Libertify generates more returns risk-adjusted than a Buy & Hold strategy on any crypto asset (while protecting the investor from excessive volatility). How do we do it?
We all know that seatbelts protect us from unpredictable events, but what about the unforeseen market dangers when you’re investing? That’s why we invented our own Crypto Seatbelt! In volatile markets, the crypto seatbelt acts as a dynamic cash reserve by converting part of your holdings/tokens into non-volatile stable coins. When things are calm and stable again it will return those funds back to their original tokens.
We provide the investor with disciplined advice as soon as a market occurrence indicates that a change in their portfolio may be advantageous. With a single click, investors make their decision and the trade is completed. Market accidents are minimized thanks to our crypto seatbelt.
Be a smarter Buy & Hold investor.
In only 25 years, the Internet revolution, which began in the 1990s, has revolutionized many facets of society, including media, shopping, music, and travel, among others. All of this is due to the more innovative and revolutionary technology that has contributed to the development of new applications.
Libertify is convinced that the world of finance will move towards a hybrid model of centralized and decentralized finance, with new players (decentralized exchanges, automated market makers, lending protocols), new organizational forms (DAO, LAO), new financial instruments (tokenization, smart contracts, vaults), and non-custodial storage methods for blockchain-based assets.
We are on the cusp of a paradigm change that promises to be more profound than the last.
The magnitude of the upcoming changes will be all the more astounding considering that they will be based on a technology that, for the first time, enables us to escape the grip of economic power on building trustless relationships.
Banks have developed into middlemen that enable you to safely deposit your money.
Trust was the essential component of the relationship, constituting its heart. The development of banking services has been supported by funds from customers. Without the capacity to keep client cash safely, financial instruments, money transfers, and other banking services would not exist in their current form.
Blockchain technology challenges the authority of banks by enabling smart contracts on blockchains to generate greater trust and security programmatically than conventional channels.
This technology is based on:
1- Immutability (transactions are irreversible),
2- Transparency (all transactions are verifiable),
3- Security (using cryptography)
As a result of its permissionless and trustless natures, the blockchain technology frees people from centralized authorities.
Libertify is on a mission to make the Web3 economy safer by developing a suite of tools and services to help investors better manage their risk.
The primary cause of investors’ risks is market volatility, which renders their behaviors unpredictable and leads to significant financial losses when emotions take control.
In order to deliver safer financial services and improve risk-adjusted performance, our primary objective is to lower the inherent volatility of all instrument types.
The HODLERS are the focus of Libertify’s attention.
HODL, an abbreviation for “hold on for dear life,” has become a mantra among cryptocurrency investors to describe a long-term investment approach. This strategy instructs amateur traders to refrain from trying to timing the market and to instead hold their coins.
The “Buy-and-Hold” strategy is popular among investors, and Libertify is here to enhance it by delivering a Smart Dynamic Buy-and-Hold strategy that may provide a much higher risk-adjusted return.
Libertify intends to disrupt the market for financial services by developing a more solid and reliable alternative.
As a consequence of the reduced volatility at the foundation of our value proposition, Libertify intends to dramatically enhance all sorts of financial service offerings.
We believe that the simplicity of the solutions facilitates a higher comprehension and, therefore, a broader acceptance. We provide a road map for reducing asset volatility, with each phase consisting of the confirmation and improvement of our tools in to achieve the ultimate objective, which is:
To create a complete financial ecosystem :
The Libertify roadmap is composed of three main steps:
1- Score investors’ behavior and protect their assets with dynamic exposure between the asset and a non-volatile reserve such as stablecoins.
2- Diversify the investor portfolio & Optimize the risk profile of the portfolio.
3- Create a new non-custodian asset class: L-Vaults.
Step 1: Score investors’ behavior and protect their assets with dynamic exposure between the asset and a stablecoin
Our first product is made up of four parts:
An artificial intelligence risk framework that provides a comprehensive assessment of each investor’s risk appetite by rating his interactions when confronted with financial decisions and different market regimes.
A financial algorithmic framework for continuous analysis of asset prices on the market to warn investors of a risk of loss or an opportunity for gain.
A nudging (soft incentive) framework interprets the data from the previous two tools by creating trading suggestions to offset investor cognitive biases, therefore greatly improving his risk-adjusted performance.
A Natural Language Processing framework capable of generating complex, human-comprehensible explanations of unstructured, deep data, with the ability to tint the contents with nuances that suit the investor’s risk profile.
The recommendations sent to the investor by our service are based on a smart and dynamic Buy & Hold concept developed by Libertify, which divides each asset among a non-volatile cash reserve and the asset itself prone to market risk.
Libertify nudges the investor in two ways :
– An opportunity to execute an exit trade as part of the protection of the underlying asset, or an entry trade on the market to take advantage of a rebound potential or established uptrend.
– A position sizing calculated based on an investor’s risk tolerance.
After a long use period, investors may choose to utilize the Autopilot mode rather than manually assessing and validating each recommendation.
Step 2: Diversify the investor portfolio & Optimize investors’ portfolio risk profile
Libertify has developed a diversification engine to provide each investor with unique dynamic allocation based on (1) their risk profile, (2) thematic bespoke funds, and (3) availability check for buying the funds’ assets while ensuring that these later are available from the investor’s financial intermediaries (centralized, decentralized exchanges, neo-banks).
Libertify provides a variety of diversified funds in one click. Each fund is composed of ”protected” assets, dynamically allocated between the aset and a stablecoin, depending on an investor’s risk profile.
Libertify keeps track of the Net Asset Value (NAV) of each portfolio and the Value-at-Risk (VAR), which measures the maximum statistical risk of a portfolio for a given period and within a high confidence interval.
This calculation is based on how the assets are allocated and how risky each asset is. Libertify tells investors to rebalance their assets to improve their risk-adjusted performance if the VAR of the portfolio rises outside of an acceptable range.
Step 3: Create a new asset class
CeFi (Centralized Finance) : A revolution in the world of exchanges
Through the Libertify application, which is a SaaS layer (Software as a Service) on all centralized exchanges, an investor can buy assets from these platforms without worrying about volatility thanks to the Libertify crypto seatbelt and Autopilot features, which “wrap” the assets.
The wrapper dynamically allocates all or part of the investment between the asset and a non-volatile asset (stablecoin, fiat), thus lowering market risk. Consequently, Libertify allows investors to trade across all exchanges by improving risk-adjusted performance.
DeFi (Decentralized Finance) : L-Vaults (L for Liberty)
By developing a defi protocol allowing investors to purchase major tokens (BTC, ETH, and . . .) through specific risk-reducting vaults for each token,
Libertify is a pioneer in the conscience finance space.
Everyday, the L-Vaults determine the ideal allocation between the underlying token and a stable asset (stablecoin). L-Vaults are offered in several versions based on the risk profiles of investors (from very conservative to very dynamic investors).
As a consequence, bitcoin may be invested with a conservative risk profile while yet achieving a performance that is suited for the investor’s risk tolerance. As a result, the trader has far less swings and drawdowns during market participation.
Any tokenizable asset, including stock market securities, may be safely encased within a L-Vault using this process. The result is that the risk of your assets decreases dramatically as volatility is reduced.
This letter outlines our strategy for the next 18 months. In order to develop a product that is simple to use, despite its plethora of features, we might face many unforeseen challenges.
Libertify go-to market will be numerous, and we’ll look into both direct client acquisition and partnering with companies that already have captive consumers such as exchanges, wallets, neo banks, traditional banks, web3 infrastructure providers and investment advisors.