DeFi Investment Strategy
Decentralised finance, otherwise known as DeFi, is an ensemble of financial products and services backed by decentralised networks and open protocols. The implications of DeFi will be pronounced across both developed and emerging markets.
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In developed markets, DeFi will become the new frontier for opportunity, equality and autonomy. It will help consumers benefit from greater liquidity across a wide-range of financial assets and allow them to tap into global capital market innovations, while still maintaining safety and security.
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In emerging markets, DeFi will help a large volume of underbanked and unbanked consumers to "become their own bank." This will enable the masses to securely benefit from affordable peer-to-peer value transfers, and mainstream financial services hitherto inaccessible for this large segment of the population. DeFi will help to democratise access and broaden the opportunity set available for consumers globally.
Our THESIS
At Zilliqa Capital, we believe that DeFi is rapidly becoming an intrinsic element of our digital world. Decentralised products and services will usher in a more durable and commercially competitive era in blockchain technology adoption and will play a critical role in reducing socio-economic disparities by creating open and innovative markets. We aim to foster these projects and help them become viable contributors to the global financial fabric.
DeFi Products and Services Space
Payments and Lending
Enable cost-efficient transfers of digital currencies and disintermediated loans with a wide range of collaterals.
Wealth and Asset Management
Institutional-grade investment and custody solutions as well as non-custodial wealth management for best returns.
Capital Markets
Tokenised capital markets and derivative products with near-instant payment upon delivery to create a trustless market.
Insurance
Insurance products for digital assets and products enabling protection against emerging technological risks.
Investable Themes
Building a parallel financial system that will make money, payments and other financial services universally accessible.
Payments and Remittances
Digital currencies will reduce cost and time for both local and cross-border payments and settlements. This includes fiat-backed stablecoins as well as collateralised stablecoins. These digital currencies are bound to find their way into remittances, particularly in ASEAN and India.
Lending
Disintermediated peer-to-peer secured loans with digital collateral or securitised physical collateral. For unsecured loans, a new decentralised credit network will need to be built driven by the community.
Banking
Neo-banks built on crypto rails providing easy access in and out of crypto-assets. Crypto banks will provide a range of crypto-backed investment, lending and derivative products.
Institutional Custody
Institutional-grade custody relying on cutting-edge cryptographic capabilities such as multi-party computation and threshold cryptography for secure management of assets.
Identity, Privacy, and Data
Web 3.0 applications have removed the need for passwords and have replaced them with cryptographic keys. Keys pseudonymously identify users and their data. We expect to see stronger and better applications
develop over time, as user
engagement deepens and privacy concerns continue to be addressed.
develop over time, as user
engagement deepens and privacy concerns continue to be addressed.
Asset Management
A wide range of digital assets will need to be created and managed both for retail, as well as institutional clients and investors.
Asset Tokenisation
Asset tokenisation facilitates
exposure in innovative ways to investment opportunities that previously were only available for Ultra High Net Wealth and Institutional Investors.
Today, physical assets such as real estate, art and whiskey are being tokenised, in addition to traditional investable assets such as private equities, commodities, bonds, etc.
exposure in innovative ways to investment opportunities that previously were only available for Ultra High Net Wealth and Institutional Investors.
Today, physical assets such as real estate, art and whiskey are being tokenised, in addition to traditional investable assets such as private equities, commodities, bonds, etc.
Asset Exchange
In the near future, it is likely that most physical assets or investments will have a digital representation that can be easily traded or monetised.
This will lead to open decentralised marketplaces to allow trading of security tokens, utility tokens, securitised assets, commodities and synthetic assets and their derivatives.
This will lead to open decentralised marketplaces to allow trading of security tokens, utility tokens, securitised assets, commodities and synthetic assets and their derivatives.
Prediction Markets
Prediction markets are event-driven exchange-traded markets for retail customers. Beyond speculation on the outcome of events, they also allow users to hedge risks and collect valuable information about events that may occur in the future.
Derivatives
Decentralised exchanges for derivative products, such as futures and options, will help institutional investors with risk management, as futures and options can limit possible downside exposure in crypto-asset trading.
Insurance
The decentralised economy comes with new technological risks unlike the traditional financial market. These technological risks require customised digital asset insurance products.
Gaming and NFTs
NFTs ("Non-Fungible Tokens"), are used to represent digital art, in-game assets for Gaming and rare collectibles. Future NFT products have the potentiality to be backed by commodities such as gold and interest-bearing bonds, and to be easily tradeable, as well.
Investment Highlights
Our Competitive Advantage
Experienced Board & Management Team
Led by experienced individuals from both the finance/investment and technology/blockchain sectors. This will provide a 360-degree perspective.
Unique Approach to Investing in DeFi
We believe that DeFi and OpFi will take a unique form in the under-banked markets of ASEAN and India. Tailored products will be developed to meet market needs. We will be pragmatic, not dogmatic, when pursuing profit generating investment opportunities across the Zilliqa ecosystem and beyond.
Attractive Access to Opportunities
Combination of experienced and well-connected directors and advisors will provide unique deal flow and access to global investment opportunities.
Piggybacking on Zilliqa Platform
Zilliqa Capital will tap into Zilliqa's growing ecosystem to source projects that have already shown potential for success or have found the product-market fit.
Investment Process
Potential investments will follow a robust diligence and approval process
Potential investments will follow a robust diligence and approval process
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Investment Sourcing
Opportunities are sourced through a variety of channels
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Investment Analysis
Fundamental evaluation of both the business and technical aspects
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Management Review
Management will review and negotiate opportunities and report on progress to Investment Committee/Board
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Investment Committee Review
Committee members will consult regularly on opportunities and meet to review investments
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Board Approval
Board approval will be required before any investment is made
