Market Opportunity

Kvants: Risk-adjusted returns from rationally derived market alpha

With the advent of increasing investor risk awareness after numerous industry events that have inclined investors to take an approach to risk management more seriously, Kvants offers inventors the opportunity to allocate capital into risk-adjusted strategies. These strategies seek to extract alpha from opportunistic market events while diminishing the room for drawdown.

In a landscape where institutional investors typically are the only ones with access to quantitative trading algorithms and sophisticated alpha generation strategies, a market opportunity is present for Kvants to emerge as the democratizing force, adding scalability, anonymity, and availability to a previously opaque market of hedge fund investing.

Extracting The Relevance of DeFi TVL Market Size To Kvants

With the comeback of DeFi and the increase in TVL, Kvants will enable a new avenue for an active alpha generation due to introducing the Kvants investment-enabled marketplace. For the first time, users can harness inefficiencies of emotionally based trading from the decentralized perpetual marketThehe investor demographic tends to be extra emotionally driven due to thf ease of market participation.

As witnessed during the rise and fall of many protocols during the DeFi summer of 2020, with unpredictable and often un-justified protocol yields, Kvants views this market size as a potential marketable audience, extracting on the inherent low-level of returns with sustainability unproportionate levels of counterparty or systematic risk. With 40% of systematic risks taking place in environments of extreme loss, posing hazards for investors when interacting with protocols and smart contracts during clear day environments since the systematic risk of smart contracts can arise during stress periods. A risk which is often unclear to the everyday investor.

Marketplace & DeFi Management Platforms

The potential for an investment-enabled marketplace within the Web3 space is significant, particularly given the success of DeFi yield management platforms and NFT marketplaces. These innovations have shown a strong appetite for decentralized and blockchain-based investment opportunities. Integrating quantitative trading strategies into this space could attract a sophisticated investor base seeking to blend the technological benefits of Web3 with the data-driven insights of quant trading. The growing trust and interest in decentralized finance suggest a ready market for platforms offering advanced, secure, and transparent investment mechanisms.