OASIS Ventures, a decentralized cryptocurrency fund experiment driven by protocols, unfolds its design mechanisms, traction, and development foundation in the following. The fund aims to provide an opportunity for ordinary individuals to participate in the cryptocurrency market and discover and support promising crypto enterprises, thereby achieving shared dividends from the development of the cryptocurrency space.
Differing from traditional funds, OASIS Ventures ensures the security of funds through protocol-controlled measures, eliminating the risks associated with human factors that centralized funds may face. Both the risk capital and safe capital of the fund undergo risk control isolation, ensuring the safety of investors’ funds.
Birth of the Fund
The origin of the fund can be traced back to the financial industry’s history of creating new financial instruments to adapt to the constantly evolving real economy. In the late 19th century, the Industrial Revolution in the United Kingdom propelled rapid productivity growth, leading people to desire overseas investments. Faced with inconvenient international trade and communication conditions at the time, investors united to create the precursor to investment trusts. In 1868, the first fund in history, the Overseas and Colonial Government Trust Fund, was established in the UK, marking the rise of funds on the historical stage.
What is a Cryptocurrency Fund?
A cryptocurrency fund typically refers to an investment fund focused on investing in cryptocurrency and blockchain projects. Cryptocurrency funds profit by purchasing, holding, and trading digital assets, employing various strategies such as long-term investment, short-term trading, arbitrage, and participating in initial token offerings. Operating more flexibly than traditional funds, cryptocurrency funds allow investors to indirectly participate in the digital asset market by purchasing fund shares, reducing risks associated with managing cryptocurrencies directly.
Advantages of Cryptocurrency Funds Compared to Traditional Funds
Cryptocurrency funds have six significant advantages compared to traditional funds, especially after the approval of Bitcoin Exchange Traded Funds (BTC ETF):
Convenience in obtaining exposure to digital assets: Investors can easily gain exposure to digital assets through cryptocurrency funds without the need to directly purchase and manage cryptocurrencies. Cryptocurrency funds offer a simpler way to participate in the digital asset market compared to traditional funds.
Higher liquidity: Cryptocurrency funds can be bought and sold on exchanges, providing higher liquidity, making it easier for investors to enter and exit the market. In contrast, some traditional funds may face restrictions on trading and may require a longer settlement period.
Around-the-clock market: Cryptocurrency markets operate globally 24/7, while traditional financial markets typically open during specific hours on business days. This allows cryptocurrency fund investors to trade at any time, unrestricted by traditional market hours.
Diversified investment: Through cryptocurrency funds, investors can easily achieve diversified investments in multiple crypto assets, reducing risks. While traditional funds also provide opportunities for diversified investments, cryptocurrency funds can more flexibly adapt to rapid changes in the digital asset market.
Market transparency: The characteristics of blockchain technology enable cryptocurrency funds to provide a higher level of market transparency. Investors can track fund holdings and transaction records, ensuring transparent and compliant fund operations.
Era of development dividends: The approval of BTC ETF signifies that traditional funds will enter the cryptocurrency market more conveniently. This also indicates mainstream market recognition for the cryptocurrency market, bringing more capital inflows and additional development dividends.
Areas for Improvement in Cryptocurrency Funds
However, the world’s largest cryptocurrency fund financial institution, Grayscale Fund, still faces areas that urgently need improvement. The trust fund structure it adopts may lead to premium or discount issues in fund shares during market fluctuations, directly exposing investors to significant risks associated with cryptocurrency market volatility. In the 2021 Bitcoin bull market, many investors who purchased GBTC assets are still in a loss position, highlighting the deficiencies in the product structure.
Addressing Investment Risks in Cryptocurrency Funds
To address investment risks in cryptocurrency funds, OASIS Ventures proposes a more comprehensive solution. Through decentralized protocols, the fund products undergo fund isolation, with different products having varying return rates and maximum drawdown levels. Users can choose products suitable for them based on their risk tolerance. Using sharding wallet technology, the protocol automatically generates a sharding wallet for each user, achieving automatic division of investment funds, including “safe margin” and “risk capital,” maximizing the security of user funds.
OASIS Ventures’ decentralized cryptocurrency fund experiment not only provides a safer way for ordinary investors to participate but also offers new perspectives for addressing the traditional fund blow-up problem. The success of this experiment is expected to drive innovation and development in the cryptocurrency fund field.
OASIS Ventures: The Innovative Path of Autonomous Operation
In enhancing the traction and achieving autonomous operation for cryptocurrency funds, OASIS Ventures adopts a unique and innovative approach. The company establishes the OASIS Development Foundation and allocates 30% of investment returns to the foundation through protocols, ensuring sufficient funds to support the development of OASIS Ventures. This strategy provides daily lucrative dividend returns for members joining the OASIS Ventures Foundation.
OASIS Ventures actively propels its operations by establishing four foundation organizations. These foundations include academic institutions, market strategy organizations, strategic advisory teams, and a global influence network.
Academic institutions are responsible for OASIS Ventures’ education and academic training, as well as handling global promotion, education, and conference activities.
Market strategy organizations are tasked with formulating OASIS Ventures’ market development strategies and business operation plans.
The strategic advisory team, comprising the world’s top 10 teams, establishes connections with industry experts, crypto research institutions, and other venture capital companies, expanding OASIS Ventures’ business network.
The global influence network is created through the OASIS Ventures protocol, automatically selecting the world’s top 100 influential fund managers. Every 30 days, the protocol algorithm updates the selections, and fund managers becoming members of the influence network receive 20% of OASIS Ventures’ daily fund dividends. This incentive plan will attract fund managers globally to join the OASIS Development Foundation.
Impact Protocol – OASIS’s Innovative Autonomous Operation Model
To maintain team vitality, OASIS adopts an innovative mechanism called the Impact Protocol. This protocol, driven by an impact algorithm, determines who the true core managers of OASIS are and who qualifies to join the OASIS Development Foundation. Considering variables such as personal investment, the number of direct promotions, the total investment amount of direct promoters, and the total team investment amount, the impact algorithm ensures that OASIS’s true core managers can overcome obstacles and be elevated to core members of the foundation, enjoying lucrative dividends.
This innovative autonomous operation model not only propels the development of OASIS Ventures itself but also provides a more attractive investment platform for global fund managers. This forward-thinking strategy will have profound implications for the future of the cryptocurrency fund sector.
The ability of OASIS Ventures to offer such high investment returns while controlling risks may seem incredible. However, a deeper understanding of OASIS’s investment framework may unlock this mystery.
Firstly, OASIS’s protocol automatically isolates users’ funds, dividing them into safe funds and risk investment funds. Safe funds are returned to investors in advance through the profitability of different products and promotional rewards. This not only eliminates the traditional fund’s lock-in period of 2-3 years but also increases the stickiness between OASIS and market investors through daily returns, enhancing the utilization of investors’ funds.
For risk investment funds, OASIS entrusts its venture department with portfolio investment, focusing on four