Techemy Capital launches DeFi ETP on Balancer
Digital asset investment firm Techemy Capital has launched Decentralized Exchange-Traded Portfolios (ETP’s) built on onchain asset management platform Balancer, starting with a DeFi ETP.
Techemy Capital’s ETP’s allow for full self-custody by investors and consist of a portfolio of individual digital assets, wrapped in a thematic investment thesis and rebalanced quarterly.
The DeFi ETP is a physical representation of Brave New Coin’s Blue-Chip DeFi Index (comprising a portfolio of eight key assets). The DeFi ETP gives traders non-synthetic (physical) exposure to assets in the BNC DeFi Blue-Chip Index: Yearn Finance ($YFI), Compound Finance ($COMP), Aave Protocol ($AAVE), MakerDAO ($MKR), Synthetix ($SNX), Uniswap ($UNI), SushiSwap ($SUSHI) and Uma Project ($UMA).
The BNC Blue-Chip DeFi Index was launched in October 2020 as an institutional-grade index product that tracks the market performance of the eight largest assets in the DeFi classification. The constituent asset weightings are rebalanced every three months based on free float market capitalisation, capped at a maximum constituent weight of 25 per cent.
Issued on Balancer Protocol, the new DeFi ETP mimics the constitution and weights of the BNC Blue-Chip DeFi Index. It is rebalanced in alignment with the index, providing traders an opportunity to get non-synthetic exposure to the assets that make up the index, and/or to speculate or arbitrage between the price parity of the index-powered perpetual swaps [offered by third parties such as BTSE] and the spot market for the ETP.
“Digital asset investors and traders are seeking more advanced ways to gain exposure to popular, pre-vetted cryptocurrencies in the DeFi sector,” says Fran Strajnar, Founder of Techemy Capital and Brave New Coin. “BNC’s DeFi Index and ETP provides this, all with industry-leading security, transparency and speed.”
Along with Balancer, the DeFi ETP and future ETP’s will be traded on, or available through, a growing distribution base which includes Uniswap, several decentralised exchange aggregators, portfolio management tools, and crypto wallets. The BNC Blue-Chip DeFi Index is available as a perpetual swap with leverage on the centralised exchange BTSE and scheduled to go live on decentralised exchange Leverj.io as a perpetual swap later this month also.
“It’s very exciting to see Brave New Coin and Techemy Capital utilise the flexibility and security of the Balancer protocol to build Exchange Traded Portfolios,” says Jeremy Musighi, Head of Growth at Balancer Labs. “Amidst growing global interest in decentralised finance, the DeFi ETP is a permissionless mechanism for accessing a diversified basket of investments. The Balancer community looks forward to tracking the growth of this first-ever ETP and exploring future ETPs.”