Asset Management Protocol DEXTF Ramps Up in 2021

William Peaster
Sep 14, 2021
|6 minutes read
dexTF logo

DEXTF is an up-and-coming trading and fund management protocol for tokenized portfolios. These “XTF” portfolios, also known as decentralized traded funds, allow users to earn in DeFi by 1) minting compelling token indexes, 2) creating new customizable indexes with idle tokens to accrue management fees, and 3) supplying assets to XTF liquidity pools in exchange for trading fees and liquidity mining rewards. 

In mainstream finance, exchange-traded funds (ETFs) offer an avenue for investors to gain exposure to baskets of securities quickly. However, these ETFs trade on centralized exchanges that are permissioned and whose markets are open only on weekdays into the early evening. In contrast, DEXTF offers users the ability to flexibly gain exposure around baskets of top cryptocurrencies permissionlessly and on a 24/7 basis

So that’s the 101 on DEXTF, but what about where the protocol’s heading from here? To be sure, the best clues on DEXTF’s future come from the various roadmap achievements the project’s already notched in 2021. 

DEXTF’s new dashboard for decentralized traded funds.

What’s new with DEXTF?

Since the start of the year, the DEXTF project has actualized no less than 5 major advancements that will play pivotal roles in defining the trajectory of the protocol going forward. 

Finishing up DEXTF V2

Back in January, the DEXTF team announced they were targeting Q2 or Q3 this year to release the asset management protocol’s optimized V2 system. Development proceeded on schedule ever since, as Phase 1 of V2 is indeed being released on June 17th. 

Checking out the new sidebar system for selected XTF tokens.

This initial phase of the upgrade will center on the release of an overhauled user interface (UI). The new UI is considerably more streamlined and thus easier to navigate than DEXTF V1’s UI was, though during Phase 1 the V2 front-end will remain connected to the project’s V1 smart contracts. Phase 1 will also facilitate a feedback period for approximately 10 days in which community members can identify issues and have them fixed.

Phase 2 of the V2 rollout is slated to kick off later in the summer, and it will involve migrating DEXTF V1 users over to the new V2 smart contracts. Then once 80% of the TVL has migrated over from the V1 contracts and other final checks are completed, the DEXTF team will launch Phase 3, the final release of V2, which will activate a number of advancements over DEXTF V1, like a new active asset management feature

The new DEXTF investment UI. 

Notably, this new active management feature lets portfolio managers easily rebalance their portfolios on an ongoing basis.The rebalancing feature will improve performance fees for PMs, as it allows them to attract further deposits by being able to optimize their pools’ weightings in the face of changing crypto markets. This superior flexibility is in contrast to the V1 system, which permanently and passively tied PMs to their pools’ original weightings. 

When all is said and done with the V2 rollout, fund fees will be activated and will start generating revenues for both PMs and the DEXTF treasury and funds will become modular, giving creators the ability to opt-in to a suite of new features like margin shorting, option issuances, yield farming, and more. 

DEXTF’s new fund creation dashboard.

Tokenomics revamp

Earlier this year DEXTF governance considered and approved a proposal, DIP-3, to simplify and refocus the distribution of the project’s governance token, $DEXTF. The proposal passed because the DEXTF community found its inaugural liquidity mining terms over-incentivized the activity of PMs and under-incentivized the activity of investors, a dynamic DIP-3 was created to rectify. Since the proposal’s passing, XTF token investors now earn a larger and fairer cut of DEXTF rewards.

Going multi-chain

The decentralized finance ecosystem has become a cross-chain ecosystem. DeFi activity isn’t isolated anymore just to Ethereum; rather, it’s blooming on and moving among multiple chains and counting. To tackle this reality head-on, DEXTF announced its first cross-chain integration with Algorand back in March, which saw the project launch as DEXMF (“Decentralized Managed Funds”) on the highly scalable smart contract platform. It’s the first of many such cross-chain integrations to come for the protocol, whose leadership is notably exploring deployments to layer-two (L2) solutions at the moment. 

Treasury creation

In April 2021, DEXTF governance considered and approved a proposal, DIP-4, to create a treasury for protocol development. The asset management protocol was released as a “fair launch” project with no $DEXTF allocation for a project treasury, so the passing of DIP-4 unlocks 15M $DEXTF for development and marketing operations. This new war chest ensures DEXTF has the runway it needs to blossom while the project remains young and evolving. 

Launched the DEXTF Green Bitcoin Token

DEXTF recently partnered with MOSS to release the DEXTF Green Bitcoin Token ($XTF.GBTC). The innovative XTF token represents a basket of WBTC and tokenized carbon credits, $MCO2 issued by MOSS. The idea? To provide investors an avenue to easily gain portfolio exposure to tokenized carbon-neutral bitcoin. The offering comes as calls to curb Bitcoin’s massive energy footprint have reached a fever pitch, so the DEXTF Green Bitcoin Token is a textbook example of how an XTF token can be customized to meet the needs of modern investors.  

Learn more about DEXTF

DEXTF has plenty of blooming to do from here as the project looks to continue adding support for more tokens and more blockchains, L2s, and sidechains. In the meantime, don’t sleep on DEXTF V2, as it provides some of the most versatile portfolio management capabilities available in DeFi today. If you’re interested in exploring the project further, check out DEXTF’s FAQ, video tutorial resources, and Youtube channel or consider tracking the project’s activity on Discord, Telegram, and Twitter

Disclosure: This post is part of our paid promotional DeFi Pulse Partners Program; We’ve partnered with DEXTF to help educate and inform the community about the DEXTF Ecosystem. As always, we’re committed to providing the entire community with quality, objective information, and any opinions we express are our own.