The following is a summary of the work we have been doing and the changes we will adopt to ensure the sustainability of the project.
Market conditions and bear trend
Surely there is not much to say at this point, since all of us in the project are aware of the period that the market is going through in these weeks/months. Both for the global economic situation and the falls in the stock markets and lately for the destabilization created by the Terra ecosystem.
It is undeniable that the bullish market cycle may be over and that we could now be in a bearish period that we do not know when it will end. It is easy to see it in almost all altcoins, which in many cases have lost more than 90–95% of their value in recent months.
For us, this negative trend has been very difficult to manage, since practically 100% of the life of our project has been in a market contrary to what suits us best, given the nature of the project (which is to absorb the uptrend of the altcoins).
Our plans to develop short strategies have been hampered by increased regulation on exchanges, which over the past year have implemented mandatory KYC and banned derivatives trading in many parts of the world.
All these obstacles we have encountered along the way have made us focus on what we believe will be the future of ARTX:
Towards decentralized and intelligent management
As we mentioned in the last follow-up, in recent times we have been working on automatic strategies that somehow abandon algorithmic trading (Smart Portfolios).
The reason for this new objective in our development plans is to be able to adapt them to fund management in a decentralized way, through smart contracts and using CEXs to manage capital and trades.
This type of strategy we are developing, unlike algorithmic trading, performs far fewer trades and the management is more optimized, so that network commissions would not affect performance much.
In the face of these developments we are encountering several obstacles that are also slowing us down: among them is the very negative market trend.
As a first step, the management of these investment strategies would be carried out in Spot (or in other words, in Long). In this context, our models go into capital conservation mode, so the operations are very few and the results we can obtain are not conclusive enough to handle large capitals.
For the time being, while we continue to develop and sophisticate the models, we will begin to implement these strategies in exchanges that do not require KYC and we will gradually abandon algorithmic trading, always with the objective of reaching a total decentralization of the system.
Reduction of consolation rewards to a 10% APR
Having said all of the above, and with the intention of maintaining the sustainability of the project in order to reach the next upward cycle as well prepared as possible, we will reduce rewards to 10% APR starting next month distribution.
We have been giving consolation rewards of 25% APR for more than a year and it is time to reduce them until the market becomes favorable and we can replenish the treasury.
Community Channel: https://t.me/artxcommunity
ARTX Trading Tracker: https://t.me/artxtrading
ARTX Announcements: https://t.me/artxannouncements