What is Nous? - Quick Read
A brief rundown of Nous' on-chain hedge fund project
The Problem
Today's blockchain boom has brought us to the edge of an era defined by digital assets, but inexperience and extreme price fluctuation continues to deprive the everyday crypto-trader of tractable profits. Making accurate predictions remains a persistent challenge - as does trusting those who claim to be able to do so - and more neutral strategies like arbitrage require specialist knowledge and resources which aren’t typically available to the average user. Many retail investors feel over-exposed to volatility and risk, all-the-while longing for the kind of automated wealth management solutions which have become mainstays in the TradFi world. The result? Thousands of under-equipped investors making high risk plays in a fluctuating market, and sorely losing out in the process.
The Solution
At Nous, we're taking the best infrastructure that TradFi has to offer - namely, the hedge fund model of asset management - and rolling it out on the blockchain. In the simplest of terms, this means we help you make sound investments by designing on-chain tech to manage your funds on your behalf. For today's investors, this means four key changes in the way that digital finance is done:
📈 Access to high-end market strategy. Sophisticated financial systems like arbitrage trading require extensive manpower and an elaborate technical backend to boot. One of the great advantages offered by models like these is market neutrality; they resist price fluctuations and offer consistent returns regardless of volatility. Though highly effective, they are naturally reserved for a very small number of high-net-worth individuals. By making our service as accessible as possible, Nous are able to offer services like these at a nominal rate. In the same vein, our pool of top industry talent allows us to support our investors with extensive financial data - mitigating risk and maximizing returns.
🤖 Fully automated wealth management. Let's face it, managing your portfolio is a headache. At Nous, we don't just produce market insights, we realize them with a decentralized management system; autonomous nodes courtesy of Chainlink monitor contracts minted on our platform and manage user funds automatically and in line with our financial data. Once your contract is minted, funds are taken and returned without the need for human intervention - you can quite literally make a profit without lifting a finger!
🔒 Low risk, high security. Anxiety around asset management solutions is warranted - that's why we use smart contracts. Smart contracts are programs on the blockchain designed to execute predefined terms and conditions at a fixed time. They are decentralized - meaning they exist in their own right and cannot be influenced by third parties - and transparent, meaning investors can see exactly how their funds are being managed in real time. By the guarantee of smart contracts, users can rest assured that accounts are not being mismanaged, and that profits will be returned according to a fixed schedule.
⚡ A new place for NFTs: At Nous, our method of contract management is modeled after NFTs, or as we say at Nous, 'NFCs' (Non-Fungible Contracts); once an investment is made, the smart contract which executes transactions doubles as a token for tracking funds and cashing in at contract end. In this sense, users get to 'own' their financial contracts in the same way one owns any other NFT, keeping the whole process simple and secure.
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