Arbitrum Derivatives Managed Pool - How to Invest in Crypto Derivatives on Arbitrum

Introduction

Derivatives are a key component of DeFi, offering ways to hedge risk and explore new investment strategies. Kassandra's Arbitrum Derivatives Pool is designed to give investors targeted exposure to the top-performing derivatives protocols operating on the Arbitrum network.

What is the Arbitrum Derivatives Pool?

The Arbitrum Derivatives Pool focuses on the leaders in the on-chain derivatives market on Arbitrum. It's not just about established players; the pool also includes undervalued assets with strong growth potential. The objective is straightforward: build a robust, diversified portfolio in the derivatives sector for our investors.

The derivatives market in DeFi has its own set of challenges, including high volatility and complex products. This pool takes the guesswork out of investing in derivatives by targeting protocols with proven resilience and innovation. By doing so, it aims to offer investors a way to capitalize on the opportunities in the derivatives market while mitigating associated risks.

Initial Token Allocation

The Arbitrum Derivatives Pool starts with a diverse selection of assets. Here's how the initial tokens are allocated:

• GMX: 55%
• LYRA: 14.2%
• GNS: 13%
• LVL: 6.8%
• VELA: 4.2%
• DPX: 6.6%

Token Allocations: A Dynamic Strategy

The pool doesn't stay static. Every month, token allocations are revised based on a set formula. The factors considered include market capitalization, Total Value Locked (TVL), and Open Interest for each protocol. Specifically, the formula for token allocation is the square root of (TVL/Mcap × Open Interest).

Criteria for Token Inclusion and Exclusion

Tokens make it into the pool based on their performance, utility, and security. They will be removed if they show severe vulnerabilities, a consistent decline in usage, or other drastic changes that could threaten the protocol's integrity.

Fee Structure

Let's talk numbers. Here are the fees you can expect:

• Management Fee: 2% annually
• Referral Fee: 0.2% per new investor
• Deposit Fee: 0.1% of the deposit value

Why Invest in the Arbitrum Derivatives Pool?

The Arbitrum Derivatives Pool provides a focused investment strategy in the growing derivatives market on Arbitrum. You get exposure to top-performing and promising protocols without the hassle of individually managing these assets. 

Ready to diversify your portfolio? Invest now to take advantage of this meticulously crafted strategy.

Conclusion

The Arbitrum Derivatives Pool is more than just another investment vehicle; it's part of Kassandra’s broader vision to simplify and optimize DeFi investing. 

With this pool, you're not just investing in derivatives; you're investing in a strategy designed to grow your assets while managing risks effectively.