Introducing PEAKDEFI Protocol
Tags: Decentralized Finance, Smart Contracts, Peakdefi, Defi, Blockchain

Watch our introduction video for a brief overview

PEAKDEFI is a decentralized, performance-based asset management fund, created to connect investors and asset managers for capital growth.

“The vision of PEAKDEFI is to enable everybody on the planet to grow their wealth, no matter what position they are in at the moment. We want to provide a decentralized investment gateway that is easy to use and accessible for millions of people to shape their future. That’s the mission at PEAKDEFI.”

What is the PEAKDEFI Fund?

The Idea of a mutual fund is basically pooling your money with the money of other investors and investing it in a portfolio of different assets. The PEAKDEFI fund is a decentralized fund, programmed as a smart contract on the Ethereum blockchain, managed by different Managers in a decentralized, permissionless and smart way to get the best outcome for everybody involved. Investors can invest in the contract and buy a share of the PEAKDEFI fund, whereas managers can participate in on-chain trading with the fund’s capital.

Great Opportunity for Investors and Asset Managers

PEAKDEFI was created to disrupt the whole investment environment. While current solutions have a lot of flaws, especially for small investors and asset managers, PEAKDEFI paves a completely new way by creating one global fund for everybody, transparent to anybody, governed by all together, to reach the PEAK of the Markets.

Security Audit of the PEAKDEFI Smart Contract

Security has the highest priority at PEAKDEFI. Our system was reviewed and audited by Quantstamp, one of the best smart contract security companies, to ensure the security of the PEAKDEFI fund and the staking process. You can verify this information by visiting Quantstamps certificate database and search for “PEAKDEFI”. Or you can just click here to see the full audit report.

Benefits for Investors

Investing in the PEAKDEFI fund is as easy as counting 1,2,3. Our PEAKDEFI platform is programmed on a Smart Contract, which means that each investor can simply connect to the platform with his own ETH wallet and invest with Ethereum or 70+ other ERC20 tokens.

You are in control of your capital

All user deposits are locked in smart contracts without any third party having direct access to those funds. PEAKDEFI is non-custodial and permissionless and is never taking control of any assets. It can be used directly from a wallet (i.e. MetaMask / WalletConnect) that only you control.

Autonomous Optimization to achieve the best results

You don’t have to worry about choosing THE right manager, who will manage your capital.The Distribution of the managed PEAKDEFI fund adjusts automatically between the best asset managers through smart contracts to achieve optimal results. You just have to invest in the PEAKDEFI fund and you are ready to make profits.

Short Trading Cycles to guarantee a flexible Capital Management

In today’s world, flexibility is one of the most valuable treasures. To guarantee the managers as well as the investors more flexibility there is a fixed management period of just 57 days, followed by a 3 day transition phase, where investors can sell their PEAKDEFI Shares again. We refer to this whole period as 60 day cycles, where managers can make proper trading decisions while investors can access their funds

In addition, investors have the opportunity to generate additional income through referrals and staking.

When profits are generated, they are divided as follows:

If the fund was profitable in a cycle the profits will be shared automatically between investors, fund managers and affiliates in the following way:

65% of the Profits will be distributed to the investors

15% of the Profits will be distributed to the fund managers

20% of the Profits will be distributed to the affiliates

Opportunity for fund managers

Instead of managing an own fund the idea at PEAKDEFI is to manage one global fund with many other managers together in a decentralized and permissionless way. This is a completely new and disruptive way for asset managing that also implies different managing approaches compared to traditional hedge funds and raises a couple of questions:

How can managers manage the capital of investors in a decentralized environment?

How does the distribution of the assets under management (AUM) work?

How does the handling of good and bad managers work?

How can inactive managers be treated, who block capital to grow?

Decentralized environment

Like investors, the managers connect their Ethereum-wallet with the platform to interact with the smart contract. Managers can open and close trades, even margin trades, all in a decentralized way. To provide all these solutions the PEAKDEFI platform interacts automatically with different decentralized protocols like 1inch, Kybernetwork, Uniswap and Compound Finance.

Automated AUM Distribution via Reputation Token

To ensure that managers have a fair share of the AUM (Assets under Management), so-called reputation tokens are used. A fixed sum of 100 reputation token must be acquired by every manager when he or she enters the platform and they reflect a certain share of the AUM. How much AUM a Reputation Token represents changes due to various factors such as the number of active traders, the amount of investments made to the fund and other factors. If more Managers enter the fund it has to be shared between more Managers and therefore every Manager get’s a smaller piece to manage. But more traders usually mean less volatility and therefore more stability for the fund.

The Amount of Reputation Token is directly linked to the manager’s personal performance. While every Manager starts with a fixed sum of 100 Reputation Token, over time the number of reputation tokens and therefore the capital for the respective manager can increase or decrease, based on the trading decisions of the Manager. Reputation Token can only be purchased once, at the beginning. They can’t be sold nor can a Manager purchase more.

Managers have to stake their reputation tokens in order to set trades, which calculates a risk threshold level for this specific trader. The risk threshold mechanism is also monitoring how active the managers are and inactive trader will lose their reputation tokens and there shares, if they don´t trade. Fund managers, like investors, are bound to 60-day cycles and can trade for 57 days. There is a trading stop during the 3-day intermediate phase where investors can sell their funds.

Benefits for fund Managers

There are several advantages to being a manager at our PEAKDEFI fund. One of the most attractive advantages is of course the profit sharing. Each manager receives approximately 15% of the total profit of the PEAKDEFI fund. This depends on the manager’s performance and the activity he has shown during the cycle of trading. Another advantage is that you can start immediately as an asset manager by buying reputation token and get a piece of the fund to manage without consulting different clients first. That’s the beauty of a decentralized protocol, there are no boundaries. Of course, there are mechanisms to avoid losses for the fund. Therefore bad traders lose their reputation (token) fast and will have consequently less AUMs. But on the other hand, good traders get automatically more reputation token (and therefore AUM), which means more income and no search for clients anymore.