DEXTF is a digital asset management infrastructure on blockchain that allows anyone to create, mint, and redeem XTF funds. At present, DEXTF supports more than 70 tokens and funds are soft-limited to 10 tokens (this limit will be increased in next releases). The XTF funds’ ticker symbol and asset weights are determined by the fund manager when creating the fund. Each XTF fund is an ERC20 token with its own address and contract allowing users to hold, trade, transfer, redeem and utilize XTF fund like any other token. XTF funds are also composable, both downstream (as any ERC20 they can be used by other protocols as collateral or underlying for any DeFi application) and upstream (they can hold various other ERC20 like decentralized options, yield producing tokens, liquidity pools, etc.).
What makes DEXTF unique?
The DEXTF team spotted a gap in the DeFi ETF space for an easy, accessible way for anyone to create and manage decentralized funds.
They sought to create a simple and efficient asset management infrastructure that followed the team’s philosophy: that only the bare minimum logic should be on chain. Furthermore DEXTF does not rely on oracles: the risk of manipulation present in complex oracle or rebalancing mechanisms tends to result in the use of admin keys in order to respond in a timely manner to attacks or exploits. Finally DEXTF does not rely on other protocols for the funds to trade: this reduces the attach surface and also limits the need for admin key to upgrade the connectivity when the underlying protocols upgrade.
The DEXTF team believes that true adoption from large players, institutions and the masses wll only be possible without admin keys and their connected risks.
DEXTF’s core protocol relies on simple functions, safe and eticulous coding and strong game theory. The entire mechanism relies solely on arbitrage and market forces for fund pricing, rebalancing and safety.
Finally, while logic can be programmed into a smart contracts, a community of properly incentivized stakeholders is one of the strongest and smartest solution to many problems.
Ultimately, reducing Fund Management to their simplest form makes XTFs simpler to utilize in a way that is reminiscent of the highly modular design philosophy of UNIX. DEXTF can almost be thought of as a trust-minimized set of building blocks that creates economic incentives and opportunities for the community to be rewarded for taking up each role in the ecosystem.
DEXTF Governance Token and Ecosystem Rewards
DEXTF is an ERC20 token created to govern the DEXTF protocol. DEXTF tokens can be used to vote on proposals for protocol changes including the adjustment of system parameters like fee factors. DEXTF holders may also delegate their voting power to another address or delegate who may propose, vote on, and execute proposals on their behalf.
Additionally, the distribution of DEXTF tokens has been designed to reward network participants for performance, liquidity, volume and other metrics in an effort to increase adoption of the DEXTF Dapp and XTF token funds.
