Global multi-asset investment platform eToro has launched a decentralised finance portfolio (DeFi), offering investors long-term exposure to key projects in the DeFi ecosystem.
DeFi is a movement that aims to bypass traditional financial intermediaries by putting financial services on the blockchain. Rather than merely decentralising transactions (as with Bitcoin), DeFi aims to decentralise wider parts of the financial industry. This is accomplished through smart contracts, which are snippets of computer code that enable complex transfers and agreements to be carried out on the blockchain without the need for approval from a central authority body.
eToro’s DeFi portfolio consists of eleven DeFi cryptoassets: Ether (ETH), Uniswap (UNI), Chainlink (LINK), Aave (AAVE), Compound (COMP), Yearn.finance (YFI), Decentraland (MANA), Polygon (MATIC), Algorand (ALGO), Basic Attention Token (BAT), and Maker (MKR).
Dani Brinker, head of portfolio investments at eToro said: “DeFi is one of the most talked about innovations in finance, with thousands of new cryptoassets emerging in recent months. But for people who don’t have the time to research every asset’s whitepaper, the market may seem like a minefield. By packaging up a selection of cryptoassets in a DeFi CopyPortfolio, we’re doing the heavy lifting and enabling our customers to gain exposure and spread the risk across a variety of cryptos.”
Initial investment starts from $1,000 and investors can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the DeFi sector.