoin investors, respectively, for the month. Overall (from 12 Feb 2021 - 31 October 2021), the fund achieved 65.2% on stablecoin deposits and Ethereum investors saw a 49.55% return in addition to the 6x increase of the dollar value of their Ethereums for the year. With the maturity of the market, Finexify projects to achieve 30-50% p.a. for the investors in the Ethereum Green Legend Fund. The team behind Finexify, however, never compromises funds’ security for high returns. As the DeFi industry is still in its infancy, smart contract bugs or other breaches are always a possibility. That is why, Finexify’s experts assess each protocol and continuously monitor them for all potential risks before and after investing. The team also follows strict internal practices and protocols and always keeps clients’ funds in cold storage.
Valentin Mihov, Co-founder and Fund Manager at Finexify, said: "In the past quarter, we celebrated the successful crossing of the 6-month mark of our Ethereum Green Legend Fund. That has been an important milestone that proved our strategy's exceptional profitability. We stay true to our principles and keep performing ongoing in-depth audits of each DeFi protocol to ensure the safety of investor funds and the continuity of our spotless track record. Looking forward, we are equipped for a 10-20x increase of our AUM in the last quarter of 2021."
DeFi was recognized by many as the future of banking as we know it, and it is only a matter of time before DeFi starts overshadowing the traditional banking sector. Institutional investors are also beginning to realize the burgeoning industry’s potential, with more and more of them deciding to give crypto and DeFi a chance. With investment vehicles, such as the Ethereum Green Legend Fund, investors can diversify their portfolios and achieve extraordinary returns at a fraction of the risk this industry usually poses.