MatrixETF VS Traditional ETF
A lot of users are wondering what is the difference between MartixETF and Traditional ETF, in addition what is MatrixETF advantage compared to Traditional ETF. Today we would like to explain the questions specifically for better understanding by users.
What’s an ETF?
An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock.
About Traditional ETF
Traditional ETF is an asset which allows users to track stocks, sectors, commodities and indexes etc. Users can purchase shares in trade on stock exchanges. The prices will change like stocks regularly through the course of a trading day. What we mentioned above, the feature of an ETF allows users to gain income from a basket of concept stocks rather than trading for individual stocks.
About DeFi ETF
As we know MatrixETF is a DeFi ETF platform, DeFi regards the alternative category of digital currency assets which enable trading, loans, interest accounts and so on. The underlying technology is the smart contract instead of legacy institute on blockchain, meanwhile the growth and activity of DeFi in the market is incredible. DeFi ETF is not only a concept ETF product of decentralized finance, but also with smart contracts on blockchain by automated market maker system, in addition users can mint/redeem it for gaining more incomes as well as potential faster operation.
Here is a table you can have a look at, probably it’s more clear for getting to the point. Traditional ETF use centralized systems to collect stocks, bonds and cash all together, however MatrixETF operates a basket of tokens on decentralized blockchain. Users can also do farming and vault other operations on MatrixETF to gain extra incomes, there is no extra income on traditional ETF.
In future MatrixETF will open MatrixETF Components which allows users to freely create customized ETF. Users can use Set to form a custom ETF fund and then use the tools provided by the platform (including DEX trading, lending, farming, governance, insurance, strategies, etc.) to add value to the fund, attracting platform users to buy/cast, and getting commissions, premiums and other income.
MatrixETF is the next generation of decentralized ETF platform to run the cross chain，which goal is to establish a decentralized, automated, personalized and diversified portfolio for users, as well as help users easily enjoy long-term, stable and efficient financial services.