Value proposition of Gain DAO: the pioneer of Hybrid Finance

Have you heard of the pioneer of Hybrid Finance already? Meet Gain DAO! Gain DAO is a crypto-based pool, currently starting out with Ether. It is powered by machine learning optimized trading algorithms that are operating in traditional financial markets. This way, Gain DAO serves as a bridge between centralized and decentralized financial systems, leveraging their strengths to create something new: Hybrid Finance. As a GAIN token holder, you benefit from the possible appreciation of the underlying base asset (Ether) and from algorithmic trading strategies intended to grow the amount of Ether in the Gain Pool.

In this article we will dive deeper into the value proposition of Gain DAO. What makes Gain DAO unique and worthwhile to invest in?

The power of Hybrid Finance

The blockchain ecosystem has started to deliver on its potential. Distributed ledgers fill in the gaps of the traditional financial systems. The Decentralized Finance (DeFi) boom points to a greater trend towards markets expanding. We envision that the markets of the future will be borderless and open to all, regardless of age, gender, ethnicity or socioeconomic background.

The influence of cryptocurrencies is steadily growing. Many participants in the decentralized ecosystem do not measure their wealth in dollars or euros, but in terms of their crypto holdings. Many of these same people would like to receive a return on their crypto holdings. This desire has fueled the growth of DeFi, with assets such as Ether enabling interest bearing tokens, such as Yearn or Compound. However, as the DeFi ecosystem matures, the return over investment for placing one’s Ether in such interest bearing tokens will likely diminish as the interest markets become more efficient.

Furthermore, while the decentralized economy is growing substantially, there are still some places where the infrastructure and its scalability are lacking. Compared to cryptocurrency markets, fiat currency markets such as Forex offer greater stability and liquidity. This greater stability and liquidity can be leveraged by automated trading algorithms. The success of such algorithms are dependent upon high amounts of liquidity, competitive exchange rates, and high-quality historical data. As most cryptocurrency markets lack these features, algorithmic trading tends to be more successful in traditional currency markets.

The possibilities of Gain DAO

Gain DAO allows any user of Ethereum to be able to participate in a collective effort to trade fiat currency by algorithm. As a community driven project, GAIN tokens also serve as a governance mechanism for Gain DAO, allowing the ecosystem to evolve through community voting and grant issuing. This ensures that Gain is able to create additional pools and maintain alignment between management and token holders.

In summary, Gain DAO recognizes the strengths and potential of both CeFi and DeFi. This makes the strategy of Gain DAO unique. HyFi offers the best of both worlds.