New ‘DeFi Roboadvisor’ SW DAO Will Launch on Ethereum Mainnet on December 1st

SW DAO, best described as a DeFi Roboadvisor, is going live on Wednesday, December 1st. The investing platform combines the skills of quantitative analysts with advanced machine-learning artificial intelligence to achieve maximum returns based on the opportunities present in the market.

Actively investing and trading crypto-assets with the goal of achieving maximum profits given market opportunities is a daunting task even for seasoned crypto investors, let alone non-crypto natives. Regardless of someone’s skills or experience, the industry is simply developing at a rate that is too rapid for any one person to keep up with.

Most people, whether they are crypto-native or not, simply do not have the time to scout, identify, research, and deploy funds to all of the best new DeFi protocols or to take advantage of price action on the top crypto assets.

The DAO will offer a wide range of DeFi investment products and all of them will revolve around analysis from some of the top quantitative analysts (quants) in the industry, who will make use of AI, specifically advanced Machine Learning algorithms to achieve a high return for investors.

Products Breakdown

The new one stop shop for DeFi investing offers a diverse umbrella of products for investors to choose from. SW DAO will offer three products when it launches next Wednesday, and each product is tokenized, meaning all investors need to do to participate is buy and hold the token of their choice and let the quant managed AI do the work. The SWD token can be purchased now at swdao.org and the other tokens will be made available for sale as their associated products go live.

First and foremost on the list of products is the Long-Short Alpha Portfolio which is based on their Machine Learning system. The system continuously analyzes thousands of data streams and intelligently allocates capital to assets when it sees patterns and correlations in the data. The Long-Short Alpha Portfolio is the SW DAO’s flagship product and has historically outperformed Bitcoin and Ethereum. As its name implies, the Portfolio is designed to produce returns regardless of any bearish or bullish trends in the market by going long or short as needed. Most of SW DAO’s users will find everything they need in the Long-Short Alpha Portfolio.

Also highly touted as a powerful product, the SW Yield Fund intelligently analyzes the plethora of DeFi yield farms that exist in crypto today and intelligently allocates across them to mitigate risk while taking full advantage of the interest payments they generate and minimizing the investor’s exposure to impermanent loss. The SW Yield Fund seeks a target return of 60%-80% per annum.

The third of three products that will go live as part of SW DAO’s inaugural suite of products is the DPI/ETH Momentum Index. The DeFi Pulse Index is a tokenized index that tracks the value of the top DeFi assets across the cryptocurrency landscape. This index is a great tool for investors as it makes it easier to gain exposure to all of the top performing DeFi assets without needing to become intimately familiar with the DeFi landscape.

Unfortunately, ETH has outperformed DPI over long stretches since DPI’s inception, with the exception of a few short stretches where DPI significantly outperformed ETH. The DPI/ETH Momentum Index solves this for users by actively rebalancing the portfolio between the two assets depending on market conditions. In other words, you won’t be holding any DPI until you are – and you’ll be rotated into it at just the right moment. Over a testing period lasting from September of 2020 to October of 2021, SW DAO’s Momentum Index outperformed ETH by 17%.

As previously stated, all of these portfolios are tokenized. The Long-Short Alpha Portfolio is correlated with the SWD token, while the Yield Farm Fund will be tracked by the SWDYF token and the Momentum Index will be tied to a token called DMI. Investors can purchase these tokens on the SW DAO platform. Funds received from token purchases are then placed into the aggregated pool associated with the specific asset that was purchased (each token has an associated capital pool). The token trading price then reflects the performance of the underlying assets invested by SW DAO’s quants.

Moving forward, the SW DAO has its sights set on releasing more products to complement the inaugural class of pools it will offer when it goes live on Wednesday. A ‘Buy The Dip’ strategy as well as a pool that will give investors exposure to AI optimized options and derivatives strategies are anticipated as the next logical product releases for the SW DAO.

SWD Dividends

Holders of SWD receive a share of all SW DAO profits, which are generated mostly from trading fees and are separate from the gains that are reflected by a rising SWD token price. The trading fees and portfolio management fees in the SW DAO ecosystem are allocated to the SW DAO Treasury, which is invested and actively managed by quants just like any other SW DAO product.

50% of all capital gains from the treasury fund will be allocated to the SW DAO dividend fund, which will be distributed to SWD token holders. To receive the dividend payout, a user must hold at least 100 SWD tokens, have participated in 50% of all governance votes, and must have held SWD for at least 30 days. For every month SWD is held, a 0.1% multiplier will be added to a holder’s share of the dividend pool.

Token Distribution Information

SW DAO Token distribution is already complete. 49% of the token supply was deposited into a community treasury, 24% was reserved for the project team, 10% was sold in a private sale, while 6% was released as part of a liquidity mining incentive program, another 6% was airdropped to the SW DAO Discord community, and 5% was made available in a community sale.

The exact details on the token distribution and how all of the airdrops and token sales were conducted and how their vesting schedules are structured is available in the SW DAO Documentation.

DAO Governance

The SWD token will be used as a governance token and will enable the community to own and govern the DAO and the products it offers. The community will use a forum to discuss potential changes to the ecosystem including the addition of products, management of the community treasury, updating fee configurations, and more.

To understand the specific details of the governance process please visit the SW DAO documentation.

Connect with SW DAO

Sign up for alerts: https://waitlist.swdao.org

Twitter: https://twitter.com/SW__DAO?s=20

Medium: https://medium.com/sw-dao

Discord: https://discord.com/invite/Wt3NcfJ2Em

Editorial Note: This is a sponsored article. Opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on information presented in this article.