Our thesis is simple.
People have been trying to build decentralized asset management since 2014. It 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.
The list goes on. Instead of building long-term portfolios on the blockchain, we wanted to build something with a much quicker turnover and shorter duration time. We came up with the idea of having Single Trade Vaults that are strictly focused on executing 1 trade only. You can think of it as Short-term Asset Management.
We call our vehicles STVs (Single Trade Vaults). Our project is called STFX (Single Trade Finance Exchange).
We hope to make it the first majorly successful SocialFi protocol.
Our idea is simple. 1 STV = 1 vault = 1 trade, created permissionlessly and managed discretionarily.
- This allows for much faster bootstrapping of Manager track records.
- Much shorter duration times between investment and outcome.
- And, probably most importantly, Managers don’t have to do anything “in between” trade opportunities.
- Investors can invest in Vaults that align with their own market expectations and preferred durations.
DeFi is undergoing a “Vaultification-of-Everything” moment right now, but most vaults are low-risk, low-reward. Our goal is to build high-risk, high-reward Vaults that are focused on the execution of discretionary single-trades.