The DeFi Basket invests in digital assets that are primarily focused on decentralized financial applications. These assets provide traditional financial products without the use of an intermediary. DeFi projects can include exchanges, lending, derivatives, savings accounts, and many more.
November 1, 2022
Three governance tokens focused on decentralized finance (DeFi)
Adjusted the first day of each calendar quarter
Portfolio rebalancing will be performed at the end of the calendar quarter to bring allocations back to specified percentages. In the interim portfolio allocations will be subject to market volatility due to price movements.
Medium Risk*
*This risk level is only factoring in the risk of the digital assets.
AAVE
40%
COMP
40%
UNI
20%
Aave is a DeFi protocol offering depositors and borrowers a platform for decentralized crypto loans with high liquidity. Aave is open source, meaning anyone can see, use, implement, or modify the original source code. It is also a non-custodial protocol, which means the Aave platform itself never holds or otherwise possesses your cryptocurrency assets. Lastly, it is a liquidity protocol, which means that the platform enables both depositors and borrowers to tap into a massive global network of liquid assets.
Aave (AAVE) is a governance token with the supply capped at 16 million tokens. 3 million were allocated to the protocol’s reserves. Prior to 2020, AAVE was named LEND, but then began to transition in October of 2020. As part of the transition, 100 LEND tokens were swapped for 1 AAVE.
Compound is an autonomous, algorithmic interest rate protocol built and used by developers within various financial applications. COMP leverages multiple crypto assets to enable crypto lending and borrowing without a bank or other financial institution. It allows users to deposit cryptocurrency into interest-earning lending pools for access by borrowers.
Compound (COMP) is a governance token, where the supply is capped at 10 million tokens. 42% of the supply will be distributed to users of the platform linearly starting in June 2020 and spanning four years until June 2024.
Uniswap is a decentralized cryptocurrency exchange powered by the Ethereum blockchain. It consists of a network of smart contracts which connect people and institutions providing tokens to anyone trading tokens with Uniswap liquidity pools.
Uniswap (UNI) is yet another governance token. The supply is set at 1 billion tokens distributed over a four year period. After the four year period, there will be a perpetual inflation rate of 2% per year.
This Basket contains the two most recognized cryptocurrencies, Bitcoin and Ethereum.
The Layer1 Basket focuses on cryptocurrencies that operate their own blockchain network.
The above material and content should not be considered to be a recommendation to invest in a basket or an individual digital asset. Investing in digital assets or cryptocurrency (collectively “digital assets”) is highly speculative and volatile, and digital assets are only suitable for investors who are willing to bear the risk of loss and experience sharp drawdowns.
Shrimpy Advisory is an investment adviser registered with the US Securities and Exchange Commission. Registration as an investment adviser does not imply a particular level of skill or training. Shrimpy Advisory exclusively provides investment advisory services related to investing in digital assets.
Shrimpy Advisory is not a broker-dealer, exchange, custodian, or wallet provider, and is not intended for frequent trading activity. The articles and client support materials available are educational only and not investment or tax advice.
Who Provides What Service?
Investment Advice: Advisory services for digital assets are provided by Shrimpy Advisory, an SEC-registered investment adviser.
Digital Asset Trading Services & Custody: Digital asset trading services and custody are provided by Gemini Trust Company, LLC. For further details regarding the custody of assets, including cash, held at Gemini Trust Company, please see your Gemini user agreement.
Risk: Investing involves risk and there is the potential of losing money when you invest in securities and digital assets. Past performance does not guarantee future results and the likelihood of investment outcomes are hypothetical in nature. Any past performance in the above material of digital assets do not represent the performance of a Shrimpy Advisory account and does not reflect the deduction of the Shrimpy Advisory fee. Regarding any instance of extracted performance, Shrimpy Advisory offers to provide promptly the performance of the total portfolio.
Investments in digital assets are: Not FDIC or SIPC Insured • Not Bank Guaranteed • May Lose Value
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