WSBDApp has collaborated on a strategic partnership with automated portfolio manager Balancer Protocol to launch its novel exchange-traded portfolios (ETPs) on the Balancer V2 platform.
ETPs To Pull In Retail Investors Into DeFi
These decentralized ETPs will enable both the companies to further their goal of scaling decentralized finance (DeFi) by employing selected fiat-linked stablecoins, tokenized commodities, and crypto native assets to fight inflation. Furthermore, once the portfolio compilation has been determined, voted upon, and rebalanced by the WSBDApp community, it will be more accessible to institutional and crypto-native investors through increasing exposure. At the end of the day, the goal of ETPs is to bridge the gap between traditional investors and innovations in DeFi and allow them to diversify their portfolios.
According to the collaboration announcement,
“Like an ETF or index fund, Wsbdapp’s ETPs on Balancer create a carefully selected portfolio of tokens that are fully liquid, balanced to avoid inflation, and noncustodial.”
The announcement further elaborated that WSBDApp users will be able to tap into the Balancer Protocol and leverage the proper currency to buy in and receive a token representing their holdings.
WSBDApp - The DeFi Behind WallStreetBets
The recently launched blockchain-based trading platform, WSBDApp, has been created by the leaders behind the iconic WallStreetBets community and grassroots movement.
BTCVIX, the anonymous CEO of the WSBDApp platform, spoke on the collaboration,
“The Wallstreetbets community has something for everyone, and with democratic tools like ETPs, we’re showing the world how financial markets should really be managed. Balancer is providing our community the data they need to access and evaluate these portfolios, enabling really educated financial decisions.”
Automatic Token Pool Rebalancing On Balancer Protocol
Balancer V2 allows users to purchase and invest in a pool of tokens developed simultaneously. The investor will then receive a token representing their entire stake in the pool, which can hold up to 8 different assets. Thus, according to the creators, the Balancer V2 will reduce fees for the users of the WSBDApp users.
“Users will receive frequent updates about the status of their ETPs. Once the funds are held, users get access to any upside of the collection and can sell back their shares when ready.”
With Balancer V2, users wield more control, ensuring automatic rebalancing by changing the pool’s composition and trading digital assets as required. Additionally, the low gas fees of the Balancer pools and the in-built circuit-breaking technology preventing bad tokens from draining all the value also appeal to retail investors concerned about the volatility and high expenses of cryptocurrency.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
