Having captured a staggering $7.7 trillion dollars of the $80 trillion tied up in global trading markets, Exchange Traded Funds (ETFs) are a certified cornerstone of traditional finance. Even so, it’s easy to forget that ETFs are a relatively new invention, having only been created three decades ago with the rise of Web 1.0. Their explosive rise to prominence is a testament to their value proposition: By offering simultaneous access to multiple assets within a particular category, ETFs allow investors to trade in market sectors instead of individual projects. This lowers trading fees, portfolio volatility, and overall risk.
Although these benefits are established in traditional finance, we know that they will prove absolutely paradigm shifting in the crypto sphere, which is marked by the exact same challenges (high trading fees, high volatility, and high project risk) but on a much larger scale.
By freeing traditional ETFs from the constraints of centralized infrastructure, Plethori is positioned to establish itself as cryptocurrency’s premier ETF creation and trading platform. Utilizing blockchain technology and layer 2 solutions, the platform offers decentralized cross-chain investment for trustless ETFs built on the Ethereum and Polkadot blockchains.
While the platform will grow and expand through successive updates, Plethori’s V1 platform, slated for release by the end of Q2, will provide a variety of ETFs, each made up of a curated portfolio of tokens from different cryptocurrency sectors, for example — NFTs, Polkadot projects, layer 2s, insurance projects, oracles, high market caps, low market caps, etc. To enjoy the benefits of the platform, users need only connect their wallet and hold PLE. After connecting, investors will be able to place market orders and limit orders; view their portfolio; check out their P&L and trade history; and follow all of their favorite ETFs closely, enjoying the full range of available statistical data for each.
Secondary to the exchange and facilitated diversification, users can expect to enjoy substantially lower trading fees. Rather than paying 10 transaction fees (for example) to purchase 10 different tokens, Plethori’s ETFs will allow investors to purchase all 10 different tokens for just 1 transaction fee. With this next step in crypto innovation, traders have a lot to be excited about: Namely no longer having to forfeit large sums of their capital to the infinite chasm that is miner fees.
Plethori V2 and Beyond
V1 is something of an appetizer, a taste of what’s to come in Q3 with Plethori’s Magnum Opus. For the first time in financial history, ETFs will realize their full potential via decentralized technology. Not only will users be able to trade ETFs, but they will also be able to create them as fund managers. V2 will provide creators with passive income via trading fees and also introduce gamification through leaderboards and rewards, with NFTs playing a pivotal role. The better an ETF performs, the higher up its fund manager will rank and the more likely other users will be to purchase their ETF.
Beyond V2, decentralization offers near limitless opportunity for continued financial innovation. With tokenized assets, the team plans to roll out future updates that will render traditional ETF markets obsolete. As the boundaries between CeFi and DeFi blur, Plethori will usher in a future in which institutional gatekeepers and bureaucratic limitations are but a remnant of Web 2.0. (Maybe you guys don’t want to announce this yet.)
Financial empowerment is at the core of Plethori’s platform. Not only will investors be able to trade and create funds, but by holding the token and actively participating in the platform, the community will directly influence the development and advancement of the project.
Plethori’s goal is to foster a genuine community in which dedicated members, organized by tiers, will be able to coordinate with one another as they plan and propose changes to the ecosystem. There will be a weighting system in place to ensure that voting power is dependent upon level of involvement within the ecosystem, and not based merely on holding a large quantity of tokens.
Thirty years after their inception, it is finally time for ETFs to take their next leap forward by embracing the liberating effect of blockchain technology. For the first time ever, Plethori will empower investors with tools previously enjoyed exclusively by centralized institutions so that the individual can finally take control of their investment strategy. The team has much in store, and is thrilled to deliver on their promises. As development ramps up to the impending launch of the V1 platform, Plethori officially welcomes all to join in the creation of a freer financial future.