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eToro focuses on decentralized finance

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eToro, the multi-asset investment platform, today launched DeFi Portfolio, a portfolio that allows you to invest long-term in key projects in the decentralized finance system, allowing you to become part of one of the most innovative developments in the world of finance.

Decentralized finance (DeFi) is a development current that aims to disintermediate traditional finance by inserting financial services within the blockchain. DeFi aims to decentralize ever larger parts of the financial industry, not just transactions (as is the case with Bitcoin). This is accomplished through smart contracts, which are snippets of code that make it possible to execute complex transfers and agreements through the blockchain, without the need for approval from a central authority.

EToro’s DeFi Portfolio includes eleven crypto-assets: 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, comments: “DeFi is one of the most talked about innovations in the finance branch and has a strong dynamism of new projects and crypto-assets. For those who don’t have time to search for each individual asset’s whitepaper, however, this market feels like a minefield. By putting together a selection of crypto assets in the DeFi CopyPortfolio, we are taking on the heaviest selection work, thus allowing our users to be exposed to the market and diversify risk across a wide range of crypto. ”

EToro’s portfolios offer investors ready and fully allocated exposure to various market themes. By pooling numerous assets based on a precise methodology, and adopting a passive investment approach, eToro’s portfolios represent long-term investment solutions that allow for diversified exposure without the application of management fees.

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“Decentralized Finance does not rely on central financial intermediaries such as brokers, exchanges or banks to offer traditional financial instruments, but instead uses smart contracts on the blockchain,” explains Brinker. “Both blockchains that can support smart contracts and a selection of the main protocols are considered in the portfolio, so as to allow exposure to every corner of DeFi – from Uniswap to Yearn and beyond – without having to spend hours doing research. eToro is able to leverage its unique position as a crypto innovator to monitor and revisit these projects, so as to update the allocation and methodology over time ”.

The initial investment starts at $ 1000 and investors have access to tools and charts to track portfolio performance, while eToro’s social feed will keep them constantly updated on developments in the DeFi industry. DeFi Portfolio is one of over sixty portfolios available on eToro.

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