Plethori is the first blockchain based investment platform that offers ETFs in a decentralized manner on multiple chains, bringing in a new era of open trading and creation of truly trustless ETFs.
What are ETFs?
Exchange traded funds (ETFs) are investment funds that comprise different assets, providing it an underlying value. ETFs allow an investor to use a single fund to diversify their portfolio without the need of investing in different securities simultaneously.
This way, a person can buy one form of security and the investment is spread in different securities, bonds and other instruments. This offers a range of benefits such as freeing the investor from the worry of keeping track of multiple investments, lower costs, ease of tradability, lowering risk through automatic diversification, increased liquidity and better tax rates.
Plethori: Decentralizing the Centralized ETF Industry
Plethori is a blockchain-based ETF trading platform that is bringing the traditional ETF sector to the new, digital era. Through Plethori, users will be able to invest in traditional ETFs and others that cover the insurance industry, NFTs and oracles.
The current traditional ETF market has crossed the $7.7 trillion market in 2020. This is a lot of trading and profit potential that is still in an inefficient environment due to centralization. Plethori intends to change all that and merge the investment market with blockchain. As a decentralized platform, it will do away with the middlemen and offer a peer to peer trading of the investment vehicles. On top of this, users will be able to stake their own collaterals to create custom ETFs for others to buy and sell. Other advantages include:
- Cross Chain Compatibility: Plethori runs on both the Ethereum and Polkadot blockchain, enabling users to leverage both chains and increase their ability to create and trade ETFs.
- NFTs: Creation of an EFT offers the creators ERC-721 standard Non Fungible Tokens, gamifying the whole economy. As the ETFs gain value, so will the NFT, bringing in more profitability.
- Fiat Gateway: Rather than disrupt, Plethori connects the traditional finance world with blockchain and allows for fiat based purchases and investments.
- Layer 2: Blockchain overloading is avoided from the start with Optimism based layer 2 solution that scales the whole system to allow for ultra low transaction fee, higher transactions per second and still maintain the high security offered by a decentralized system.
The Plethori Governance and PLE
As a decentralized platform, Plethori is powered by its own utility token, the PLE. The PLE serves a dual purpose of serving users and investors in the trading environment and the overall governing model.
As PLE holders, users will be able to use the token for simple access to deposits and withdrawals on Plethori, along with staking and farming in order to earn yields. The PLE will also be involved in catering the transaction fee involved in the trading processes. From a governing point, PLE holders will be able to vote on different proposals, such as expansion, new features and even make decisions on which ETFs to be added, their underlying assets and listing/delisting.
Based on a deflationary model, the PLE tokens are limited to 100 million. They will be distributed in different seed rounds, with 3.74 billion for public sale. Other areas include liquidity, staking pool, farming and community rewards.
Merging fiat based ETF industry with the power of blockchain and crypto, Plethori will unlock the siloed nature of the traditional investment industry and bring it to the decentralized age, allowing for millions of people globally to access the profitable trade industry.