Foreword from our CEO
Overview of the digital asset investment landscape and how omni-chain quantitative trading pools will provide alpha-generating opportunities previously unavailable to regular crypto investors.
Harnessing alpha via market inefficiencies and asymmetric opportunities via AI-driven superrational quant strategies.
The cryptocurrency market volume is largely driven by discretionary and emotionally driven market participants. Deploying super-rational AI-driven quantitative trading strategies underpinned by mathematical models provides a unique way to harness alpha returns from market inefficiencies and asymetric opportunities.
With the advent of DeFi and its inception in early 2020, the appetite of crypto investors for on-chain and off-chain yield has been continuously increasing; during DeFi's infancy, a large number of users have been lured into investing in attractive APYs that were loosely justified and often posed severe counterparty risks due to numerous factors such as un-audited code, malicious smart contracts; honey pots or the susceptibility to rug-pulls.
With the maturity of the digital industry, retail and institutional investors continue to seek yield independent of bitcoin price movement. Therefore, the appetite for yield is ever-growing. However, when choosing the correct vehicle for achieving this yield, the question that needs to be addressed is its inherent capability to produce sustained long-term alpha since we have seen that many protocols and notable CeFi institutions promised investors yields that were fundamentally unjustified, such as the 19+% UST yield on Anchor Protocol and various other high yields that were offered on other DeFi & CeFi platforms.
The phenomenon with crypto investors is that until now, they have yet to care about the underlying alpha-generating mechanism that contributed to or created their yield.
With Kvants, we democratize access to institutional-grade investment strategies that enable crypto investors to allocate capital into quantitative funds that deploy algorithmic trading strategies which have undergone rigorous live-market testing and continue to be optimized for achieving maximum returns within the markets multiple times per quarter. Each strategy we tokenize and enable for investment via the platform's Kvants CeFi or DeFi versions has underlying principles contributing to yield generation.
Since we at Kvants believe in long-term token value accrual and sustainability, we emphasize how we distribute APY/APR on our platform and ensure that each of the revenue streams for investors in the form of APY is justified by real yield from quant trading.
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