Yield Feeding: The concept
At the speed at which technology and the financial ecosystem are evolving, companies, projects and individuals are finding it increasingly difficult to find new ways to manage their funds and capital in the most profitable, customizable and secure way.
In this context, ARTX is created with the main objective of helping projects and individuals to diversify their investments and generate passive income through automatic algorithmic trading strategies.
We call Yield Feeding the process that a project undertakes to:
- Mobilize its own funds that usually are at a standstill generating a high opportunity cost and creating with them a Yield Feeding Pool, funds set aside that will be used to:
- Make profits and generate a passive income (yield) which is a key point due to the current DeFi context. Obtain high returns without compromising the availability or ownership of those funds. And finally:
- Invest these profits in the community through buy backs, airdrops or distributions (feeding).
ARTX Trading will be offering its clients a range of products and plans with which they can define its Yield Feeding Plan, helping them to minimize the high opportunity cost of having their funds at a standstill.
Why is it important?
Most new projects start with an initial capital that is consumed slowly over time according to their development plans and road map. The time that this capital is not invested causes an opportunity cost that has a negative impact on the project and, therefore, on its community.
In the current context, it is important that the management plan of this initial capital aims to generate passive profits while remaining liquid and available for the team to use it when it’s needed without affecting their bussiness. This is achieved by creating and feeding their Yield Feeding Pool.