A Closer Look at The Decentralised Finance Portfolio

Published on
February 1, 2022

Decentralised finance (DeFi) is a movement that seeks to bypass traditional financial intermediaries by transferring financial services to the blockchain. Instead of just decentralising transactions (as with Bitcoin), DeFi aims to decentralise larger parts of the financial industry. This is achieved through smart contracts, which are snippets of computer code that allow complex transfers and agreements to be made on the blockchain without the need for approval from a central authority. Dmitriy Klimov, head of asset management at Coinpanion comments:

“Decentralised Finance is a real eye-opener at the moment, attracting the attention of both retail investors and large institutional players. The Total Value Locked (TVL) in the DeFi space has grown more than 10 times since the beginning of 2021 and this is just the first step towards the start of a true adaptation of the technology. At Coinpanion, we believe that decentralised finance will reduce costs for financial institutions and be fully integrated into traditional finance in the near future on both micro and macro levels.”

To unlock the potential of DeFi, Coinpanion designed a DeFi Portfolio, so that you can participate in the open and global financial ecosystem now.

Explore the carefully thought out composition below:

Decentralised Exchange

SushiSwap (SUSHI)

A multi-chain decentralised exchange

Sector - DeX, Lending, Staking

SushiSwap is a multi-chain decentralised exchange that utilises an automated market-making system rather than a traditional order book.

Loopring (LRC)

Decentralised token exchange protocol
Sector - DeX, Layer-2 Rollup

Loopring is an open protocol for building high-performance, order book decentralised exchanges on Ethereum. Their goal is to enable the building of highly scalable exchanges without compromising Ethereum-level security through a zero-knowledge rollup construction.

Curve Finance (CRV)

A decentralised exchange for stablecoins
Sector - DeX, Yield Farming

Curve Finance is a decentralised exchange optimised for low slippage swaps between stablecoins or similar assets that peg to the same value. The protocol employs an automated market maker that was built specifically to give DeFi users low slippage and liquidity providers steady fee revenue.

UniSwap (UNI)

A decentralised exchange based on Ethereum blockchain
Sector - DeX, Yield Farming

Uniswap enables the easy exchange of cryptocurrencies. It is a promising DeFi protocol built on Ethereum and uses a special automated market-making system. Uniswap works for the common good and is a tool for members to easily exchange tokens without paying platform fees or dealing with negotiators.

Decentralised Finance Smart Contract Protocols

Avalanche (AVAX)

An open-source platform for launching decentralised applications

Sector - Smart Contract Platforms

Avalanche is an open-source platform for launching decentralised finance applications and enterprise blockchain deployments in one interoperable, scalable ecosystem. Developers who build on Avalanche can create applications and custom blockchain networks with complex rulesets or build on existing private or public subnets.

Terra  (LUNA)

A financial application platform
Sector - Smart Contract Platforms, Stablecoins

Terra is an open-source blockchain platform for algorithmic stablecoins, that are pegged against traditional fiat. Terra's native currency Luna is a versatile token in the network that is extremely important in the rise of the terra platform.

Lending

Aave (Aave)

A peer-to-peer lending platform

Sector - Lending

Aave is a decentralised lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen. This allows a borrower to gain exposure to different cryptocurrencies without owning them outright. Aave is one of the most popular DeFi projects and is an excellent option for those interested in becoming early investors in the DeFi market.

Maker (MKR)

A decentralised autonomous organisation for the dai stablecoin
Sector - Lending

Maker is a revolutionary decentralised autonomous organisation (DAO) that allows anyone to lend and borrow cryptocurrencies without a credit check. Through the MakerDAO system, users can use Ethereum as collateral to generate new tokens. Maker is both a utility and governance token, making it one of the most exciting and unique cryptocurrencies on the market.

Compound (COMP)

Decentralised money market protocol
Sector - Lending

Compound is a lending platform built on Ethereum that enables users to permissionless borrow or lend from a pool of assets. Rather than interest rates being set by individuals, they are determined algorithmically based on the proportion of assets lent out.

FAQ

How does Coinpanion work?
We help you to invest in the cryptocurrency market like a professional. Simply select a smart portfolio and get started straight away.

We help you to invest in the cryptocurrency market like a professional. Simply select a smart portfolio and get started straight away.

