For both retail investors and fund managers
The vision of PEAKDEFI is to enable everybody on the planet to grow their wealth, no matter what position they are in at the moment. PEAKDEFI wants to deliver this idea in a pooled way, or through a mutual fund allowing low-level retail users to participate easily.
The Idea of a mutual fund is pooling money with the money of other investors and investing it in a portfolio of different assets. The PEAKDEFI fund is a decentralized fund, programmed as a smart contract on the Ethereum blockchain, managed by different Managers.
Investors can invest in the contract and buy a share of the PEAKDEFI fund, whereas managers can participate in on-chain trading with the fund’s capital.
The platform is aimed at small investors and asset managers and was created to disrupt the whole investment environment by delivering a service that creates one global fund for everybody, transparent to anybody, governed all together.
Quantstamp audited smart contract
The PEAKDEFI system was reviewed and audited by Quantstamp, one of the best smart contract security companies, to ensure the security of the PEAKDEFI fund and the staking process. This fact can be verified by visiting the Quantstamps certificate database and search for “PEAKDEFI”. Or you can just click here to see the full audit report.
Investors can simply connect to the platform with their own ETH wallet and invest with Ethereum or 70+ other ERC20 tokens. All user deposits are locked in smart contracts without any third party having direct access to those funds. Importantly, as a non-custodial and permissionless platform, it never takes control of any assets.
It can be used directly from a wallet (i.e. MetaMask / WalletConnect) that only you control.
For Fund Managers
Instead of managing your fund, the idea at PEAKDEFI is to manage one global fund with many other managers together in a decentralized and permissionless way.
Like investors, the managers connect their Ethereum-wallet with the platform to interact with the smart contract. Managers can open and close trades, even margin trades, all in a decentralized way.
To ensure that managers have a fair share of the AUM (Assets under Management), so-called reputation tokens are used. A fixed sum of 100 reputation tokens must be acquired by every manager when he or she enters the platform and they reflect a certain share of the AUM.
How much AUM a Reputation Token represents changes due to various factors such as the number of active traders, the number of investments made to the fund, and other factors. If more Managers enter the fund it has to be shared between more Managers and therefore every Manager gets a smaller piece to manage.
But, on the flip side, more traders usually mean less volatility and therefore more stability for the fund.
One of the most attractive advantages is of course the profit sharing. Each manager receives approximately 15% of the total profit of the PEAKDEFI fund. This depends on the manager’s performance and the activity they have shown during the cycle of trading.
Another advantage is that you can start immediately as an asset manager by buying a reputation token to get a piece of the fund to manage without consulting different clients first.
That’s the beauty of a decentralized protocol, there are no boundaries.
The platform has big plans. Below is the current outlook on the roadmap.