CoinMarketCap takes a deep dive into a new project that is looking to improve access to ETFs.
Investing in crypto and DeFi can be overwhelming and costly. With high volatility and high transaction fees, creating a balanced portfolio of assets seems to be reserved for those with experience and high net-worth.
What Is Hord (HORD)?
By offering a range of tokenized solutions for crypto investors of every kind, Hord hopes to provide a first-of-its-kind social DeFi platform. Hord’s champion concept makes for a potentially useful proposition for both experienced and inexperienced traders — since it takes much of the effort out of identifying and executing profitable trading opportunities.
The platform currently has over 30 champions signed up, including a range of KOLs, investment firms and well-known traders. These champions offer less experienced traders a way to profit from the knowledge and experience of more seasoned players.In addition to these actively managed ETFs, Hord offers a number of passive, index-based ETFs, like DeFi Pulse, for example. These tokenized indices can be traded and redeemed for their underlying value in ETH at any time.
How Does Hord Work?
As allocation to these pools is limited, users can farm champion NFT tickets to ensure allocation to the champion’s hPool. These NFT tickets are ERC-1155 tokens and can be traded on platforms like OpenSea.
Once a pool is initiated and filled it will not be possible for new users to join in. Users that missed the boat can acquire tokens from other users that were able to secure an allocation. Trading of hPool tokens will happen on the Hord DEX, where HORD tokens are used for transaction fees — part of which will be burned to reduce the circulating supply.
What Makes Hord Unique?
Hord.app has a number of unique features that make it a potentially attractive solution for a variety of crypto investors, traders and enthusiasts. A few of them are highlighted here:
Hord does not limit itself to one type of ETF. Rather the platform will allow practically any type of ETF to be created, ranging from champion-led to DAO-governed to index-based. This feature is unique in the industry, helping Hord target a diverse user demographic.
Champion NFT tickets
By limiting the size of hPools, Hord ensures that incentives are aligned while creating utility for the token and volume for the DEX at the same time. This concept is unique to Hord.
The social aspect of pooled investing plays a big role on Hord.app. By being in the same boat as others and discussing strategies, users will be able to engage other users and investors, and may feel more comfortable with the volatility that crypto markets are known for.
Not just crypto
Though it will start out supporting crypto assets, Hord aims to eventually include all sorts of assets, like tokenized stocks and even things like real estate.
The HORD token sits at the heart of the Hord platform. This deflationary asset will comprise at least 1% of every champion hPool. The token will also be staked to gain priority access to pools, and vote for governance decisions that need to be made. As we previously touched on, all fees on the platform can be paid in HORD, a chunk of which will be permanently burned.
What Are ETFs?
Exchange traded funds (ETFs) are a type of exchange traded asset that enable investors to gain exposure to a basket of assets using a single investment product. These are typically used for securities like stocks and bonds, but are becoming increasingly popular as vehicles for baskets of crypto assets.
ETFs are extremely popular in the traditional financial world, with a large fraction of all stocks being inside an ETF. If this trend continues in crypto, the market potential for Hord could be significant.
Hord looks to leverage these benefits to create a platform that both experienced and inexperienced investors can use to gain access to diverse crypto funds, managed by a range of vetted champions.