Techemy Capital, an Auckland based financial services provider and funds management company have launched a suite of DeFi-based investable products to help investors tap into the open finance ecosystem.
DeFi, or Decentralized Finance, is one of the fastest-growing sectors in the blockchain industry. DeFi refers to the interconnected crypto assets, smart contracts, protocols, and decentralized applications built on the Ethereum (ETH) blockchain. Run by programmable code, DeFi reduces friction and capital inefficiency and offers the possibility of higher yields.
“We’ve been talking about DeFi being a game-changer since 2014,” says Fran Strajnar, Executive Chairman of Techemy Capital. “DeFi is a recent term that’s come about due to the industry infrastructure becoming mature enough for innovative investable products to scale globally. Money and value are now woven into the fabric of the internet. Liquidity is abundant and risk is manageable. This is a radical shift that has created an environment that is appealing to many investor classes.”
Hosted on the TokenSets automated asset management platform, Techemy’s new offering consists of two actively managed investment portfolios that allow investors to gain exposure to BTC and ETH price action. Investors are now able to take advantage of the crypto market’s price moves without having to trade themselves - and because Techemy’s new products are non-custodial - without having to release control of their crypto assets to a third party.
Techemy Capital’s BTC and ETH portfolios are actively traded using strategies designed to generate capital gains. Trades are executed by Techemy Capital’s professional in-house trading team, led by Rob Brewis and Josh Olszewicz.
A third portfolio that Techemy will launch soon on TokenSets is a passive yield portfolio based on the yield-bearing cDAI/cUSDC stablecoin pair. This portfolio protects against price volatility and offers other benefits including the ability to earn interest through the Compound Finance network.
Strajnar says this portfolio will launch shortly after the BTC and ETH portfolios, with the ‘yield farming’ functionality available later this year.
“TokenSets have built a robust suite of asset management tools and liquidity infrastructure as the basis for ‘Trader Sets’,” he says. “We are launching with two sets actively managed by our in-house traders to provide investors with exposure to BTC and ETH. We channel our proprietary trading experience to offer better-than-hodling performance. The third portfolio which launches soon will be passively-managed and is shielded from price volatility by having cDAI-cUSDC as the underlying assets. This is the first of its kind portfolio on the TokenSets platform. We think it will be appealing to certain investor profiles as it provides other benefits such as earning lending interest through Compound.”
Techemy’s new portfolio products are aimed at investors already familiar with digital assets and those entering the market for the first time. While the former can interact with the new portfolios with ease due to the seamless user experience, for users needing additional support Techemy offers personalized services - from custody to OTC and wallet management.
Both groups represent crypto investors who wish to earn a return on their assets by gaining exposure to professional trading strategies without having to make trading decisions themselves, a skill that can take years to learn.
Rob Brewis, Head of Trading at Techemy Capital, says that with these new products, Techemy clients don’t need to trade to capture a market-beating return. “Buy and hold strategies were great in the early years, but many investors are not making acceptable returns without actively managing exposure,” he says. “The TokenSets platform allows investors to participate in trading strategies managed by professionals with a proven track record, or hold neutral positions in stable tokens which attract yields based on current APRs at the time. All trades are public and self-auditable on the Ethereum network.”
The reason that the trades are public is due to Set Protocol’s innovative new TokenSets asset management infrastructure and non-custodial solution. Founded in 2018, Set Protocol was launched on the Ethereum mainnet in 2019 by Set, the company building Set Protocol and TokenSets.
Techemy clients can now put their digital assets to work, and leverage the strategies of Techemy traders, with just a few clicks, and without giving up control of their private keys. The TokenSets user experience makes it possible for users to buy Techemy’s BTC and ETH portfolios via a simple purchase from a crypto wallet.
All portfolios are self-custodial. When an investor chooses to participate, their assets are deposited and locked in a smart contract, and a tokenized certificate of deposit is sent back to the sender's wallet address. Investors remain in control of their assets and are able to withdraw and redeem at any time.
"TokenSets is the perfect platform for Techemy to bring sophisticated strategies to a broader audience beyond DeFi, says Felix Feng, Founder and CEO of TokenSets, “and this partnership sends a strong signal to the market that DeFi is rapidly maturing. TokenSets offers Techemy highly reliable infrastructure to serve their needs so that they can expand their market offerings with confidence.”
Strajnar says the new portfolio products remove much of the friction typically found in investment products, with no minimum deposit or lockups, 24/7 performance reporting, free withdrawals, and full transparency on the Ethereum blockchain. “Investors will get access to a product that is 100% liquid and instantly redeemable,” he says. “This represents better value than sitting on idle capital as you can gain exposure to potential 4-12% annual returns in income or 30% in capital gains, all while keeping control of your private keys.”
Each Techemy portfolio is enabled with programmatic rebalancing. Investors are also offered a basic hedging tool in the form of a purchasable cover against smart contract failure, serviced by Nexus Mutual.