Over time, financial markets crashes have shown that liquidity is key when you search for sustainable performance. Indeed, it allows you to take profit or stop loss, depending on your money management rules only, i.e without suffering from impact of collective investors’ psychology.

Looking backward, we can also observe that exponential performance is often derived from niche anomaly reserved to few players, leading to a bubble with not enough market depth to hedge. And the end is also often easily predictable: a blood bath. Didier Sornette has developed interesting models based on seismic activity to try to time such events.

Even if we are convinced that cryptocurrencies will impose their secured and transparent features in a near future to the classic investment world, it is still a young market. This explains that the bid-ask spread depends on the relevant exchanges with some risk free arbitrages. However, it is difficult to do arbitrage for size. This was the case in the old equity markets back in the 90’s.

The table from Bitcoincharts.com illustrates the BTC/USD discrepancies as of 04/08/2017:

We feel that it is time to boost the crypto investment world, by bringing the fiat liquidity and our trading experience in this space. Indeed, what we are proposing is to collect money in the cryptoworld, convert it in a world where you have infinite liquidity, generate performance and bring it back home safely. This is precisely why the DAFs have been designed for.

A DAF will have, throughout its entire life, the mission to deliver sustainable performance to its token holders. To achieve its goal, this smart contract will have access to algorithmic strategies, the trading bots. Some of them will entirely run in the cryptoworld. Some of them will run in the fiat world and will allow to transfer value from one universe to the other. As the saying goes, money doesn’t stink. New crypto instruments (ex: Futures) allow to structure such appealing proposals without being the subject of fiat vs crypto currency volatility.

Generating performance for token holders while reinforcing the crypto world liquidity will definitely be the virtuous cycle that could allow the crypto world to accelerate its development and allow for a widespread adoption.

We have presented in our Blackpaper the structuring process as well as our first 10 trading bots to do so.

Please visit our website www.napoleonx.ai and feel free to contact us for more information.