A New Zealand company has announced the launch of a kind of ETF (Exchange-traded investment fund), a mini-ETF, that will allow you to earn interest on a decentralized creditor. In other words, TechemyCapital’s three new investment portfolios are based on so-called “yield farming”. This, in turn, uses leverage to increase investor exposure to assets and thereby increase profit chances.
“These early products can be seen as a ‘mini-ETF’, for now,” as explained by Fran Strajnar, CEO of TechemyCapital, to Coindesk.
Among Techemy’s promises for the product are 24-hour investment performance reports, the ability to make withdrawals without paying for it, besides full transparency in Ethereum-based assets. This investment model fits into the so-called DeFi (or decentralized finance). In this modality, technologies such as blockchain, smart contracts and stablecoins are used, for example, to decentralize financial products.
Technology behind mini-ETF investment brews success
In addition, yield farming has been very successful among investors. According to Coindesk, the demand for this type of investment in the Compound platform was so high that the company ended up changing the way it distributes the asset.
In a statement, Strajnar also recalled that DeFi is pointed out as an element that can change the finance scenario which was never seen since 2014. He added that this has become real thanks to the maturity process of the industry’s infrastructure, which was enough to enable a global scale of innovative investments.
“Money and value are now intertwined in the fabric of the internet. Liquidity is plentiful, risk is manageable. This is a radical change and creates an environment that is attractive to many types of investors”, concluded the executive.