Global multi-asset investment platform eToro has today launched a DeFi portfolio, offering investors key projects in the DeFi ecosystem.
Decentralised finance (DeFi) aims to avoid traditional financial intermediaries by putting financial services on the blockchain. DeFi’s goal is to decentralise wider parts of the financial industry, rather than only the transactions, as with Bitcoin. This is achieved through smart contracts, which are small parts of computer code that enable complex transfers and agreements to be carried out on the blockchain without the need for approval from a central authority body.
The new DeFi portfolio eToro has launched comprises eleven DeFi cryptoassets including 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, commented:
DeFi is one of the most talked about innovations in finance, with thousands of new cryptoassets emerging in recent months. But for people who don’t have the time to research every asset’s whitepaper, the market may seem like a minefield. By packaging up a selection of cryptoassets in a DeFi CopyPortfolio, we’re doing the heavy lifting and enabling our customers to gain exposure and spread the risk across a variety of cryptos.
eToro Portfolios offers its investor clients allocated exposure to various market themes by bundling together several assets under a defined methodology, and employing a passive investment approach. Brinker explained:
Decentralised finance is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilises smart contracts on blockchains. Both smart contract blockchains and a selection of leading protocols are included in the portfolio, giving you exposure to every corner of DeFi — from Uniswap to Yearn and beyond — without having to spend hours on research. We use eToro’s unique position as an innovator within the crypto domain, to revisit these projects and update the allocation and methodology down the line.
Investors can start initial investment from $1,000 and access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them informed on developments in the DeFi sector. DeFi is one of over sixty portfolios available on the platform.
Earlier in August, eToro reported continued strong momentum in its second-quarter earnings, driven by crypto trading. The company saw a YoY rise of 121% in newly registered users to 2.6 million
eToro is due to go public via a $10 billion SPAC merger later in the year.
