This tier 1 crypto exchange platform has introduced an investment managing project that brings three types of investment vehicles, staking, yield farming, and quantitative trading in one solution, and enables investors to deposit their capital and is backed by real assets.
With blockchain technology we have financial services breaking the boundaries of traditional financial systems. While lending, trading derivatives, and fund management have been around, Decentralized Finance (DeFi) has shown the way to a new means of investing.
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Bitrue, a tier 1 crypto exchange platform, is launching an investment managing project unique to the market and brings three types of investment vehicles, staking, yield farming, and quantitative trading in one solution. It is not common for mainstream digital currency exchanges. For better reference, it is more of a product on offer by managers like Bitwise or Grayscale.
The solution will enable investors to deposit their capital and earn rewards in BMAX tokens with a 15-100% increase in yield (as compared to standard Staking). It is backed by real assets, as the new product is designed in a way to generate the reward through assets like Ethereum (ETH), Cardano (ADA), and Solana (SOL) to support the payouts made to the depositors.
Adam O’ Neill
The whole premise of the project is to make yield farming easily accessible to our users, while at the same time generating the most returns
The Tech Panda spoke to Adam O’Neill, Chief Marketing Officer at Bitrue, about the pain points in the market they’re trying to solve with BMAX.
“As DeFi is a growing sector, it still has many limitations in comparison to the traditional financial market. BMAX will solve problems that have existed in most DeFi protocols such as inflexible locking periods and impermanent losses,” he explains.
“Furthermore, it will be much easier to invest in as compared to methods such as using synthetic assets previously proposed by other projects. The whole premise of the project is to make yield farming easily accessible to our users, while at the same time generating the most returns,” he adds.
Features
BMAX removes the hassles inherent in engaging with the growing DeFi landscape while returning yield to investors. Its design is hinged on repositioning the Bitrue ecosystem as the go-to hub for all things DeFi.
“Whenever a user deposits in one of our yield farms, their funds will be allocated to different investment vehicles that are carefully curated by the Bitrue team. Users will then receive rewards in the form of BMAX tokens, which is limited in supply,” says O’Neill.
“The BMAX tokens can be reinvested again in the yield farms or used for trading on our platform. On top of that, investments can also be unlocked at any time, with a maximum wait period of one day,” he adds.
The new investment model will enable investors to deposit their capital and earn rewards in BMAX tokens with a 15-100% increase in yield (as compared to standard staking). The investment vehicle is billed to be managed by a specialized team set up by the trading platform.
It's time to reveal the $BMAX Asset Management Token!
This is a new deflationary token which helps maximize #YieldFarming rewards
-15-100% increase in YF rewards
-Community owned. NO team funds
-Solid business modelRead more including the litepaper: https://t.co/wF6YBWAz2V pic.twitter.com/CK2OWXJcmJ
— Bitrue (@BitrueOfficial) April 12, 2022
The project will enjoin participation from a wide range of users, and it will lower the barriers to entry as it will set no minimum or maximum investment limits. This condition makes it open to everyone including retail, institutional, and high networth investors (HNIs).
Prior to the launch of the product that pays out rewards in the new reward token, Bitrue has successfully managed Power Piggy. The product, as well as the exchange’s yield farming products, have raked in a cumulative fund of over $600 million and paid out $56 million worth of USDT as rewards.
“Bitrue was the first exchange in the world to launch a crypto investment service in 2018 with Power Piggy, and since then we’ve never stopped working to devise innovative ways to help users generate returns on their crypto holdings. BMAX is the latest step towards this goal. We can’t wait for our users to start earning this token and take back control of their financial futures,” he says.
Inspiration
The new BMAX token will be implemented into the existing Bitrue Yield Farming hub. As a result, depositors will be able to invest their assets (such as ETH, ADA, etc.) to Bitrue yield farming to access higher returns, paid in BMAX. The benchmark APY will be 15%-100% above the original POS-staking mechanism.
We are intrigued by the idea of liquid staking first proposed by the project Lido, and wished to bring the feature to our own community of six million people. We figured that adding this sophisticated investment strategy to our already established community would enhance the DeFi experience for the mass public
“We are intrigued by the idea of liquid staking first proposed by the project Lido, and wished to bring the feature to our own community of six million people. We figured that adding this sophisticated investment strategy to our already established community would enhance the DeFi experience for the mass public,” says O’Neill.
The BMAX USP
Since the new product is formed to generate rewards via assets such as Ethereum (ETH), Cardano (ADA), and Solana (SOL) to support the payouts made to the depositors, BMAX is backed by real assets.
These features of real-asset backing and diversified revenue generation models make BMAX sustainable and immune to crashes in the long run. The coin has zero supply at launch, which also makes it credible and trustworthy, since only investors in Bitrue’s yield farm can own the token. Regular buybacks made using the funds collected from the rewards pool will be a central theme for the BMAX tokens, which will keep the token deflationary.
There are many yield aggregator tokens/projects out there, but very few of them have communities of our size. Therefore, we believe that we are in a league of our own and do not have to worry about competitors
Investors have been losing money to the DeFi world through impermanent loss, hacks, and other related misfortunes that frustrates the DeFi sector. The new investment product is a direct solution to these and many other challenges.
The initial circulation will be derived from an airdrop of 5 million BMAX held for existing holders of the BTR token. After that, BMAX tokens will be distributed via yield farming pools. With a zero supply for the team, this will be the only way to obtain BMAX in the future.
Growth Story
O’Neill says they aren’t worried about competitors.
“There are many yield aggregator tokens/projects out there, but very few of them have communities of our size. Therefore, we believe that we are in a league of our own and do not have to worry about competitors,” he says.
This confidence, he says, comes from BMAX yield farming hub being backed by a strong community that has been around since 2018.
“It can provide much higher returns, as investments are not limited to one specific pool,” he says.
Read more: What’s causing the Yield Farming boom in DeFi? Answers from an expert
The trading volume of BTR has already increased four times since the BMAX announcement previous week, and O’Neill says they look forward to more success.
“We plan on expanding the BMAX yield farming hub to offer other investment products beyond staking and DeFi protocols for lending and providing liquidity. Quite possibly, we’ll include investments in other products such as NFT and automated trading,” he reveals.
