How does Matrixport's strategy investment help users capture excess returns?

Author: Xiyou, ChainCatcher

Editor: Marco, ChainCatcher

Market volatility has become the norm, with occurrences of both long and short liquidations happening frequently. How can one earn rational returns and seek excess profits in a fluctuating market? Perhaps you can learn about the strategy investments on the Matrixport platform.

Through the strategy investment products on the Matrixport platform, professional traders with operational expertise can "fund" their trading strategies. After users subscribe to the "fund" shares, they can participate, and the traders will flexibly adjust the investment portfolio based on market conditions to achieve the best investment returns. Users only need to share a portion of the profits with the traders at the end of the "fund."

Currently, the strategy investment products on the Matrixport platform cover quantitative strategies (arbitrage, CTA trend following, long and short), subjective trading strategies, private domain strategies, etc., catering to different investors' needs and risk preferences.

Matrixport Investment Strategy Products Stand Out

Since reaching a peak of $70,000 in March, BTC has entered a fluctuating market, with prices oscillating sharply between $60,000 and $70,000, and the frequency of both long and short liquidations has been increasing. According to Coinglass data, the average daily value of BTC long and short liquidations has exceeded $200 million in the past two months, with liquidation amounts reaching as high as $1.16 billion on March 5 and over $900 million on April 12 and 13. In the face of unclear future market trends, users' demand for stable income investment methods or strategies is growing.

Regarding the stable income of crypto assets, off-chain exchanges have long launched financial products such as arbitrage and fixed income, while on-chain products like lending, staking returns, and LSTs, as well as derivative LRTs, are emerging endlessly. However, for users, on-chain staking products have a high participation threshold due to gas fees and complex operational processes, making centralized platform investment products a more favorable choice for user experience.

As a one-stop cryptocurrency financial service platform, Matrixport has also launched various crypto financial products catering to different risk preferences, including demand deposits, lending, fixed income, dual-currency investments, and snowball strategy investments, which are well-received by users. In the recent severe fluctuations of the crypto market, the outstanding performance of Matrixport's trading strategy products has attracted attention from the crypto community. As of May 20, several products maintained absolute returns of over 50%.

Compared to crypto fixed income products, Matrixport's strategy investment products excel in capturing excess returns. How to participate in strategy investments on the Matrixport platform, especially quantitative investments, has become a new discussion hotspot in the crypto community.

Quantitative investment can transform investment concepts, market rules, market data, and trading strategies into specific data models and algorithms, then use algorithmic models to process vast amounts of historical data to identify price movement patterns, predict future performance, and formulate trading strategies to achieve stable returns. Due to its stable performance, diversified investment, and rational investment advantages, it is regarded as a tool to navigate through "bulls and bears."

However, the entry barrier for "quantitative trading" is relatively high. In addition to having basic investment trading knowledge, traders also need a solid mathematical foundation and professional financial literacy, such as statistics, financial market theory, and programming skills (like Python), to support the modeling and testing methods of trading strategies, which are typically considered investment methods that only professional institutions can accomplish. Currently, most quantitative participants in the crypto market are institutions, market makers, and large-scale professional investors with technical expertise.

The strategy investment products on the Matrixport platform perfectly address these user pain points, lowering the participation threshold for quantitative products. By "funding" the seemingly "high-tech" quantitative strategy products, novices do not need to understand the trading and technical knowledge behind the quantitative strategies; they only need to subscribe to the relevant strategy product shares to enjoy the future returns brought by quantitative strategies and capture excess profits.

How to Choose the Right Matrixport Strategy Investment for Yourself?

Based on different user groups, the strategy investment products on Matrixport can be divided into two categories: one for the general public and the other for private domain traffic, which are not publicly sold.

The public-facing strategy products consist of quantitative strategies, subjective trading, and arbitrage treasure.

Quantitative strategies include arbitrage strategies, long and short strategies, and CTA trend strategies. It is worth mentioning that some of the quantitative strategy products are customized for users by teams of quantitative experts invited by Matrixport, including Luxtech Capital (managing over $10 billion), Hashingbot team, Pythagoras Investments, BQUANT Technology, etc. Currently, the Pythagoras BTC long and short strategy and Pythagoras USDT long and short strategy on sale have both won the "Best Digital Hedge Strategy of 2022" awarded by HFM Hedgeweek.

Subjective trading strategies are mainly actively customized trading strategies by professionals or KOLs, which can dynamically adjust strategies based on market conditions to achieve the best returns.

Arbitrage treasure is a demand deposit arbitrage product primarily based on funding rate arbitrage strategies, friendly for beginners. This product is similar to traditional money market funds like Alipay's Yu'ebao, with low risk, low investment thresholds, no lock-up period, and no subscription or redemption fees, allowing users to subscribe and redeem at any time. According to official information, the annualized yield of Arbitrage Treasure over 90 days is close to 20%, with a minimum investment of 500 USDT.

