Introduction to Exposure
Ten trillion dollars is currently invested globally in exchange-traded funds. ETFs have become a standard investment instrument for retail and institutional investors. ETFs allow investors to create a balanced and diverse investment portfolio.
CoinMarketCap has reported that the digital asset total market capitalization has gained over $1.9T over the past five years. Decentralized Finance (DeFi), a sector of digital assets, has created a new asset class that can bring instant settlement, transparency, and asset yield opportunities. Products already available to users include digital asset futures contracts, options, and decentralized exchanges.
Exposure is a decentralized framework that expands on the ERC20 standard to batch underlying tokens to create tokenized pro-rata shares. The ERC20 standard allows Exposure baskets to be easily accessible on all major wallets for trading and transfers.
Navigating the vast amount of information in the digital asset industryis overwhelming as users can spend countless days researching information to find their next investment. Exposure can offer simplified education on the basket's underlying tokens and risk metrics. Not only will users have an easier time picking their investments, but they can also shift their investment risk and timeframe to appropriate levels. Investing through a digital asset basket allows the usert o match sector market performance instead of underperforming through active trading.
Exposure creates a new investment instrument to enable institutions to build innovative ways to attract capital and deploy liquidity. Institutions have been adding more ETFs to their portfolios due to their flexibility, liquidity, analytics, and order flows. This same trend could carry over to the decentralized market. Market makers can seize opportunities arbitraging the underlying assets that have mispricings between centralized and decentralized exchanges.
Last modified 24d ago
Copy link