New Decentralized Finance (Defi) -Protocolneutrl aims to bring a hedge fund trade – once limited to sophisticated investors – to the masses in the form of a crypto token.
The protocol launches its NUSD “Synthetic Dollar” token, designed to generate returns by the arbitrage set up altcoin offerings in markets over-the-counter (OTC), the team Coindesk said in an exclusive interview.
Neutral also raised $ 5 million in seed financing led by Digital Asset Private Marketplace Stix and Venture Firm Accerence. Together with Amber Group, SCB Limited, Figment Capital and NASCENT, they joined a number of Crypto Angel -Investors, including Ethena founder Guy Young and Derivatives Trader Joshua Lim from Arbelos Markets, recently acquired by Falconx.
Tokenized hedge fund strategy
Neutrl is the latest participant in the fast -growing list of protocols that offer hedge -like investment strategies wrapped in a symbol with a stable price, often called “Synthetic Dollar.” $ 6 billion defi -protocol ethena was the tip of the trend and yielded to token holders via Holding Spot Cryptos and Shorting Perpetual Futures, Agriculture of the Financing Rate.
Read more: Resolv Labs Raising $ 10 MIO
Neutrl’s structure is built around buying locked altcoins for discounts in private markets and then uncovering exposure with eternal futures. For example, a trader may acquire Solana’s sun or Avalanche’s Avax with a 20% discount from a foundation and at the same time open a short position for the token. The return comes from the price difference, not market movement.
This is a popular investment strategy for hedge fund that produces high double -digit yields for sophisticated investors who do not want to take directional bets on crypto prices, Neutrl Behrin Naidoo explained in an interview.
But instead of managing these trades manually, neutral users can hold a single token – which does not – it encapsulates the strategy and opens access to a wider set of investors, he said.
With a flood of Altcoin Unlocks over the next few years, Neutrals estimate that there is a $ 10 billion market for locked tokens. This provides an attractive yield option for investors, especially now that crypto yields in decentralized financing compressed to perennial low, Naidoo said.
Neutrl is targeted to grow to $ 2 billion in assets in the two years, he added.