If you want to learn more about the specific strategies, historical returns, team co-investment, fees, and other details of different products, users can open the app and click on the "Strategy Investment" section in the homepage navigation bar to check relevant information.

The private domain strategies aimed at private domain traffic are only open to specific user groups. The system will automatically generate an invitation code after the private domain strategy is successfully created, and the "fund manager" can share the invitation code within the private domain traffic; only those using the invitation code can access and subscribe to the private domain strategy product.

Anyone can create a private domain strategy, and the invitation code mechanism can reduce users' investment risks, allowing private domain strategy creators to manage products better based on trust mechanisms.

Currently, well-known analysts like Markus, Professor Hash Wesley, and trader Qing Tian have joined Matrixport and created private domain strategies.

However, Matrixport has now developed the "Private Domain Selection" feature, allowing high-quality private domain strategy products that meet assessment standards to apply for "private to public," fully opening up to users and providing more investment choices.

Regarding funding rates, Matrixport has clearly marked the charging standards for each strategy product in the investment rules, usually with strategy publishers charging performance fees, but only on positive returns.

In terms of fund and product safety, Matrixport states that its quantitative strategy products strictly adhere to traditional financial regulatory standards, ensuring user asset safety through asset management separation, with the quantitative team having trading rights only, without the right to transfer assets out.

Additionally, every quantitative strategy product launched on the Matrixport platform has undergone official review and screening. Before the issuance of quantitative strategies, the Matrixport strategy investment team conducts complete risk control, due diligence, data analysis, and yield testing processes, and only after passing these will they be officially launched; after listing, they will monitor the performance indicators of the strategies to maximize the effectiveness of strategy implementation to achieve the desired APY.

As of May 20, there are over 40 strategy investment products available for the general public on Matrixport, with several products having absolute returns exceeding 100%, and multiple new strategies are under review. However, it is important to note that the final returns of strategy investment products depend on the net value performance after investment, and historical and target return data are only references for strategy returns, not explicit return commitments.

Building a Comprehensive Crypto Asset Management Empire

If the "dual-currency wealth management" launched by Matrixport five years ago was a pioneering product in crypto wealth management, then the current strategy investment products represent another blockbuster product for Matrixport. By "funding" complex strategic products, it lowers the entry barrier for ordinary users into the crypto asset investment field while opening up new opportunities for innovation and development in crypto wealth management products.

Matrixport was co-founded by Wu Jihan, primarily providing trading, lending, custody, and payment services for institutions and qualified individual users. Its products cover various risk levels, suitable for most users looking to earn returns from cryptocurrencies. It completed a $100 million Series C financing with a valuation of $1 billion in 2021, with well-known investment institutions like IDG Capital and Lightspeed participating, making it a unicorn in the crypto field.

Currently, Matrixport's trading volume has reached $7 billion, with a loan balance of $200 million and $6 billion in assets under management and custody, employing over 300 people globally.

The reason the platform has maintained normal operations for five years without errors is that Matrixport has always prioritized asset safety. It not only has an independently developed institutional-grade third-party custody solution, Cactus Custody, but also benchmarks traditional finance by deploying bank vault-level data centers.

In terms of compliance, Matrixport holds a Hong Kong trust company license, a lender license, is an FCA-compliant authorized representative in the UK, and is a member of the Swiss FINMA SRO-VFQ.

Unlike exchanges, Matrixport, as a one-stop crypto financial service platform, was founded with the concept of helping users earn returns through their cryptocurrencies. It has invested significant effort in product development and construction, akin to a monk quietly doing practical work, remaining extremely low-key while consistently prioritizing user interests, contributing to the building of a crypto asset management empire.

In terms of product functionality, Matrixport currently provides multiple services from deposit to asset appreciation, including spot OTC trading, fixed income, strategy products, demand deposits, lending, and asset management, while also integrating spot and contract functions from Binance and OKX. Whether for individual investors or institutional clients, Matrixport can meet their investment and wealth management needs.

This means that users can complete a one-stop crypto asset operation process from deposit, trading, custody, wealth management, to withdrawal on the Matrixport platform, truly serving as an entry point for users to navigate Web3 finance.

On the business line, Matrixport has already established several products, including the crypto exchange Bit.com, custody institution Cactus Custody, RWA digital asset platform MatrixDock, and investment institution Matrixport Ventures, covering multiple business lines such as asset trading, custody, wealth management, and early deployment of quality assets.

Among them, Matrixport Ventures has recently participated in significant financing for several well-known projects, including a $9 million financing for social infrastructure UXLINK and a $5 million seed round for BounceBit.

Matrixport is not just a simple crypto asset management company; it is also an important driver of innovation in crypto financial products, striving to make crypto asset management gradually become a part of the mainstream financial world.