Today we would like to introduce a very new project, that unrolled in the field of decentralized finance. We’re talking about the DeFi project PEAKDEFI. The platform has launched in December 2020 and offers a unique product, that we think is worth taking a deeper look into. Following we would like to show you the companies introduction video:
“PEAKDEFI’s vision is to enable everyone in the world to grow their wealth, no matter what position they are in.
We want to provide a decentralized investment gateway that is easy to use and accessible to millions of people to shape their future. That is the mission of PEAKDEFI.”
As you can see, the Peak DeFi platform aims to create a novel and unique platform in the investment space.
On the platform investors can go into two different products, that – thanks to a high APY (annual percentage yield) – makes it possible for higher risk investors to easily generate a passive income. Users have the possibility to invest in two different projects: On the one hand, you have the opportunity to invest in a decentralized trading hedge fund regulated by smart contracts. In addition, you can deposit the in-house PEAKDEFI tokens – so called staking – and get rewards in the form of Tokens.
You said higher risk investors – how risky is an investment on PEAKDEFI?
First of all, one must say, that every investment in the cryptocurrency space is categorized as higher risk investment due to high volatility of the market. Now let’s look at Peak DeFi:
First of all, if the whole field of decentralized finance is new for you, it is worth taking a deeper look on what is behind this new investment field. We have written an article for you in which we explain what DeFi in general is. You can find it here.
So, as you could see, especially in the DeFi space personal responsibility is very important. Always keep your private keys to yourself.
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If you check the PEAK DeFi website, you can see that the Smart Contract has been audited and secured by QuantStamp. The developers of the platform have placed great emphasis on security. Quantstamp, one of the best smart contract security companies, has audited and reviewed the Smart Contract to ensure the security of the PEAKDEFI fund and the staking process.
The Peak DeFi platform was created for investors and asset managers to come together on the decentralized platform. It is connected with other decentralized protocols – like 1inch, kybernetwork, compound and uniswap – that are well known players in the world of decentralized finance.
Furthermore Gitbook and Whitepaper of the PEAKDEFI Project are connected to the website and viewable for everyone. The developers of the PEAK DeFi platform were particularly concerned about the transparency factor for the community.
That is why they created a decentralized platform that is collectively managed by the community. Many problems and shortcomings of traditional asset management funds can be solved this way and a completely new and innovative way is created.
So now let’s have a look at the two products:
The PEAKDEFI Global Fund
The idea the investment fund is basically to pool your money with other investors’ money and invest it in a portfolio of different assets. Fund managers invest and trade with different products, so you yourself don’t need detailed trading knowledge. The PEAKDEFI hedgefund was created to bring investors and asset managers together on one platform for shared capital growth.
Why is the PEAK DeFi Fund so special?
What makes the PEAKDEFI Global Fund so unique is, that it is a performance-oriented asset management fund. That is why we like to call it a “learning product”. It is managed in a decentralized way by different managers to achieve the best result for all parties. This results in a win-win situation for both investor and fund manager.
Source: Peakdefi Gitbook
It is governed by a smart contract, which is programmed on the Ethereum Blockchain. Investing in PEAKDEFI Funds is simple and straightforward. Any investor can simply connect to the platform with their own ETH wallet.
Once connected to the platform with your wallet, you as Investor can very easily purchase shares of the Peak DeFi Hedgefund with just a few clicks. Fund shares are payable with Ethereum or more than 70 other ERC20 tokens. Fund managers on the other hand are given the opportunity to participate in on-chain trading with parts of the fund and share in the profits generated.
PEAKDEFI Fund is decentralized – but what does that mean exactly?
One of the core benefits of being in the field of DeFi is that you’re always in control of your own capital. But how does that work? All deposits that you invest in the PEAK DeFi Fund are locked in smart contracts. This means, that you don’t have to send your money to another bank account and so you don’t have to entrust your money directly to another person. No third party has direct access to your money and also the PEAKDEFI platform has no power of disposal at any time. No one can therefore ever take control of your deposited assets. The invested capital can be used directly from your wallet, which only you control.
What does performance-based mean?
As mentioned before, we like to call the PEAKDEFI Fund a “learning product”.
Since the PEAKDEFI Fund is open to all, in principle anyone can become an asset manager. You might have the concern, that unexperienced traders will “burn” the money. However, there are of course mechanisms to avoid losses for the fund. In the Peak DeFi Fund, the distribution to the various managers adjusts itself and is automatically optimized between the best performers through smart contracts.
In concrete terms, this means that traders who achieve good results gain reputation over time and thus get a larger share of the fund to manage. In return, fund managers who perform poorly or are inactive gradually lose the shares they are allowed to manage from the fund. This ensures that better managers get a larger share, but the risk is still diversified.
This gives you the advantage, that you don’t have to take care of the right selection of asset manager and you don’t have to entrust your money to a single person. Through mechanisms of the smart contract the PEAK DeFi Fund learns to achieve optimal results.
How are the traders selected for the PEAK DeFi Fund?
In principle, anyone can become a trader in the PEAK DeFi Fund. But, as mentioned before, there are mechanisms to avoid losses.
To become an asset manager, one must initially purchase so-called Reputation Tokens. Each new trader is allocated the same number and thus the same initial share of the fund – AUM (Assets under Management). Each trader can acquire these Reputation Tokens only once. Additional Reputation Tokens and thus larger shares of the fund can only be earned through good trading results. Traders, that don’t perform well, will quickly lose their reputation (Reputation Tokens) and consequently will have less or no AUMs.
For good traders, there are several incentives to become an asset manager. One of the most attractive benefits is, of course, profit sharing. About 15% of the total profit of the PEAKDEFI fund goes to the managers.
