Frequently Asked Questions
What is an STV?
We are pioneering a new concept called STVs – Single Trade Vaults – short-duration, non-custodial, active asset management vaults that are dedicated to one trade.
Think of them as mini-vaults that only exist for the duration of the trade.
STVs stand in contrast to long-term, continuous, multi-asset portfolios that have existed in DeFi and TradFi to date.
What is STFX?
STFX is a DeFi and SocialFi protocol for short-term asset management. As a user, you have the ability to either create or invest in STVs. A trade investor can freely tap into an open, competitive marketplace of investable trades that are actively managed for them. Trade managers create STVs that live for short periods of time — the duration of each trade. In simple words, STFX is a DeFi marketplace for Investable Trading Ideas.
Our idea is simple: 1 STV = 1 vault = 1 trade. Once in a while, many of us find an incredible trading opportunity. Until today, all you could do in such a situation was share your trade setup with your friends on Twitter or Discord. Besides trading your idea yourself, there was no way to share your opportunity directly with others or monetize it. The STFX platform allows you to turn your trade setup into an easily investable vehicle which can be funded by the community in minutes.
What happens when I send money into a vault?
When a trade manager proposes a STV, there is a designated amount of time to attract liquidity from users. A trade investor can freely send assets into a non-custodial, smart-contract powered STV. For the duration of the trade, the trade manager is in control. On profitable trades, users can then claim their principle + PnL.
So other people are trading your money?
Yes, our perspective is that at scale this would ideally allow retail to literally not have to trade anymore if they don't want, which we think is an excellent idea for 95%+ of retail traders for mental health & profitability reasons. Retail edge degrades over time, and this would allow them to tap into quant/other active traders' edges while providing these trade managers liquidity/leverage to execute strategies.
After a vault that I invested was cancelled before the planned trade was executed, my USDC claim had more USDC available than my original investment. Why am I able to claim a higher amount of USDC?
When you invest in a vault with a long trading idea, the USDC you deposit is swapped for the asset of the planned trade before the trade is executed. When the vault is cancelled, this asset is swapped back to USDC and, if its price is higher than the price of when you made your investment, this difference results in a larger amount of USDC available for you to claim.
You can claim more USDC because the asset ends up being swapped back for more USDC than in the original swap made at the time when you invested in the vault.
What technologies are behind the protocol?
At the moment, STFX lives on Arbitrum, an Ethereum Layer 2 system. Behind the scenes, trades are routed through GMX Decentralized Perpetual Exchange (DEX). See system flow: https://docs.stfx.io/system-flow
What about previous attempts at decentralized asset management protocols?
People have been trying to build decentralized asset management since 2014. This concept predates DeFi by years. And yet, despite all the attempts, it never really took off.
Some reasons we think this is the case:
- Crypto native participants don’t care about TradFi vehicles onchain
- Crypto natives are impatient, and have short attention spans
- They don’t want to wait for 1yr+ to figure out whether their money is with the right manager
- Managing a portfolio for years on end is actually burdensome / anxiety-inducing / high-responsibility, etc.
- Existing solutions focused mainly on 1x Spot portfolios and indexes thus far.
- Doesn’t produce as much dopamine / excitement for users as other parts of crypto.
How will you prevent scams?
A trade manager’s full history is 100% transparent on our platform - trade investors can view past win-rates and PnLs, specific trade history, amongst other data that can allow them to make sound decisions on whether or not they want to invest in a specific trade idea. In addition, trade managers have no custody of assets.
What are the requirements for being a trade manager?
Anyone is free to become a trade manager. As a trade manager’s reputation on the platform grows, their maximum vault capacity scales. This means they can take in a greater investment over time by proving a successful track record.
What is the $STFX token?
$STFX is the native token of the STFX platform, with a hard capped supply of 1B units, set to exhibit deflationary properties over time. STFX is designed as a utility token that services many key functions within the network.