On-chain asset management protocol spreads the risks
Now that PEAKDEFI supports both Binance Smart Chain and Ethereum, it has more than $50 million locked in its platform. Despite the accessibility of the Binance Smart Chain, Ethereum’s share is the bigger one with $30,66 million.
PEAKDEFI launched on Binance Smart Chain in March and has seen steady growth. In the last 30 days, its user base grew 40% to 2,630 active user wallets, while the activity increased 70% to 7,950 transactions. However, on Ethereum there have been only 695 transactions, showing a clear difference in the way users interact with the dapp.
PEAKDEFI is a performance-based asset management fund that allows crypto investors to spread out their risks easily across different assets. The platform uses fund managers or traders to grow the portfolio of investors. These traders invest, but also trade, spreading risk and creating a more stable investment. Technically anybody can become a fund manager, but you do need to acquire enough reputation tokens. The more fund managers there are, the more stable the output will become.
Investors that jump into PEAKDEFI basically buy shares in the fund. These shares remain active for a period of time, currently 30 days. After that users can claim their profits, or sell off their entire holdings.
In addition, PEAKDEFI offers a staking mechanism that rewards users that lock their assets for a longer period of time. They use their own native PEAK token for this.
PEAKDEFI performance analyzed
In the second trading period, the PEAKDEFI Fund closed with a 12% profit for investors. If this profit would be made every period, we’d be talking about 300% profit in a year. That’s a significant performance, one indicative of the generally positive trend the crypto market has been in this year so far.
The second phase was 60 days, and they’ve reduced the time of their phases by 50%. The next trading phase only takes 30 days, because they feel that 60 days is too long in the fast-moving crypto market. One trading cycle will therefore be 27 days, followed by 3 days of intermission.