Traditionally, large-scale pension and mutual funds have dominated the asset management space. These funds have continued to increase their holdings of alternative investments other than stocks and bonds to seek higher profitability, including real estate, private equity, venture capital, and hedge funds. However, most of these investments are highly illiquid and opaque, so stakeholders are blind to allocations with no control over their money. Sadly, investors can only trust what their fund managers have told them about fund profitability.
The good news is that blockchain-based wealth management provides a more transparent alternative to traditional asset management. Instead of dealing with structural inefficiencies and hefty fees that are slanted towards wealthy institutional clients, blockchain-based solutions promise to open the traditional financial system to everyone, including asset managers and retail investors alike, by lowering entry barriers.
Currently, existing blockchain-based solutions are still in their early stages and oversimplified, struggling to provide trustworthy and flexible investing and management vehicles to satisfy a wide range of needs. This struggle is why Cook Protocol is joining the financial revolution—providing access to its leading financial management platform for everyone.
An open, transparent and secure alternative
Cook Protocol is an Ethereum-based protocol that provides asset management service to connect retail investors with professional fund managers. Retail investors have a variety of investment preferences based on risk tolerance. Risk-averse investors tend to favor passive strategies and index-based investments, while growth investors with higher risk tolerance often seek aggressive management. Therefore, professional fund managers are required to apply advanced techniques and allocate funds to maximize returns.
The Cook Protocol provides retail investors with a diverse selection of asset management options offered by a wide variety of professional asset managers. Investment funds can be managed either passively as an index-based fund or more actively through whitelisted money markets.
Retail investors: more trustworthy investment choices
Cook Protocol offers retail investors numerous investment choices based on risk tolerance and desired rate of return. Unlike traditional asset management platforms, the investment funds at Cook Protocol are based on blockchain. The risk index and profit information of each investment fund are fully transparent and trustworthy, and investors can trace the data on the blockchain.
Once retail investors are ready to invest, they can deposit an accepted type of cryptocurrency into a particular fund in exchange for fungible ERC-20 tokens, or ckTokens. These ckTokens are unique to each fund and represent partial ownership, similar to shares in Exchange Traded Funds (ETFs). Investors can buy and sell ckTokens, or redeem them for their underlying assets anytime.
Fund managers: augmented trading capabilities
Cook Protocol also assists fund managers in providing professional asset management services conveniently. A fund manager can set up an investment fund and define the overall investment strategy, fee structure, accepting asset types, and access limits for each of the whitelisted money markets. Funds are then pooled from retail investors into a smart contract that the fund manager can deploy according to the strategy, be it a simple index fund or the complex active management of multiple streams of financial products. While each transaction is transparent, the overall investment strategy remains opaque to outsiders to protect intellectual property and spur innovation.
Cook Protocol: Future of Decentralized Finance
Cook Protocol provides a transparent and flexible asset management service marketplace that satisfies both the diverse needs of retail investors and the professional requirements of fund managers. Therefore, retail investors can receive reasonable returns based on risk tolerance and monitor fund allocation without worrying about security or fraud. Furthermore, fund managers can leverage Cook Protocol to carry out virtually every professional investment strategy without open-sourcing their methods and techniques. Indeed, Cook Protocol is a revolutionary approach to asset management. Their vision statement is a clear indication of the ambition of the project team: bring finance to the masses!
Company: Cook Finance
Contact: Adrian P.
(Syndicated press content is neither written, edited or endorsed by ED Times)