Use Cases

  • Retail and Institutional Value Storage
  • Initial Coin Offering Participation
  • Diversification and Risk Mitigation

Retail and Institutional Value Storage

The buoyant nature of ndau– supported by stabilization incentive burns and ecosystem alignment incentives – positions it as an ideal store of value for both retail and institutional investors. In developed and emerging countries across the globe, ndau can be used to diversify both public and private long-term, institutional holdings such as university endowments, employee pension funds, collateral accounts, and federal bank reserves. For individual investors, the enduring prospect of ndau’s appreciation along its published price curve, coupled with systemic volatility dampeners, may enhance performance and mitigate risk inherent in retirement accounts such as 401(k)s, IRAs, and 403(b)s as well as other investment vehicles such as 529 plans and savings accounts. In fact, ndau can also be thought of as an alternative to certificates of deposits, treasury bonds, savings bonds, and other such investments that are commonly used to store value over a long period of time. This is particularly appealing for investors in underdeveloped countries with volatile corporate and sovereign bonds denominated in unstable fiat currencies.

Key Takeaways

  1. Designed for both public and private institutions and individuals
  2. Ideal for retirement accounts, pension funds, collateral accounts, bank reserves, student savings plans, etc
  3. Can be used in place of savings accounts, CDs, treasury bonds, savings bonds, etc.

ICO & IEO Participation

As the evolution toward a more decentralized and secure ecosystem of tokenized assets progresses, an increasing number of Initial Coin Offerings (“ICOs”) and Initial Exchange Offerings (“IEOs”) will be raised predominantly through digital currencies. While BTC and ETH have been the prime digital currencies used to participate in such capitalization events, we now see the rise of IEO’s that generally raise funding in the native token of the Exchange. The extreme volatility of BTC and ETH makes those tokens a risky medium of exchange for any fund that is obligated to hold the currency for a period of time. And raising funds into an Exchange’s native token holds value only so long as that Exchange maintain’s its level of marketshare. Converting tokens raised into fiat currency can offset this risk, but transaction fees and dislocated market prices as a result of isolated exchanges create disputes amongst investors about the aggregate amount capital invested in the company at hand. With ndau, not only will systemic volatility dampeners – stabilization incentive burns and ecosystem alignment incentives – lessen the risk involved with holding the digital currency, but the ecosystem’s epistemology chain and market maker liquidity obligations create a more transparent and universally agreed upon price for ndau – eliminating company-investor disputes.

Key Takeaways

  1. Less volatile than BTC, ETH, and other existing cryptocurrencies
  2. Safer medium of purchasing tokens during and ICO for both companies and investors
  3. Price transparency and liquidity eliminates disputes about aggregate capital invested

Diversification and Risk Mitigation

We are seeing natively digital assets become an asset class that institutions are including as part of a fund’s allocation. The volatility of the major, liquid digital assets require active management of those assets. And the increasing number of stablecoins do not allow for appreciation in value other than a possible arbitrage opportunity. ndau’s buoyant characteristics make it an ideal long-term addition to a portfolio of diversified assets seeking improved absolute returns with an improved Sharpe Ratio.

Key Takeaways

  1. ndau’s design for low correlation to traditional markets can enhance risk-return ratio for portfolios
  2. Dampened volatility makes it suitable for investors of all kinds
  3. Portfolios with long-term event horizons are rewarded for holding ndau over a long period of time