Shifting Tides 🌊 🏄♂️
Money is rapidly moving towards decentralization, providing financial products anchored to software that are delivered in a trustless manner, borderlessly empowering individuals instead of states or institutions. These tides of change will only get stronger with the advancement of blockchains like Ethereum that enable smart contract powered decentralized finance (DeFi) applications.
Since 2018, there have been huge developments in DeFi across exchange venues (e.g. Uniswap, Sushiswap, Curve, Balancer), lending protocols (e.g. Compound, Aave), asset issuance (e.g. MakerDAO, wBTC) and management (e.g. Enzyme, dHedge, Set protocol). These early waves of DeFi innovation paved the way for new financial instruments like insurance (e.g. Nexus Mutual, Unslashed.Finance) and derivatives (e.g. Hegic, Opyn).
With DeFi’s exponential growth, we begin to question how we can empower individuals to systematically and strategically earn high returns across market cycles. The answer? Applications of quant trading that can continuously stay ahead of market conditions and operate across different DeFi protocols.
At Exponent, we are building the largest collective of sophisticated DeFi quant traders and developers to capture alphas together.
Quant ❤️ DeFi
Over the last century, quant trading has dominated the traditional finance trading world. In the U.S. stock market and many other developed financial markets, about 70–80 percent of overall trading volume is generated through algorithmic trading. Further research indicates that actively managed portfolios tend to outperform passively managed ones, especially during bear markets.
Quants and DeFi are a match made in heaven. The crypto market has all the conditions that allow quants to thrive, including:
1. Continuous 24/7/365 markets
2. Huge amount of real-time, publicly accessible financial data
3. Large price movements and volatility
This leads to exponential 😉 opportunities to create significant alphas in a nascent market.
Exponent — The DeFi Quant Collective 🔢
Exponent is enabling the next evolution of Defi. Our vision is to democratize access to sophisticated quant crypto trading strategies, making it simple to capture returns across both 🐂 and 🐻 markets. This is a generational opportunity. What was once only available to a very selective crowd, will now be available for everyone. 🐋🐳🦈🐬🦐🐠🦧🐙
Exponent enables quant traders to curate, test, and deploy alpha strategies in DeFi. Quant strategies can add efficiency to yield farming and offer new strategies to grow your idle capital, pushing DeFi towards greater capital efficiency and long-term allocation, ultimately growing the pie!
Over the next few weeks, we’ll be sharing more details about the Exponent platform, quant strategies, and our roadmap. We envision Exponent to be a community-owned platform, and we can’t do this by ourselves. So…
- If you are a DeFi investor and would like to get early product access to help test and provide feedback, sign up here.
- If you are working on a DeFi protocol or crypto quant trading, and want to collaborate, we would love to hear from you here (firstname.lastname@example.org)!
- If you are a Web3 builder, and want to contribute to the development of Exponent and grow our community, please reach out here (email@example.com)!