Investment Firm Plans ETF-Like Product for Compound Yield Farmers
The investment portfolio will give users exposure to Compound interest rates and, eventually, yield farming.
Jul 1, 2020 at 4:18 p.m. UTCUpdated Aug 19, 2021 at 2:53 a.m. UTC
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Correction (July 2, 03:00 UTC): An earlier version of this article misstated the timing of the Compound portfolio launch. Techemy plans to roll it out next week, and the yield farming feature is to come later in the year; neither is available yet. The article has also been updated to include additional details.
New Zealand-based investment firm Techemy Capital is preparing to launch a Compound investment portfolio, which would be comprised of proxies of stablecoins dai and USDC.
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- The product, slated for launch next week, would allow holders to earn interest on decentralized lender Compound and, eventually, gain exposure to "yield farming."
- The portfolio would begin to "yield farm" – borrow against itself to release free COMP tokens on users' behalf, later this year
- Yield farming has turned into such a feeding frenzy that Compound changed the distribution model Tuesday to stop traders from gaming the system.
- At press time, COMP tokens traded at $214 after peaking at $350 just over a week ago, according to CoinGecko.
- All three portfolios are built on Ethereum and are self-custodial, only available to accredited investors.
- Fran Strajnar, Techemy Capital's executive chairman, told CoinDesk: "These initial products can maybe be viewed as a 'mini ETF' for now."
- Techemy's proprietary trading desk will actively manage the bitcoin and ether portfolios.
- Strajnar said Techemy was working with Japanese banks and asset managers to roll out a fully-fledged ETFs sometime in Q1 2021.
- Nexus Mutual is offering optional insurance against smart contract failure to investors in the portfolios, which are hosted on the TokenSets platform.
- Nexus' business has been mushrooming lately, and it paid its first claim, demonstrating its wherewithal as an insurer against smart contract failures.
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