NEW DELHI : Grayscale Investments LLC, based in the United States, which manages digital assets (AUM) of around $ 30 billion, has launched an institutional decentralized finance fund, or DeFi fund, which provides exposure to a selection of DeFi protocols peak.
DeFi refers to decentralized financial services built on distributed blockchain networks without central intermediaries such as banks, custodians and exchanges. Examples of DeFi protocols include decentralized exchanges, decentralized borrowing and lending platforms, and stablecoins.
A stablecoin is a digital currency linked to an underlying asset such as a national currency such as the US dollar or a precious metal such as gold.
According to the asset manager, over the past year DeFi applications have grown 20-fold to $ 55 billion in total locked-in value, the total amount of assets guaranteed by these services.
The Grayscale DeFi Fund includes 10 tokens, which represent several use cases for these applications, including DEX, loans, derivatives and asset management.
The 10 tokens are Uniswap, Aave, Compound, Curve, MakerDao, SushiSwap, Synthetix Network Token, Yearn Finance, Universal Market Access and Bancor Network Token.
Grayscale DeFi Fund provides investors with exposure to a selection of leading DeFi protocols through a market capitalization weighted portfolio designed to track the CoinDesk DeFi Index.
The asset manager would raise assets for the fund through a private placement offer, in which investors would be eligible to buy shares at a daily net asset value. The fund will bear an annual fee of 2.5%, while there will be no upfront charge or performance fee.
Grayscale offers 15 investment products, in which accredited investors gain exposure to the digital currency asset class in the form of a security without having to directly buy, store and hold digital currencies.
Grayscale’s investment products include six publicly traded investment vehicles: Grayscale Bitcoin Trust, Grayscale Bitcoin Cash Trust, Grayscale Ethereum Trust, Grayscale Ethereum Classic Trust, Grayscale Litecoin Trust and Grayscale Digital Large Cap Fund.
The company also intends to list the shares of Grayscale DeFi Fund on a secondary market.
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