Phuture to Unveil Decentralised Index Protocol
For the past few years, DeFi has been one of the fastest-growing sectors in the crypto landscape. It is one of the most innovative industries that promises great potential in terms of what a decentralized future could look like. Some of the brightest brains in this world are working in this industry. So far, it has provided investors with a high ROI. So, naturally, more and more people are interested in allocating some percentage of their capital into crypto.
For the vast majority of individual investors, who don't have the time or interest to research the difference between Zero-knowledge proof and proof of burn, or what even is Sushiswap and Pancakswap and why do they sound like some delicious dishes, investing in crypto indices is the smartest choice.
Index funds are used extensively by investors in traditional financial markets. The beauty of index funds is their ability to represent a whole market or sector, their passive structure and low fees. Historical data has shown that passive strategies such as index funds outperform the majority of actively managed funds. Market data from traditional finance has shown that once the market matures, most investment shifts towards passive investment vehicles, and we expect the same trend to occur in DeFi and crypto.
Indices on the blockchain are different because for the first time the user has the power to create their own financial products that are totally self-sufficient. Moreover, the transparency and interoperability that blockchain affords means that benefits like token lending and meta-governance are passed through to the investor.
Phuture is an easy-to-use indexing protocol through which users can invest in token-based passive investment strategies. Phuture provides the tools to create new indices or invest in existing ones created by the community. The Index Creator can support an array of index options including automated sector tracking and dynamic weighting methodologies.
Phuture co-founder Alex Melnichuk said, "The Phuture protocol introduces a unique, scalable, aggregated index architecture that allows it to rebalance across multiple indices simultaneously. Its smart rebalancing engine dynamically ascertains the optimal rebalancing triggers, minimizing value lost through swaps and improving index performance."
Phuture has developed a rebalancing system that makes rebalancing decisions as per the initial allocation and strategy of the index creator. If the chosen strategy is market cap-weighted and an asset's price goes up, then Phuture's propensity to own more of that asset increases. Conversely, if it's a fixed weighted index, then it is going to be selling that asset over a period of time for other assets in the system.
Phuture's long term vision is to disrupt the DeFi industry by introducing the masses into the DeFi space and providing them a simple user experience combined with a backend powered by cutting edge technology over blockchain
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Official website: Phuture.Finance