Omipools Product
Portfolio of PDN Strategies to Diversify IL
Last updated
Portfolio of PDN Strategies to Diversify IL
Last updated
In TradFi portfolio approach to investmens is a : It's known that financtial instruments can be grouped into portfolios, so portfolio as a whole performs better than any of its constituents. Performance is usually measured by the .
The main takeaway from the portfolio theory is that part of risk can be reduced by diversification: to achieve this, one should try to include uncorrelated assets into portfolio.
Cetra's PDN strategies are exposed to tokens relative prices: that from the first sight seem to be highly correlated, but ETH/SNX price in fact may not correlate at all with the MATIC/CRV price and both of them may not correlate with BTC/USDC price. And efficiency of such approach has been already pre-approved by team's past researches.
We're really looking forward to introduce our users a never-seen in DeFi portfolio approach to Impermanent Loss and Trading fees exposure with the use of Modern Portfolio Theory. As soon as we deploy sufficient amount of pairs to invest, we will select those of them, which make being DeFi market maker even more safe and include it into an OmniPool.
