Until now, the best returns in crypto were reserved to crypto-savvy traders, who spend a lot of time and effort studying projects and teams, reading the charts, following trends, and so forth. Hord gives everyone access to the yield their hard work generates, introducing genuine passive income for all.
Hord is opening the gates to the next-gen high-return crypto investments to novice crypto-traders and even to normies.
Listen to what Crypto Banter told his 200k followers about it
So how does Hord work?
The core concept is disarmingly simple.
Hord is a Social DeFi, where Champions can monetize their strategy and where people in crypto can follow portfolios at the click of a button.
Influencers in the crypto ecosystem broadcast their portfolio, complete with its token holdings and their historical results since they joined Hord.
They are Hord’s Champions.
Anyone can see Champions portfolios’ performance and buy an Exchanged Traded Fund (ETF) token mirroring it.
Hord is managed by two types of smart contracts:
- The Champion Smart-Contract relays information about the Champion’s token holdings to the Mirror Smart Contract
- The Mirror Smart Contract generates and manages the ETF tokens.
When you join a hPool by buying an ETF, the Mirror Contract:
- Acquires assets in the exact proportions of the Champion’s token allocation for the amount deposited by the ETF token buyer
- Mints the token
- Sends it to the buyer’s address
- Buys and sells tokens to mirror the Champion’s activity and maintain the parity between the token allocation underlying the ETF token’s value and the Champion’s portfolio.
You can trade your ETF token at any time on Hord’s Orderbook DEX.
What about Transaction Fees?
Ethereum Tx fees are still eating away at DeFi profit, effectively excluding small investors from utilizing DeFi to its full potential. Does that mean Hord is bound by the same limitations?
By pooling together transactions and buying or selling assets in bulk, Hord drastically reduces the Tx fees issue, as the cost of each transaction is divided between all ETF token holders.
Let’s say, for example, that your Champion thinks it is time to sell his position in Altcoin A and buy Altcoin B. As you know, the cost of the transaction is the same whether he sells one Altcoin A or a billion Altcoins A. In this scenario, let’s say he held 1000 Altcoin A and has 99 followers. The transaction cost at that time is $50.
As all transactions are bulked into one, the sale will effectively be for 100 000 Altcoin A, but the cost remains $50. This Tx cost is then divided between the Champion and all his followers, meaning the individual transaction cost is only $0.5.
Suddenly, the cost of Tx fees stops being a concern.
Both Champions and Followers Win
Followers win by benefiting from the Champions’ knowledge and the high returns they generate, and Champions earn on success fees.
Success fees are a crucial component of the model. Unlike FIAT asset managers, Champions have skin in the game and cannot sit back and relax by leeching out management fees for underperforming portfolios.
Final details on the practicalities of buying Hord ETF tokens to join an hPool, exact fee structure, and more will be explained in greater detail closer to the launch of Hord V1, so stay tuned.
You can already meet our first vetted champions as we introduce them in the coming days at champions.hord.app
The most powerful and fully decentralized social trading platform.
Hord paves the way for the democratization of Assets Under Management and accelerates the move to DeFi from traditional finance.