Crypto trading and investing are a very hot topic these days, as multiple companies, banks, and even entire states and countries are rapidly opening doors to digital currencies.
Whether they have finally admitted that digital currencies are not going away, nor are they losing the interest of the people, or if they finally understood the potential to make money — everyone seems to be talking about digital coins and driving their adoption.
Of course, trading and investing itself have existed for decades and even centuries in traditional finance. And, one thing that is the same whether you are investing in crypto or traditional assets is that the key to success is to diversify your portfolio.
In other words, no one should ever invest all of their money into a single asset, no matter how much faith they have in it.
I believe, when it comes to crypto, that is often easier said than done. Assets vary from one another in pretty much every attribute imaginable.
That includes capitalization, complexity, fees, yield farming algorithms, scalability, and countless other things.
The more assets you choose, the chances are that they will be from many different blockchains, which brings forth further complications.
You can’t use an Ethereum wallet if you invest in assets that are not on Ethereum’s network, for example.
And, since non-diversification is not an option, the only remaining thing was to come up with a new solution that would solve the issues.
This is why interoperability became such a massive thing in crypto, and why every other project is trying to achieve it and connect to as many other protocols as possible. This is where YDragon comes in.
What is YDragon?
YDragon is a project that describes itself as a “cross-chain index ecosystem with yield-bearing collateral, providing a true interoperable cross-asset experience.”
Essentially, it is a new, upcoming project that will allow investors to invest in multiple assets, as well as multiple yield farming protocols, all at once.
While this is something brand new in the crypto industry, it is not exactly a new concept.
A lot of people who have invested in traditional finance before know that there are entire baskets of assets that allow investors to easily invest in multiple assets at the same time in order to diversify their portfolio without having to invest in each asset manually.
This is a similar thing, although it is done the blockchain way, where you don’t rely on portfolio managers, but rather on smart contracts.
As a result, the assets don’t work for the benefit of the fund management firm — they work for investors themselves. The system would simply redistribute yield farm rewards to investors based on their investment, offering a simple, efficient way to increase the odds of making gains.
The project is about to hold its initial minting event in a little over three weeks, and after that, its first move into the crypto index space will be to bring together the best assets on Binance Smart Chain (BSC).
It will create an index for the top 5 most reputable projects on BSC, featuring hand-selected protocols in order to provide not only a rich selection of yield farming but also the best ones on offer.
Soon after that, the same will be done on other blockchains, including Avalanche, Polkadot, and Matic. And, of course, investors will not be limited to only investing in indexes.
They will also be able to buy YDragon’s native token, YDR, and gain exposure to the entire project ecosystem and give holders the ability to vote on future index compositions and make strategic decisions.
To further incentivize platform users to hold YDR, they can expect to earn interest from staking YDR, and receive airdrops of newly listed indexes, simply by holding.
The first index can be expected alongside the launch of the YDR token, meaning somewhere in mid-July of this year.