1️⃣Vaults
Last updated
Last updated
STFX Vaults, represent a novel DeFi concept introduced by the STFX Platform.
Every vault allows a Trade Manager to earn up to 20% in Performance Fees on profits they make for their Investors. A Trade Manager can increase their Performance Fees, Vault Capacity, and the number of live trades by Staking $STFX.
Each STFX Vault is overseen by a distinct trader who implements their personally crafted trading strategy. Every STFX Vault exclusively concentrates on executing a single trade, emphasizing a focused approach as per each individual trade. Traders are able to attach a video or an image to their vault to best convey their trade thesis and appeal to potential investors.
The execution of trades takes place exclusively on Decentralized Derivatives Exchanges, ensuring complete on-chain functionality, visibility, and non-custodial handling.
Any individual is granted the liberty to create or participate in a Vault, fostering an inclusive and open environment within the STFX ecosystem.
There are two ways in which users can invest in STFX Vaults:
Manual Investing: Users choose to invest in a particular vault on a case by case basis based on Trade thesis and Trade Manager reputation/stats
Subscriptions: Completely automated investing, with high speed capital calls. Trustless and non-custodial, funds are in full control of the user up until the subscription is utilized by a trader they subscribed to.
The long-term management of portfolios can often present a burdensome responsibility that is extremely stressful and anxiety inducing for traders. Notably, existing solutions have predominantly focused on spot portfolios and indexes, neglecting the exploration of alternative investment avenues.
The STFX approach is categorized by speed: faster execution and reducing duration of capital lockup, rather than pursuing the conventional approach of constructing long-term portfolios on the blockchain. In light of this, we conceptualized the idea of Single Trade Vaults, which exclusively concentrate on executing a single trade per vault. Shorter duration equals higher turnover, higher turnover means better reputation, better reputation equates to robust market signals, robust market signals manifests in better capital allocation.
This streamlined approach enables the rapid establishment of trader track records, significantly reducing the time span between investments and outcomes. Moreover, an important aspect of our innovation is that traders are relieved from any obligations "in between" trade opportunities, fostering greater efficiency.
Investors gain the flexibility to allocate their funds to vaults that align precisely with their market expectations and desired durations. While the DeFi ecosystem is currently witnessing a surge in the "Vaultification-of-Everything," where most vaults offer low-risk, low-reward profiles, our objective is to cater for much more of the market, offering high-risk, high-reward vaults that concentrate solely on the execution of discretionary single trades. This approach sets STFX apart in the realm of decentralized finance, empowering investors with unique opportunities for superior returns, and giving managers more freedom to achieve greater performance fees through well positioned and strongly executed vaults.
Participating in the STFX marketplace to invest in tradable ideas offers several notable advantages compared to traditional fund structures.
In traditional finance (TradFi), investors typically allocate their capital for extensive periods (ranging from months to years) and rely on active management. This necessitates continuous monitoring of performance and frequent adjustments to asset allocation within a portfolio—a responsibility that can be burdensome and cause apprehension for managers.
STFX revolutionizes this model by introducing discrete, single trade investments. Trade managers are no longer compelled to hold locked-up funds for prolonged durations. Instead, trades are executed swiftly, often spanning hours, days, or weeks. Following the completion of a trade, there is no pressure to immediately pursue a new one, allowing for greater flexibility and alleviating time constraints.
STFX has pushed its Subscriptions model live, which has a range of benefits for both Managers and Investors on the dApp. Users can Subscribe to Managers, which is essentially pre-investments into all of the Managers future vaults on the platform. Using their account balance, a user can decide to allocate a set amount for each Manager of their choosing, allowing that Manager to have access to instantly liquidity for their trades from all of their Subscribers. The beauty of Subscriptions is that the capital remains inside the investors STFX balance until it is utilized within a trade, and is also auto-returned back to a user on the completion of any trade, allowing for a never ending flywheel of investments.
With Staking Tiers, a Trade Manager can have greater vault capacity, bigger performance fees, and open multiple live vaults at once among many other perks.
By simplifying the investment approach, STFX enhances efficiency and reduces the managerial burden associated with traditional fund formats, while also giving Managers the instant liquidity they may require to execute any trade ideas they may have.
