Community-driven Traded Portfolios
Sometimes it is more effective to invest in a basket of ideas rather than a single stock. CTD’s provide a fun way to allow key-opinion-leaders to jointly develop a portfolio in which investors can participate in.
For this type of mechanic to work, several principles need to be upheld.
Representative | The CETD needs to be able to closely follow the index of the underlying assets and represent it adequately |
Transparency | All calculations, smart contracts, and design needs to be visible and openly communicate to whomever wants to invest |
Time | All changes to the underlying portfolio need to be reflected in a timely manner in line with the update rules of the index. |
Robust | Peer-reviewed analysis of the smart contracts, data pipelines, and architecture need to ensure a robust operations that is resistant to disruptions and manipulations. |
Last modified 1yr ago