Investment Firm Launches ETF-Like Product for Compound Yield Farmers
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New Zealand-based investment firm Techemy Capital has created the Compound investment portfolio, which is comprised of proxies of stablecoins dai and USDC.
- The “mini-ETF” allows holders to earn interest on decentralized lender Compound and gain exposure to “yield farming.”
- The portfolio will “yield farm” – borrow against itself to release free COMP tokens on users’ behalf – sometime later this year.
- Yield farming has turned into such a feeding frenzy that Compound changed the distribution model Tuesday to stop traders from gaming the system.
- At press time, COMP tokens traded at $214 after peaking at $350 just over a week ago, according to CoinGecko.
- Alongside the Compound vehicle, Techemy also launched bitcoin- and ether-based investment portfolios.
- All three portfolios are built on Ethereum and are self-custodial, only available to accredited investors.
- Fran Strajnar, Techemy Capital’s executive chairman, told CoinDesk: “These initial products can maybe be viewed as a ‘mini ETF’ for now.”
- Techemy’s proprietary trading desk will actively manage the bitcoin and ether portfolios.
- Strajnar said Techemy was working with Japanese banks and asset managers to roll out a fully-fledged ETFs sometime in Q1 2021.
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