The detailed explanation of Turtle Finance strategy.
Defi world financial innovation applications are inherently combinable, and organizations and individuals with decentralized financial innovation capabilities are actively applying this combinability to create better investment tools. Every time the combination of Defi components is even just a small optimization at the technical level, a "strategy" may be formed. Normally, this "strategy" will appear as a rookie DAPP. Turtle's goal is to become an open platform for carrying investment strategies. This platform can serve encrypted asset investors like ordinary Defi applications. The difference is that the investment strategy here is more flexible and changeable. At the same time, the Turtle Finance platform is also the best partner for strategy builders who do not have the ability to develop blockchain to actually implement their strategies.
The Turtle Finance strategy R&D team abstracts the Defi investment strategy into different types of elements. These elements are tools for the strategy team to split the strategy, enabling the team to perform a quantitative analysis of an investment strategy. The abstraction of strategy elements is also the support of Turtle's technical architecture. Each element corresponds to the componentized code function, which realizes the standardized docking of technical components when developing different strategies. The reuse of technical components makes it possible for the Turtle Finance platform to launch a new strategy in a short period of time. The strategic elements are gradually expanded following the development of the strategy. The existing strategic elements include:
Transactional elements usually seek investment profits in the time dimension in the context of market price fluctuations. A simple implementation can be "sell high and buy low".
Arbitrage-type elements require the Turtle Finance platform to constantly open up markets that can be used to seek dislocation, which can be between different DEXs on the same chain, different chains, or even between a centralized market and a decentralized market.
Mining profitability is built on the two pillars of the Defi world, the borrowing pool, and the liquidity pool. Maintaining sensitivity to high-yield veins is the most important characteristic of mining-type elements.
A good investment strategy is not only the pursuit of high returns but also the ability to control risk. Risk-control elements are used to reasonably offset the risk in the strategy, simple, such as automatic stop loss, and complex hedging on schedule, are all available means for risk control elements.
Investment strategies are diverse, and the combination of strategic elements is also a matter of opinion. In terms of the combination of elements, the Turtle Finance strategy team gives the general collocation as a reference: mining elements can provide low-frequency capital strategies to protect low returns; high-risk strategies should be paired with appropriate risk-controlled elements to ensure the safety of investor funds.
Turtle Finance is an open platform for financial investment strategies. In principle, it does not exclude or discriminate against any strategy, and the team hopes to build a completely autonomous platform with the ideal of decentralization. However, Turtle Finance is still a long way from the ideal stage, there are still many methodologies that need to be established, and many technical difficulties need to be overcome. At present, the selection of strategies by Turtle Finance needs to go through the following steps:
Collect investment strategy cooperation intentions from partners, community members, and broader channels.
The Turtle Finance strategy team splits the strategy and aligns it from different dimensions to make preliminary judgments.
Communicate with the technical team about the upcoming contract strategy and clarify the possibility of realization.
From the two aspects of strategy and technology scoring, qualified strategies can enter technology research and development after technology research and development is the trial operation.
After the technology research and development is completed, it will be launched on the Turtle Finance platform to conduct regular and quantitative online data verification with an "experimental strategy."
Quantitatively analyze the data in the trial operation phase to verify whether the overall strategy has achieved the expected effect.
According to the quantitative assessment to determine whether the strategy is officially listed, after the strategy is officially listed, the strategy provider can automatically get a profit according to the cooperation agreement.