Introducing the World’s First DeFi Metaverse Index Fund with Yield

DAOventures is launching the world’s first Metaverse Yield Farming DeFi Fund, aka Metaverse Farmer, which provides access to a wide range of metaverse crypto assets.

Introduction

Metaverse and NFT are experiencing massive growth in value. The metaverse allows users to create and experience virtual worlds with other people from around the world, which can lead to engaging in social activities, playing games, earning money, and making friends.

The DeFi space has grown 88x in the last year, while NFTs have grown from $13 million in sales last year to $2.5 billion in the first half of this year alone.

Now you see what we’re talking about!

The Metaverse Farmer strategy is predominantly held in ETH, with the rest diversified among NFT gaming leaders such as AXS, SLP, ILV, GHST, REVV, and MVI. In addition to providing diversified exposure to the metaverse industry, the fund takes advantage of yield farming, by using funds to provide liquidity and receive fees in return.

Investing Methodology

This innovative and futuristic strategy allocates user assets into metaverse ecosystems. Portfolio components are chosen based on criteria such as market cap, popularity, and development.

The majority of the portfolio lies in ETH, which is paired up with selected coins for additional yield farming rewards, where eligible.

A quarter of the portfolio is allocated to Index Coop’s Metaverse Index, a shifting basket of metaverse related governance and utility tokens. The rest of the portfolio is allocated to 5 different mainstream NFT coins.

Allocations

37.5% ETH

10.0% AXS — Axie Infinity

Axie Infinity is a blockchain-based digital nation with an astonishing 250,000+ daily active players.

7.5% SLP — Smooth Love Potion

The SLP is basically a token that captures the value created by a player in Axie Infinity, without a doubt the second-to-none token in this strategy’s allocation.

10.0% ILV — Illuvium

Illuvium, run by the ILV token, already has a market capitalization of around $400 million, as of writing

5.0% GHST — Aavegotchi

Data from Cointelegraph Markets Pro shows that since reaching a low of $0.896 in June, the price of GHST has rallied 202% peaking a new record high at $2.74 in August. Aavegotchi

5.0% REVV — Revv Racing

REVV is the main utility token and in-game currency used in multiple motorsports games released by Animoca Brands.

25% MVI — Metaverse Index

MVI is a metaverse index coin launched by Indexcoop, to capture the trend of entertainment, sports, and business in the metaverse.

What the portfolio really looks like, taking into account trading pairs:

  • 20% AXS-ETH (yield farming on Sushi)
  • 15% SLP-ETH (yield farming on Sushi)
  • 20% ILV-ETH (yield farming on Sushi, staked on Illuvium)
  • 10% GHST-ETH
  • 10% REVV-ETH
  • 25% MVI

Growth

Incentives earned from yield farming these pairs would automatically be compounded by our smart contracts. The portfolio will be rebalanced to reset the strategy back to its standard allocations and weights laid out above so that you will always maintain a balanced allocation!

Risks

Illuvium allocations in this portfolio come in the form of ILV-ETH, which is a special liquidity pair that is staked for up to a year for bonus yields. Users who withdraw their money without waiting out this vesting period will have to sacrifice that portion of the portfolio. That ILV-ETH will then be attributed to the remaining users who qualify.

Impermanent loss is a standard risk when it comes to providing liquidity on decentralized exchanges.

Fees

Besides the standard 0.5%-1% deposit fees and 20% profit sharing fees (see here for more details), there is a 10% fee on the yield farmed which is used to pay the gas fees associated with harvesting rewards and depositing LPs.

About DAOventures

DAOventures is a multi-chain DeFi investing platform for fund managers and crypto investors. Its mission is to make DeFi simpler, more accessible, and inclusive. DAOventures is a team of engineers, researchers, crypto-investors, DeFi & NFT adopters, and problem solvers who want to build and accelerate the future of money, together.

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Multi-chain DeFi investing platform for fund managers and crypto investors.