The Utility Basket contains digital assets that provide tools and infrastructure for the crypto ecosystem. Among some of the use cases for these assets are: network scalability, data management, developer tools, payments, and security. The focus for this basket is to hold digital assets that provide necessary utility for the crypto ecosystem to function efficiently and effectively.
November 1, 2022
Assets providing tools and infrastructure for the crypto ecosystem
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.
LINK
30%
CRV
30%
MKR
30%
FIL
10%
Chainlink is a blockchain protocol operating a decentralized oracle network (DON) that seeks to bridge the gap between on-chain and off-chain systems. The project accomplishes this by creating oracles that connect to companies or blockchains via API and deliver real-time price data.
Chainlink (LINK) is used as a payment token to pay node operators for providing oracle services. It’s also used as a work token to be staked by node operators as collateral to provide oracle services. Initial supply is capped at 1 billion LINK tokens, with 35% going to investors, 35% reserved as incentives for network participants, and 30% allocated to LINK’s parent company.
Curve is a decentralized exchange for trading cryptocurrency assets, similar to Uniswap. The key difference is that on Uniswap, you can swap any ERC-20 token (as long as there’s liquidity), whereas Curve is specifically for trading stablecoins on Ethereum. Curve enables fast, efficient, and low-friction stablecoin swaps.
Curve (CRV) is a native governance token. The total supply is capped at 3.03 billion CRV tokens. During the initial token distribution, one million CRV tokens were released per day until 1.3 billion CRV tokens in total were in circulation. After that the distribution schedule is reduced by 2.25x per year with all tokens being fully distributed in 2320.
MakerDAO is an innovative open financial system that mints Dai stablecoins backed by crypto collateral. MakerDAO is a decentralized bank of the future and the entire system runs on the Ethereum blockchain, is decentralized, and is taken care of by smart contracts.
MakerDAO (MKR) is a governance token and also used to purchase excess DAI stablecoins from collateral or surplus auctions. Once the auctions are concluded, the protocol burns the MKR earned. There were one million MKR tokens at launch. MKR is burned or increased in supply depending on how much debt is on the platform (loans) or how much DAI tokens are in circulation.
Filecoin is an open-source cloud storage marketplace, protocol, and incentive layer built on a decentralized storage network. FIL allows anyone to buy or sell storage space on the network, creating a global data storage system that is safe, cost-effective, and scalable.
Filecoin (FIL) is used to participate and transact in the Filecoin network. It is capped at two billion FIL and 70% of the total supply is allocated to Filecoin miners. FIL will be released over time to reward providers of data storage, maintain the blockchain, distribute data, and run applications.
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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