Introducing PEAKDEFI Protocol
PEAKDEFI is a decentralized, performance-based asset management fund, created to connect investors and asset managers for capital growth.
“The vision of PEAKDEFI is to enable everybody on the planet to grow their wealth, no matter what position they are in at the moment.
We want to provide a decentralized investment gateway that is easy to use and accessible for millions of people to shape their future. That’s the mission at PEAKDEFI.”
What is the PEAKDEFI Fund?
The Idea of a mutual fund is basically pooling your money with the money of other investors and investing it in a portfolio of different assets. The PEAKDEFI fund is a decentralized fund, programmed as a smart contract on the Ethereum blockchain, managed by different Managers in a decentralized, permissionless and smart way to get the best outcome for everybody involved. Investors can invest in the contract and buy a share of the PEAKDEFI fund, whereas managers can participate in on-chain trading with the fund’s capital.
Great Opportunity for Investors and Asset Managers
PEAKDEFI was created to disrupt the whole investment environment. While current solutions have a lot of flaws, especially for small investors and asset managers, PEAKDEFI paves a completely new way by creating one global fund for everybody, transparent to anybody, governed by all together, to reach the PEAK of the Markets.
Security Audit of the PEAKDEFI Smart Contract
Security has the highest priority at PEAKDEFI. Our system was reviewed and audited by Quantstamp, one of the best smart contract security companies, to ensure the security of the PEAKDEFI fund and the staking process. You can verify this information by visiting Quantstamps certificate database and search for “PEAKDEFI”. Or you can just click here to see the full audit report.
Benefits for Investors
Investing in the PEAKDEFI fund is as easy as counting 1,2,3. Our PEAKDEFI platform is programmed on a Smart Contract, which means that each investor can simply connect to the platform with his own ETH wallet and invest with Ethereum or 70+ other ERC20 tokens.
You are in control of your capital
All user deposits are locked in smart contracts without any third party having direct access to those funds. PEAKDEFI is non-custodial and permissionless and is never taking control of any assets. It can be used directly from a wallet (i.e. MetaMask / WalletConnect) that only you control.
Autonomous Optimization to achieve the best results
You don’t have to worry about choosing THE right manager, who will manage your capital.The Distribution of the managed PEAKDEFI fund adjusts automatically between the best asset managers through smart contracts to achieve optimal results. You just have to invest in the PEAKDEFI fund and you are ready to make profits.
Short Trading Cycles to guarantee a flexible Capital Management
In today’s world, flexibility is one of the most valuable treasures. To guarantee the managers as well as the investors more flexibility there is a fixed management period of just 57 days, followed by a 3 day transition phase, where investors can sell their PEAKDEFI Shares again. We refer to this whole period as 60 day cycles, where managers can make proper trading decisions while investors can access their funds
In addition, investors have the opportunity to generate additional income through referrals and staking.
When profits are generated, they are divided as follows:
If the fund was profitable in a cycle the profits will be shared automatically between investors, fund managers and affiliates in the following way:
- 65% of the Profits will be distributed to the investors
- 15% of the Profits will be distributed to the fund managers
- 20% of the Profits will be distributed to the affiliates
Opportunity for fund managers
Instead of managing an own fund the idea at PEAKDEFI is to manage one global fund with many other managers together in a decentralized and permissionless way. This is a completely new and disruptive way for asset managing that also implies different managing approaches compared to traditional hedge funds and raises a couple of questions:
- How can managers manage the capital of investors in a decentralized environment?
- How does the distribution of the assets under management (AUM) work?
- How does the handling of good and bad managers work?
- How can inactive managers be treated, who block capital to grow?
Like investors, the managers connect their Ethereum-wallet with the platform to interact with the smart contract. Managers can open and close trades, even margin trades, all in a decentralized way. To provide all these solutions the PEAKDEFI platform interacts automatically with different decentralized protocols like 1inch, Kybernetwork, Uniswap and Compound Finance.
Automated AUM Distribution via Reputation Token
To ensure that managers have a fair share of the AUM (Assets under Management), so-called reputation tokens are used. A fixed sum of 100 reputation token must be acquired by every manager when he or she enters the platform and they reflect a certain share of the AUM. How much AUM a Reputation Token represents changes due to various factors such as the number of active traders, the amount of investments made to the fund and other factors. If more Managers enter the fund it has to be shared between more Managers and therefore every Manager get’s a smaller piece to manage. But more traders usually mean less volatility and therefore more stability for the fund.
The Amount of Reputation Token is directly linked to the manager’s personal performance. While every Manager starts with a fixed sum of 100 Reputation Token, over time the number of reputation tokens and therefore the capital for the respective manager can increase or decrease, based on the trading decisions of the Manager. Reputation Token can only be purchased once, at the beginning. They can’t be sold nor can a Manager purchase more.
Managers have to stake their reputation tokens in order to set trades, which calculates a risk threshold level for this specific trader. The risk threshold mechanism is also monitoring how active the managers are and inactive trader will lose their reputation tokens and there shares, if they don´t trade. Fund managers, like investors, are bound to 60-day cycles and can trade for 57 days. There is a trading stop during the 3-day intermediate phase where investors can sell their funds.
Benefits for fund Managers
There are several advantages to being a manager at our PEAKDEFI fund. One of the most attractive advantages is of course the profit sharing. Each manager receives approximately 15% of the total profit of the PEAKDEFI fund. This depends on the manager’s performance and the activity he has shown during the cycle of trading. Another advantage is that you can start immediately as an asset manager by buying reputation token and get a piece of the fund to manage without consulting different clients first. That’s the beauty of a decentralized protocol, there are no boundaries. Of course, there are mechanisms to avoid losses for the fund. Therefore bad traders lose their reputation (token) fast and will have consequently less AUMs. But on the other hand, good traders get automatically more reputation token (and therefore AUM), which means more income and no search for clients anymore.
