METF Finance — the first decentralized ETF protocol, powered by the METF token. Thus, the term DTF is coined by the team as DEX Traded Fund, which is the first of its kind. Each METF token is backed by a basket of assets (e.g. MMF tokens, METF-MMF LP, etc.) in METF managed assets (AUM), giving it an intrinsic value below which it cannot fall. All of these assets come from the MM Finance DEX and are part of the DEX Traded Fund.
About METF Finance
The goal of METF Finance — to create a policy-driven, decentralized ETF system, built into the Cronos network. The developers believe that in the long term, this system can help to optimize stability and consistency so that the DTF can function as a global unit of account and a medium of exchange currency that represents a basket of goods/investments.
METF Finance wants to achieve price uniformity for a representative basket of goods without the use of fiat currency, in order to allow the cryptocurrency industry to separate itself from the traditional financial world once and for all.
What is an exchange-traded fund:
| 1 | An exchange-traded fund (ETF) - a type of pooled investment that works just like a mutual fund. |
| 2 | Typically, ETFs track a specific index, sector, commodity or other asset, but unlike mutual funds, ETFs can be bought or sold on the stock exchange just like regular stocks. |
Market participants have two main strategies: staking and mining. Stakers stake their METF tokens in exchange for more METF tokens, while miners provide LP tokens or MMF tokens in exchange for discounted METF tokens after a fixed vesting period.
How can you benefit from the MM ETF?
The main benefit for stakers comes from higher prices and increased supply. The protocol sells METF bonds (which mint new tokens) when there is a healthy premium. The reward that the protocol will earn will be distributed among the stakers. Due to the nature for which METF tokens are produced, it is in the interest of the protocol to provide a reasonable markup per METF token. The only way to ensure a healthy premium - for the token to accumulate more assets to increase the intrinsic value of the token. Over time, the protocol will be adjusted to reflect the policy of increasing the METF floor. This act will reduce the inflation of the total supply of tokens by allowing the protocol to buy back its own tokens, further strengthening the idea of raising the floor price.