Decentralized finance, better known as DeFi, is paving the way for new financial tools and products never thought possible. Now, Buoy Finance, a fully decentralized crypto index fund permanently backed by a trustless asset pool, is upping the ante.
Index funds, whether in crypto or the traditional finance world, have a significant trust issue. That is to say, legacy index funds require your trust. To use them, you need to trust intermediaries such as brokers, platforms, and developers with keys to the kingdom.
What if a cryptocurrency index fund had trust built-in? After all, blockchains and smart contracts exist to make trust implicit without the involvement of third parties. That’s exactly where Buoy ERC-20 index funds make their entrance.
Please Note: This is a Press Release
Totally trustless & actually valuable ERC-20 index funds
In 2020, liquidity protocols like Balancer ushered in an era of pool-pegged index funds. Though novel and undoubtedly influential, such index funds have left users exposed to a weak peg between index and pool.
The resulting price fluctuations are prized by those who value volatility, such as traders. However, they put off investors seeking a reliable, stable, and potentially profitable investment product.
Buoy picks up where early cryptocurrency index funds left off by introducing zero-level value using fixed liquidity. Zero-level value means the fund has real value pegged, not speculative value floating between the pool and index fund.
This new method for providing liquidity, called Proof of Liquidity, is pioneered by the Buoy team to maximize the spread of backing for the assets sold in the token sale.
Buoy Finance DeFi index fund token sale is the first of its kind
The significance of Buoy’s entirely decentralized token distribution model goes beyond hype. In an ICO ecosystem wherein rug pulls happen daily, Buoy envisions a new way to build trust by fairly distributing assets and ensuring the team has skin in the game beyond profits.
Fixed liquidity in the pool is funded by the Buoy Finance token sale, of which there are zero team tokens minted. Instead, 90% of the funds raised go directly to the Initial Liquidity Injection, thereby minting tokens for private and public sale participants — not the team. Of the remaining 10% of raised funds, 60% of them are locked in a development fund and used for buybacks.
Funds used for developing Buoy DeFi products aren’t just left to accumulate value — instead, they’re put back to work in the Buoy ecosystem by buying back Buoy tokens from the pool. As such, 60% of locked funds are reinvested to add liquidity to the fund, compound in-network value, and signify the team’s commitment to the project’s long-term success.
- The Buoy token sale is now live! Head over the public token sale page to contribute before the December 21st, 2020 deadline — Finance
- See the tireless work being put into coding by the Buoy team — https://github.com/AlanStacks/Buoy
- Need independent verification? Buoy Finance’s code has been audited and is verified as secure — https://buoy.finance/images/audit.pdf
