Durafi — Decentralized Exchange For the Trading of Cryptocurrency Indices

January 5, 2022

We’re excited to build Durafi; a decentralized exchange designed specifically for trading cryptocurrency index derivatives. Investors should be able to easily invest in diversified exposure to major cryptocurrency trends without having to manually buy and sell dozens of tokens and without having to pick individual tokens as winners or losers; this is our core belief.

  • So say you’re bullish on Defi but less sure about Cefi? Long our Durafi DeFi Index, and hedge with a short of our DCI50 Durafi Crypto Index.
  • Bullish on NFTs? Just go long with our NFT Index.
  • Want to simply go long the entire crypto market? Well then just long our Durafi Crypto Index with a single trade.

By reducing transaction fees and simplifying crypto diversification, we hope to democratize access and reduce cost and complexity for all investors. Steered by our community, we also hope to launch a range of new indices to enable investors to bet on many different types of crypto trends, sectors, and, in a future version of Durafi, even sophisticated trading strategies.

How can investors achieve diversified investment exposure trading a single token?

“Durafi Fund Tokens” (DFTs) trade on our decentralized exchange and track the performance of baskets of cryptocurrencies, such as the Durafi Crypto Index, which tracks major cryptocurrencies, the Durafi Defi Index, which tracks major decentralized finance protocols, and the Durafi NFT Index, which tracks major NFT platform tokens. Each token is designed to represent the overall market performance of its index constituents.

We’ve designed DFTs so that they can be created for any index of tokens, or even any asset class for that matter.

Trading efficiency & speed

Buying a single diversified DFT replaces the multiple transactions needed to achieve portfolio diversification. DFTs deliver many of the advantages that Exchange-Traded Funds (ETFs) brought to traditional financial markets; however, they surpass ETFs by taking full advantage of decentralized finance — including:

  • The ability to offer decentralized custody
  • The use of automated market-making and the democratized sourcing of liquidity providers
  • Community-based selection for future Durafi indices

DFTs are completely different from investing in a traditional crypto fund

DFTs are different from traditional crypto funds in that they can be leveraged and traded 24/7 — they trade like single tokens. Traditional crypto funds will always serve a useful purpose in the market; however, DFTs are a much lighter, more flexible, and more efficient way for traders to gain diversified market exposure in the same way that ETFs revolutionized markets in traditional financial markets.

Our three initial indices are just the start. We are already planning a pipeline of future DFTs representing:

  • Single-brand NFT-collections
  • Volatility indices for the crypto market
  • Active crypto hedge fund strategies packaged into a single token
  • Sophisticated derivatives
  • …and many other investment types.

However, we can’t do this alone. The most effective way for Durafi to meet the market is for Durafi’s future indices to be community-driven. So please feel free to join our nascent community and contribute to steering future DFT releases, suggesting/requesting trading features, and enjoying early access to the platform!