Low-risk Crypto Index - LCI
Objective & Approach
ThirdFi Low-risk Crypto Index is a tokenized crypto index fund on Binance Smart Chain Network, which tracks major stablecoins, such as USDC, USDT, and BUSD. This strategy aims to provide stable profit with stablecoins and auto-compounding CAKE rewards on top of it as extra profit.
ThirdFi provides easy and seamless investment vehicles with major crypto assets by removing complicated processes and entry barriers to Decentralized Finance. This strategy has low risk but can provide a stable profit to your portfolio.
Asset Allocation
USDT
Tether
40%
USDC
USD Coin
40%
BUSD
Binance USD
20%
Auto-compound Reward
CAKE - PancakeSwap
Risks
Low
Investing in the crypto asset market offers massive potential upside, but the historic data shows that there is a fair amount of volatility compared to traditional investment assets. A standard risk when it comes to providing liquidity on decentralized exchanges in any DeFi investment is impermanent loss. Impermanent loss occurs when a token price changes after the investor deposits assets in a liquidity pool. DeFi investment using stablecoins may significantly reduce the risk, since stablecoins are linked to the price of fiat currency, their value does not fluctuate as much.
Time Frame
Long-term
This fund aims to capture expected gains in the broader crypto market with relatively lower risk, by diversifying the portfolio. By automatically compounding the liquidity pool rewards regularly, the fund constantly mitigates the loss from purely holding single assets, while getting benefits from long-term market growth.
Fees
20% of the profit.