How much does Coinpanion charge?
If you invest in a portfolio (and not in a single cryptocurrency), a service fee of 2% per year is charged. The fees can be viewed at any time in your transaction history.

If you invest in a portfolio (and not in a single cryptocurrency), a service fee of 2% per year is charged. The fees can be viewed at any time in your transaction history.

Who can invest?
You need to be over 18 and live in a country that is part of the European Union or the European Economic Area (Switzerland, Liechtenstein, Norway, Iceland).

You need to be over 18 and live in a country that is part of the European Union or the European Economic Area (Switzerland, Liechtenstein, Norway, Iceland).

Can companies invest?
Yes, we already have several corporate clients. The minimum investment for corporate accounts is €25.000. Please send us a request to support@coinpanion.com and we will take care of it.

Yes, we already have a large number of corporate clients. The minimum investment for corporate accounts is €25.000. Please send us a request to support@coinpanion.com and we will help your company along the way.

What is the minimum deposit?
The minimum deposit is €50.

The minimum deposit is €50.

How long does it usually take for my transfer to arrive?
That depends on your bank. On average, a transfer takes 1-3 working days.

That depends on your bank. On average, a transfer takes 1-3 working days.

How can I set up a savings plan?
After you have transferred your first deposit, you can easily set up a savings plan in your dashboard. The minimum monthly investment is €10.

After you have transferred your first deposit, you can easily set up a savings plan in your dashboard. The minimum monthly investment is €10.

When will the start bonus or referral bonus be credited?
The start and referral bonus will be credited within 48 hours after receipt of payment.

The start and referral bonus will be credited within 48 hours after receipt of payment.

What happens to my deposits and withdrawals?
Deposits and withdrawals are carried out via third-party providers who take care of the purchase and custody of the cryptocurrencies. Coinpanion takes care of the rest.

Deposits and withdrawals are carried out via third-party providers who take care of the purchase and custody of the cryptocurrencies. Coinpanion takes care of the rest.

How can I deposit money?
We have several payment options for you. You can deposit money with your debit card, credit card and with a direct bank transfer.

We have several payment options for you. You can deposit money with your debit card, credit card and with a direct bank transfer.

How/when can I withdraw?
You can withdraw at any time on your dashboard.

You can withdraw at any time on your dashboard.

Is there a minimum term?
No, you can withdraw at any time.

No, you can withdraw at any time.

In which currencies can I withdraw?
Withdrawals are possible at any time and are currently exclusively in euros.

Withdrawals are possible at any time and are currently exclusively in euros.

What is the difference between the Coinpanion portfolios?
Each portfolio has a unique allocation. You can find out more here.

Each portfolio has a unique allocation. You can find out more here.

Which cryptocurrencies are included in the portfolios?
Coinpanion offers risk and theme-based portfolios. Depending on the portfolio you choose, other cryptocurrencies are included. Learn more about it here.

Coinpanion offers risk and theme-based portfolios. Depending on the portfolio you choose, other cryptocurrencies are included. Learn more about it here.

How is the trading of the portfolios handled?
The cryptocurrencies are traded according to the portfolio's underlying strategy. You can also adjust this via the settings. All cryptocurrencies are traded via third-party providers. You can find more information in the terms and conditions.

The cryptocurrencies are traded according to the portfolio's underlying strategy. You can also adjust this via the settings. All cryptocurrencies are traded via third-party providers. You can find more information in the terms and conditions.

Can I invest in more than one Portfolio?
Yes, you can invest in multiple portfolios at the same time.

Yes, you can invest in multiple portfolios at the same time.

How can I take care of the taxation?
Generally, taxation depends on the legal situation in your country. Coinpanion gives you the possibility to download all transactions directly on the platform. In addition, we have a partnership with the cryptocurrency tax company Blockpit. Through them, we can offer you a complete tax report. In cooperation with Blockpit, Coinpanion offers you a complete tax report free of charge for download.

Generally, taxation depends on the legal situation in your country. Coinpanion gives you the possibility to download all transactions directly on the platform. In addition, we have a partnership with the cryptocurrency tax company Blockpit. Through them, we can offer you a complete tax report. In cooperation with Blockpit, Coinpanion offers you a complete tax report free of charge for download.