Correction (July 2, 03:00 UTC): An earlier version of this article misstated the timing of the Compound portfolio launch. Techemy plans to roll it out next week, and the yield farming feature is to come later in the year; neither is available yet. The article has also been updated to include additional details.
New Zealand-based investment firm Techemy Capital is preparing to launch a Compound investment portfolio, which would be comprised of proxies of stablecoins dai and USDC.
- The product, slated for launch next week, would allow holders to earn interest on decentralized lender Compound and, eventually, gain exposure to "yield farming."
- The portfolio would begin to "yield farm" – borrow against itself to release free COMP tokens on users' behalf, later this year
- Yield farming has turned into such a feeding frenzy that Compound changed the distribution model Tuesday to stop traders from gaming the system.
- At press time, COMP tokens traded at $214 after peaking at $350 just over a week ago, according to CoinGecko.
- All three portfolios are built on Ethereum and are self-custodial, only available to accredited investors.
- Fran Strajnar, Techemy Capital's executive chairman, told CoinDesk: "These initial products can maybe be viewed as a 'mini ETF' for now."
- Techemy's proprietary trading desk will actively manage the bitcoin and ether portfolios.
- Strajnar said Techemy was working with Japanese banks and asset managers to roll out a fully-fledged ETFs sometime in Q1 2021.
- Nexus Mutual is offering optional insurance against smart contract failure to investors in the portfolios, which are hosted on the TokenSets platform.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.