What is PEAK Staking?
Besides investing in the PEAKDEFI global fund, you can grow your capital by staking PEAK. At a very basic level, “staking” means locking your crypto assets for a certain period of time for a specific purpose. With regard to PEAK, you’ll get rewards for decreasing the current circulating supply in the market and stabilizing the PEAK price by locking your PEAK on the PEAKDEFI platform. 50% of the total PEAK supply, which converts to 1bn PEAK, is reserved for staking rewards. You can earn up to nearly 83% in PEAK Staking per Year!
The PEAK-Staking Formula depends on 3 Parameters: The Amount of PEAK to stake (Bigger Bonus), the period of time you are willing to lockup your PEAK (Longer Bonus) and the stage when you start staking (Early Factor). The amount of PEAK staked (s) can be 10–1,000,000 PEAK. The time the PEAK are staked for (d), can be 10 to 1,000 days.
Bigger Bonus p.a. B(S)
The Bigger Bonus p.a. B(S) is determined by the amount of PEAK that you are willing to stake (s). You can earn up to 10% on top of the regular staking rewards.
The Longer Bonus L(d) is determined by the length of time (d) that you are willing to stake. The minimum period is 10 days, the maximum 1000 days. The longer you stake the higher your APY ( Annual Percentage Yield). Due to the daily growth factor (β) on top of the daily fixed factor (α), it is always more lucrative to stake longer in one piece (e.g. 100 days in a row) than for multiple short periods (e.g. 10 x 10 days).
The earlier you start staking the greater your rewards are. This is due to the Early Factor (w). There is only a specific amount of available PEAK for staking ( 700 Mio.) The staking rewards are reduced by the factor (w) that depends on the amount of PEAK which has already been spent or is reserved. The less PEAK are remaining for staking, the less the APY (Annual Percentage Yield).
Rewards for inviting friends
We have also thought about rewarding our investors who recommend our PEAKDEFI fund. So if you decide to recommend the PEAKDEFI fund, the platform will automatically pay you a small commission. There are two types of commissions, one is a percentage of the PEAKDEFI fund’s profit and the other is a commission when your partners participate in the staking program. With our small reward plan we want to give you an additional incentive to recommend our platform to others.
PEAKDEFI Ethereum Wallet for Android and iOS
In addition to our PEAKDEFI protocol we have launched our PEAKDEFI wallet app to onboard non-advanced crypto users in an easy way. The App is a secure Ethereum wallet app that is specialized for DeFi and should be included in every crypto portfolio. You can download it for iOS and Android on app.peakdefi.com. It is free and available for everyone, even if you don’t have anything to do with PEAKDEFI. Some core features of the app are:
- It’s non-custody & decentralized, so that private keys and mnemonic phrase are generated locally and stored in the vault of the smartphone.
- Create and import (by private keys) an Ethereum wallet
- Send, receive and track ETH and ERC20 Tokens
- available in multiple languages
- QR-Code scan available
- An integrated DEX (decentralized exchange) is available
- “WalletConnect” protocol is also implemented for connecting decentralised applications to mobile wallets with QR code scanning or deep linking
- Buy Cryptocurrencies within our PEAKDEFI wallet app with FIAT through our cooperation with Moonpay
Also more DeFi protocols like Compound, Maker, Aave and many more will be implemented.
As you can see, the PEAKDEFI Wallet is a great Ethereum wallet, which can be a great help for every crypto user, even independent of our platform.
If you want to get a full introduction and update about our PEAKDEFI wallet app. Please check this intro and update article on our Medium profile.
Ecosystem and Tokenomics
The PEAKDEFI protocol is part of the PEAK ecosystem, which includes the PEAKDEFI fund, the PEAKDEFI wallet app and the education and software platform MarketPeak. The PEAK token distribution is currently running mostly on the MarketPeak platform, but will now be additionally run by the PEAKDEFI platform and its staking. Overall there will be a total supply of 2,000,000,000 PEAK Token (2 billion PEAK).
Here is a better overview of our PEAK token distribution
The majority of our PEAK tokens will be distributed via PEAKDEFI staking (50%). These tokens are created “on the fly” until the amount of 1 billion has been reached. There will be two ways of staking. The first, “normal” way is to lock up PEAK to stabilize the liquidity and price and earn staking rewards. The second way, a so-called protection staking will be launched in v2 next year. We expect that it will take at least 3 to 5 years until the 1 billion PEAK are distributed through staking.
360,000,000 PEAK (18%) are reserved for members of our educational and software platform MarketPeak. So far, almost 6% have been distributed on the fly. If the distribution of 18% won’t be reached, e.g. due to stagnation of the MarketPeak Platform, the remaining reserved PEAK tokens will be burned.
200,000,000 PEAK (10%) will be distributed to the internal team and founders. These Tokens will be minted immediately with a 3 years vesting period.
15% of the total supply, 300.000.000 PEAK, will be reserved for private and institutional Investors, who facilitate the development of the platform. These Tokens will be minted with a 3 years vesting period as soon as the investors get involved. So far no investors participate in the PEAKDEFI development. If no investors join, we will use the PEAK for the protection staking for the community.
138,000,000 PEAK (6.9%) of PEAK will be used as yield farming rewards for liquidity providers which will go live in January 2021. More details coming soon.
2.000.000 PEAK have been provided for the initial liquidity in PEAK/USDC and PEAK/ETH on Uniswap during the last month.
We have big plans with our PEAKDEFI platform. The launch of the platform is just the beginning of a project that will grow and develop over the years. Here is an outlook on the current roadmap.