We’re excited to unveil that we’re working on a community owned hedge fund — The Mizar Galaxy Fund.
The Galaxy Fund
Mizar makes it easier for people to achieve satisfyingly high returns and become better investors along the way, without the hassle of trading and researching investments on their own
Unlike a cryptocurrency index fund, an ETF, or an exchange, the Galaxy Fund is a different way for people to invest in a large group of underlying assets. Profits from market manoeuvres made by Mizar’s hedge fund are shared with liquidity providers through our LP staking program, as well as distributed back into the fund, growing it exponentially. The portfolio of the Galaxy Fund will exclusively be traded in cryptocurrencies. The fund is managed by a selection of Mizar’s, best performing traders that are, re-balanced on occasion based on portfolio performance.
Using a variety of metrics that determine performance, we provide an equal opportunity for all of the best traders in the world to use the size of our hedge fund to gain performance fees. In turn, Liquidity providers get exclusive access to the Galaxy Fund and are the only ones eligible to participate in the fund and its returns.
To determine the best performing traders, Mizar has built a set of algorithms that look at characteristics of top traders and trading firms (such as concentration and average holding period) and key fundamental drivers of the assets they own (such as return on capital along with several other eligibility criteria.
How does the Mizar Galaxy Fund work?
The Galaxy Fund is designed to create a positive feedback loop, where Mizar attracts more users and liquidity providers to its platform while rewarding our community for their continued support. Participating in the Fund is easy, as users that are seeking exposure to the growth of crypto assets have to provide liquidity in order to be eligible to participate in the Mizar Galaxy Fund. This fund allows individuals to invest in Mizar’s top-performing strategies built by the best traders on Mizar. Each month traders compete on our leaderboard to receive a capital injection from the hedge fund into their trading strategy. Traders who wish to participate with the leaderboard do require to stake their LP on the Mizar farm.
A significant percentage of the platform fees will be allocated to the hedge fund. We expect that the influx of capital to these strategies incentivises traders to better optimize strategies to increase performance for the fund. Strategies built by traders adhere to the same principle of performance fee, thus creating a competitive environment for optimized strategies. Profits earned from deploying the Galaxy Fund capital will go back to the fund/treasury, and it will be used to buy MZR tokens on the secondary market.
This way we consistently maintain the yield of our farm and offset the additional emissions directly benefiting our community. As the next cycle starts there will be more capital available due to the profits made from the strategies, this allows for bigger platform fees in the hedge fund and bigger rewards. This is how the positive feedback loop will result in more users, more LP stakers, more rewards for our best traders and consistently high yields in our LP farm to reward our community
Why are we creating the Galaxy Fund?
Hedge funds have long been a popular choice for investors looking for an alternative investment vehicle. Investors rely on the fund’s visionary founder and teams of analysts to guide their money in the right direction. The best funds constantly seek out the next edge, even if they already outperform the market each year. The problem with traditional hedge funds is that these financial products are not available to anyone and to be eligible people need a substantial amount of capital before a hedge fund even considers taking the capital. This makes it inaccessible for most millennials, therefore they are looking for other opportunities and focus more on actively choosing their own investments instead of passively investing in a broad index.
Active investing resonates with millennials in particular. It allows individuals to invest in specific companies they identify with or have a particular view on, which is increasingly important to millennials who tend to be opinionated about how their investments are allocated. It also provides them with the opportunity to outperform the market average.
Unfortunately, actively investing is time-consuming and hard for most people.
The Galaxy Fund as a solution
We at Mizar concluded that there is a need for a product that focuses on creating modern, actively managed investment vehicles that actually empower individuals to become better investors. So we started the Galaxy Fund.
With the Galaxy Fund, our objectives are simple: help you grow your capital with satisfyingly high returns over the long term, and empower you to become a better investor. To accomplish these goals, we’re building a passionate team of traders that bridge technology and finance.
We believe that the Galaxy Fund not only allows new participants that are just now adopting cryptocurrency-centric investing strategies to gain exposure to the market but also believe that the Galaxy Fund can provide investors with a hedging opportunity.
About Mizar
Mizar is a next-gen trading platform where traders can search for strategies to securely allocate capital or get access to a wide range of trading tools to put their assets in motion. Mizar makes trading simpler and accessible to everyone, subscription-free.
