Why We Invested in Formation Fi
We are proud to announce our investment in Formation Fi, a DeFi based cross-chain risk parity smart farming protocol that allows users to explore opportunities across multiple chains and access staking and unstaking functions several times a day.
Risk Parity in the cryptocurrency space
Risk Parity is an investment technique that has been developed and applied in the traditional stock market for many years and is known as one of the most famous and best-performing engineered investment strategies to date.
Risk parity primarily focuses on balancing investor risks and is implemented by spreading investments across different asset classes and utilizing available leverage to keep risk low and profits consistent. The use of leverage aims to diversify the risk of a portfolio losing value and target its outlook to capitalize on short-term gains and long-term performance.
This particular trading strategy has been used by big players in the stock market for decades and is classed as an exclusive technique reserved for the richest investors in these markets. However, today, with the power of blockchain and DeFi and the emergence of new technological opportunities, the concept of risk parity is being explored in the cryptocurrency space by companies like Formation Fi as an accessible solution for further wealth creation in this market.
DeFi smart farming 2.0 has arrived.
Built within the Polygon blockchain ecosystem, Formation Fi will deliver a robust risk-parity trading solution to the cryptocurrency and DeFi space. The team describes this new concept as “Cross-Chain Risk Parity Smart Farming 2.0”, a system based on algorithmically calibrating asset allocations across core asset classes like stablecoins, alphas, and betas to allow users to easily profit from yield farming opportunities across the crypto investment space.
Yield farming, also referred to as liquidity mining, is an investment strategy that has gained mass popularity through the development of DeFi protocols over the last year. It involves users pooling their crypto assets into a decentralized exchange (DEX) or AMM as stake, so it can be lent/traded. By doing so, users are incentivized with generous APYs and the chance of maximizing their investments by gaining reward tokens. Formation Fi’s Cross-Chain Risk Parity Smart Farming 2.0 solution will enable users to enhance their current trading strategies by executing these protocols across multiple chains, allowing them to stake and unstake several times a day. Moreover, by utilizing Formation Fi’s radical auto-diversification algorithm, users can implement multiple trading strategies and track their profits from a simple dashboard.
The FORM Token
The Formation Fi protocol will enable the minting of an index token, the $FORM token, to track underlying cross-chain DeFi assets and strategies. The token is described as a “triple utility token” as it allows a 50% revenue sharing allocation to holders and can be used for secret members-only liquidity pools. Furthermore, a share of the platform’s profits will be redistributed to holders of the $FORM token, which will provide them access to Formation Fi’s Darkpool AMM pools. When users accumulate FORM, they can sell them or swap them like any other ERC20 asset. Holders of FORM will also be granted exclusive governance rights to vote on the future of the Formation Fi protocol.
Why We Invested?
Yield Farming alongside staking and unstaking protocols are groundbreaking investment options that have been streamlined to the masses with the development of DeFi protocols. Formation Fi will further expand these investment opportunities for users to benefit from a one-stop-shop of yield farming alongside staking and unstaking options that can be implemented across multiple chains and managed from one place.
Formation Fi is a project we believe will take the crypto investment space by storm and disrupt the cryptocurrency investment space in its current form, and we are not the only players who are excited about Formation Fi and have invested in this new groundbreaking project. The platform has been successful in attracted at least $3.3M in investment from players such as the Founders of Bancor, Co-Founder of Polygon, Founders of Synthetix, Head of Investment at Huobi, Kenetic, Kosmos, Spark Capital, AU21, Shima Capital, X21 Digital, Momentum 6, GenBlock, GBV Capital, Lotus Capital, Shima Capital, TRGC, Brilliance Ventures, Moonwhale, Autonomy, Magnus Capital, Faculty Group, Clinchblock, Blocksync Ventures, CDF, ExNetwork, Raptor Capital, Titan Ventures, GD10 Ventures, Blockstar and Iconium.
About Formation Fi
Formation Fi revolutionizes portfolio construction by introducing risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks.
About Master Ventures
Master Ventures is a blockchain-focused venture studio helping to build the next generation of blockchain-based Web 3.0 system innovations within the crypto industry. Launched in 2018 by Founder and CEO Kyle Chassé, the company’s ethos can best be summarized in the acronym #BeBOLD: Benevolent, Open, Love, Decentralized.
Master Ventures co-creates with entrepreneurs and businesses worldwide to turn the best ideas into innovative and disruptive products. They do this by investing as strategic partners through offering advisory services to the projects they believe in. To date, Master Ventures has invested in over 40 crypto projects, including the likes of Kraken, Coinbase, Bitfinex, Reef, DAO Maker, Mantra DAO, Thorchain, and Elrond.
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