ARTX: Follow-up & 2023 Expectations

3 min readJan 18

Following last quarter’s announcement of the completion of ATLAS 1.0 development, it’s now the turn of the strategy we’ve been perfecting for so many months, COLOSSUS 1.0.

COLOSSUS 1.0

COLOSSUS 1.0 is a neutral pair trading strategy, Long & Short. This kind of investment strategy involves long and short positions in two different assets with a positive correlation. The two offsetting positions form the basis for a hedging strategy that seeks to benefit from either a positive or negative trend.

After the testing and development phase, COLOSSUS 1.0 has been in production for 5 months, here are the results compared to Bitcoin:

COLOSSUS 1.0 analyses all the assets available on the exchange, groups them into strongly correlated pairs and, using a scoring model, determines which asset is stronger than the other.

Doing so, it manages to profit from differences in asset performance, with fairly consistent results.

DEPLOYING PART OF THE YIELD FEEDING POOL

In the coming days/weeks we will start to deploy part of the Yield Feeding Pool in these two strategies ATLAS 1.0 and COLOSSUS 1.0.

At the moment, both strategies require a centralised exchange for their execution. In this case, we will use Bybit and Kucoin for their implementation.

We will implement a disaggregated tracker of the strategies and the Yield Feeding Pool so that ARTX Holders can track investment performance.

GOVERNANCE AND DECENTRALIZED MANAGEMENT

We continue to develop the necessary infrastructure to implement our investment strategies in a decentralised manner. The problems we face have not changed, low liquidity in most assets and high commissions in certain networks.

Gradually we expect to be able to solve these problems, especially as the market matures and liquidity in smaller assets increases.

In this regard, during 2023, we intend to initiate governance processes that allow Premium Holders to make decisions regarding the management of investment strategies and the use of the Yield Feeding Pool.

As we move towards more decentralised management, these processes will be crucial to ensure proper capital management.

CONSOLATION DISTRIBUTIONS STOP

With this latest distribution, completing the pending 2022 ARTX distributions for Premium Holders, we have decided to stop the consolation distributions for the time being.

Until today, we distributed 10% APR to Premium Holders on a monthly basis. After almost two years of bear market, we believe these distributions need to change.

As of today, there is no vesting left, and any selling pressure on the token will only come from holders who leave the project.

By stopping consolation distributions, we stop distributing ARTX to investors and therefore stop injecting tokens into the market. This will stop the ARTX circulating in the market from growing.

2023

We believe that 2023 will be a transition year. We want to prepare for the next cycle, so our goal this year will be to grow in AUM. Grow the Yield Feeding Pool and launch decentralised fund management solutions.

We want the price of the ARTX Token to be linked to the amount of capital we are able to have under management, as well as the utility we can give to the token in terms of the future solutions we create.

As we have said many times, ARTX is a long-term project with which we want to build something solid and lasting. We want to accompany the maturation of the market and ensure that the project is nurtured by the success of the ecosystem itself.