New as well as experienced traders, are given a chance to prove themselves through the PEAK DeFi Hedgefund. The customer acquisition for the managers is therefore omitted. It is not the sales talent that counts here, but only the performance that you provide as a trader.
How long is my capital tied up?
Flexibility is one of the most valuable treasures. To give investors more flexibility, there is a fixed management period of only 57 days. This is followed by a three-day transition period, during which investors can sell their shares. During the first 57 days, the asset managers can participate in on-chain trading with their units to generate profits for the mutual fund. During this time, investors can invest in the PEAK DeFi Fund, but the profits and fund shares can be paid out during the 3-day payout period. During these days no trades will take place. After these 3 days the next cycle starts.
Profits made in a cycle are automatically divided between investors, fund managers and recommenders by the smart contract:
65% of the profits goes directly to the investors,
15% of the profit goes to the fund managers and
20% of the profit goes to the affiliates.
Source: Peakdefi Gitbook
What is PEAK Staking?
Let’s talk about the second possibility to generate a passive income on the PEAK DeFi platform: PEAK Staking. But what is Staking anyway?
In very simplified terms, “staking” means that tokens are blocked for a certain period of time and for a certain purpose. During the previously defined staking period, the tokens cannot be sold. By “locking” the PEAKDEFI tokens on the PEAK DeFi platform, one helps to reduce the supply currently circulating in the market and stabilize the PEAKDEFI price. This means,m through staking, you provide security and stability to the network and will be rewarded for this in the form of PEAKDEFI Tokens. 50% of the total Token supply is reserved for staking rewards.
The amount of Staking depends on 3 parameters: The number of PEAKDEFI tokens one stakes, the period of time for which PEAKDEFI tokens are staked, and the phase in which one starts staking. To put it simply, the more, the earlier and the longer you are willing to stake your tokens, the higher the staking rewards will be.
Source: Peakdefi Gitbook
Depending on you choosen parameters, you can earn up to 83% in PEAK Staking Rewards per year!
If you connect to the PEAK DeFi platform via this link, you will even get an extra 3 percent bonus on your Staking Rewards.
The amount of PEAK stake (s) can be 10 – 1,000,000 PEAK. You can stake the Peak Tokens for a period of 10 to 1,000 days.
3 steps to become a PEAKDEFI investor
How does investing in PEAKDEFI work? We often hear from people, who are not familiar with the cryptocurrency field, that they bet, buying digital assets is complicated. These people miss the opportunity due to technical barriers. But we can reassure you, investing in cryptocurrencies and also in the PEAKDEFI Global Fund is easier than you might think. In 3 simple steps you can become a crypto investor and benefit from the PEAKDEFI platform.
1. You need an Ethereum Wallet
In a so-called crypto-wallet you can store your cryptocurrencies.
For the PEAKDEFI Fund you can basically use any wallet on which you can store ERC-20 tokens, which are tokens of the Ethereum blockchain. If you are new to crypto, you will probably have a hard time deciding which wallet to use.
You can either use hardware wallet like e.g. the provider Ledger* offers. This is a very safe solution, that we use to store bigger amounts of cryptocurrencies. But there are also free wallets:
Probably the most well-known decentralized wallet is Metamask. PEAKDEFI also has an in-house wallet app. It is an all-in-one decentralized solution. Here you can hold ERC-20, exchange with each other and even buy cryptocurrencies with credit or Maestro card easily directly in the app. For this purpose, the PEAKDEFI app works together with the payment provider MoonPay, which is known for its good conditions.
2. Buy cryptocurrencies
If you use the PEAKDEFI wallet, you can buy ERC-20 tokens directly via the “Buy” button. For amounts over 120 euros per month, you must have your ID card ready here to verify yourself once. This is common on all crypto exchanges. Of course, you can also buy cryptocurrencies on other exchanges (such as Crypto.com or Binance).
3. Start investing
Once you have a wallet and ERC-20 tokens you can start investing.
Go to the platform and choose whether you want to invest in the Fund or stake PEAKDEFI tokens. You can then connect your wallet to the platform. For the PEAKDEFI wallet, this is done via WalletConnect. To do this, you can scan the QR code (go to “connect” and then select “WalletConnect”) on the platform with your app. Now you are already connected to the platform with your wallet.
On the Portfolio tab you can invest in the PEAK DeFi Global Fund. The PEAKDEFI Fund is based on the stablecoin USDC. The cheapest option is to invest directly in USDC if you already got them. However, more than 70 other tokens are accepted for deposit, these are then first exchanged into USDC and thus the number of fund shares is calculated.
If you prefer PEAKDEFI token staking, you can do that under the menu item “Rewards”. You can then simply select the period and the number of PEAKDEFI tokens you want to stake.
Attention: Transactions on the Ethereum Blockchain always incur a transaction fee, the so-called gas price. Make sure that you have Ethereum on your wallet in addition to the token from which you want to invest in the fund, in order to be able to pay these transaction fees. The fee can vary, depending on the utilization of the network.
As a small addition, you can also recommend the platform to your friends and get rewards. You can find your referral link in the menu item “Invite friends”.
There are interesting products in the sector of decentralized finance, whereas we think that PEAKDEFI provides a very unique product. As always, we advise you to make up your own mind about the platform. So just have a look around on PEAK DeFi. If you go to the platform via this link, you can even secure an additional 3% bonus on top of your annual staking return:
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Disclaimer: The content provided here does not represent investment advice or investment brokerage. The experience reports are no invitation to trade, but reflect only the opinion of the author. All statements on yields and price developments refer only to the past and are absolutely non-binding. In the event that users of the site make investments on the basis of experience reports, this is done entirely at their own risk.