DeFi accumulates power to take off, and the first fund project — the Hotpot Fund attracts attention at launching
Considering the macroeconomic situation in 2021, the deluge of strong stimulus policies will still be maintained, the inflationary pressure is still serious, the centralized finance is frequently questioned, but the digital currency and blockchain are highly sought after. From the middle of 2020 to the present, the biggest highlight in the blockchain is on decentralized finance (DeFi). The total market value of DeFi has been showing a great momentum of rapid rise, exceeding $80 billion recently, and sought after by financial investors from all walks of life around the world.
According to the latest news, the first DeFi fund project — the Hotpot Fund was officially launched on March 1st. In the first phase, users can invest through three stablecoins — USDT, USDC and DAI, to participate in investment. It is reported that the Hotpot Fund has raised more than one million dollars on its first day of launching, and continues to soar. The Hotpot Fund consists of a set of smart contracts deployed on the Ethereum blockchain, which can provide a convenient, safe and stable investment channel for those interested in participating in DeFi projects.
Some people may not be familiar with DeFi. DeFi stands for Decentralized Finance, and is a financial reform originated from the blockchain. Compared with traditional finance, DeFi uses smart contracts to formulate rules and strictly enforces through code. In essence, it is a financial method that uses machine governance instead of human governance. At the same time, all smart contracts are open source, which achieves a high degree of transparency, high efficiency and fairness.
Currently, the DeFi track includes lending, DEX, stablecoins, on-chain funds, aggregators, synthetic assets, etc. With more and more assets on the chain, 2021 will witness increasing new DeFi products and the booming market. The Hotpot Fund, as the first innovative fund project, fills in the blank of fund-based project in the DeFi ecosystem. The launch of the Hotpot Fund can provide a channel to participate for users, who may not be the professional investors in DeFi, by depositing funds into the smart contract of the Hotpot Fund, to easily obtain returns.
During the participation, investors can either deposit into or withdraw from the smart contract at any time. The deposits and withdrawals are settled in the native tokens of the fund, such as the DAI fund, all settlement is made in DAI. The investment of funds deposited will be made altogether by professional fund managers, who can only make strategies of portfolio investment within a limited range and have no right to transfer any asset in the smart contract. This smart contract-based investment made by professional teams, can minimize the participation cost, while at the same time, maximizing the returns in a stable and safe way.
The Hotpot Fund includes fund income, mining income and arbitrage income. Fund income is the basic income of Hotpot Fund, and obtained once the fund is deposited. The Hotpot Fund invests in the most reliable trading pairs of Uniswap among more than 20, 000 ones. The Hotpot Fund starts mining HPT (the native token of Hotpot Fund) to provide users with some additional mining returns. Arbitrage returns, slightly more complex, can be obtained with certain knowledge and coding ability, and will be an important driver of future returns.
At present, the investment of the Hotpot Fund is based on its investment philosophy and experiences. After ushering in an innovative investment model for DeFi, the Hotpot fund is expected to become a leading fund service platform in the future. Anyone with Uniswap investment experiences and his own investment philosophy can establish one or more funds through the Hotpot Fund platform, which indicates the future potential of Hotpot Fund.
Crypto market stands a chance to fly when there is favorable wind blowing from behind. Many people pursue profits at the cost of facing huge risks. However, the Hotpot Fund provides a stable investment way, so that everyone can quickly participate, and enjoy the dividends brought by technology evolution. 2020 witnessed a hot trend of traditional fund development, we are looking forward to seeing that the Hotpot Fund can set off a fund boom in the crypto space.