Decentralized finance (DeFi) is the movement that leverages decentralized networks to transform old financial products and systems into trustless and transparent protocols that ran without intermediaries. The DeFi markets comprise stablecoins, Insurance protocols, derivative markets, community savings pools, margin trading platforms, prediction markets, staking as a service platform (SaaS), Lending and borrowing protocols, Decentralised Autonomous Organisations (DAOs), Asset Management tools among others.
The ability to have access to financial products such as taking out cheap loans, lending money, taking out leverage positions, pooling together capital, etc. anywhere on the planet with just a phone and internet access is going to disrupt the current financial markets. Over the past two years, during the most depressing bear market the digital-asset industry has faced yet, crypto startups have been building what could go on to be the future of financial markets. This hard work has yielded results and over the past six months, several startups have released mainnets and products.
This has resulted in the skyrocketing of the market capitulation of the DeFi space. It took the entire DeFi space two years to reach a capitalization of $1billion, 3 months later, the market reached $2billion, then the unthinkable happened. In two weeks, the market reached $3billion.
It is in euphoric times like these in the market that investors are advised to remain calm, move slowly, and conduct thorough research on products and the teams building these products. As market watchers and investors, we know we’d certainly have another mega-bull market, one that will have 50–100X the magnitude of what we experienced in 2017, to have maximum returns, projects, and teams will have to undergo a lot of due diligence and vigilance.
It is with these in mind that we at Sats Capital are happy to announce that we invested in Akropolis. The mission of giving people the tools to grow and save investments to safeguard their future safely without dependence on a geographical location, a central counter-party, or falling prey to financial practices of multiple intermediaries.
The Akropolis team has built the AkropolisOS, a modular framework for creating Decentralised Autonomous Organisations (DAOs) with incentives, automated liquidity provision enabled by the bonding curve mechanism and a programmatic liquidity and treasury management system. This will allow everyone to start and run DAOs in minutes while maintaining full control over it. This means communities, friends, families, etc. worldwide are now able to invest together and have absolute control over the governance process of their funds.
The team released the first product Sparta in July, which permits the taking of cheap under-collateralized loans with borrowers providing only 50% of collateral. Sparta also creates an avenue to passively generate yield through an integrated yield rebalancing mechanism to get maximum available APR from different DeFi projects. Weeks after the release of Sparta, the native token $AKRO had an unprecedented 400% gain. The $AKRO token is used for participation in the AkroChain consensus as a validator and staking to maintain and protect the on-chain security of the AkroChain.
The team is currently developing the Delphi protocol which will allow pools to execute an automatic dollar-cost averaging strategy (DCA) into Bitcoin and Ethereum. We believe the Delphi protocol will provide more diversification options to long term investors and also grant investors the ability to participate in different yield harvesting (liquidity mining) possibilities.
To conclude, we believe that markets are a reflection of the participants participating in them, investors tend to lose more in a bull market than a bear market and bull markets are way more dangerous than bear markets. The digital-asset market is very volatile and thus very risky.
We will advise potential investors to take extreme caution and perform all the necessary due diligence before making any investment in the digital asset space.
Disclaimer:
Investors must have the financial ability, sophistication and experience to bear the risk of an investment. This article is intended for those with an in-depth understanding of the high-risk nature of investments. This article is not to be considered as investment advice and tax advice. Talk to your accountant and your investment advisor. Do your research before making any investment decision.
