On the defichain, an increasing number of assets can be bought. These assets can be, for example, shares or government bonds. Each asset has a certain risk/return ratio. Some investors buy certain tokens without knowing how these tokens affect the risk/return ratio of the entire portfolio.
The following chart shows a simple example portfolio consisting of 2 assets.
Share A is an asset with little return and little risk, conceivably a government bond. Share B is an asset with more risk and more return, conceivably a share such as Netflix. If the investor only holds one asset at a time, he is completely dependent on one asset, so the risk also increases. Along the curve are different weightings of the overall portfolio, which represent different weightings in terms of risk/return.
The average investor probably does not know the risk/return ratio of his portfolio and puts together a portfolio, which is represented here by the green dot. This is where the CFP comes in. The user can insert his address and the website creates the risk/return ratio for the user. Now the investor can adjust and rebalance his portfolio and take a portfolio that lies along the blue line.
The investor has for example two options, it is conceivable to keep the risk the same and go vertically upwards to the blue line. This increased the expected return with the same risk. The website will return the needed asset allocation to do this.
Another possibility is to move horizontally to the left, thus lowering the risk with the same expected return. Depending on the market situation, one can adjust one's portfolio and control the risk/return ratio.
This is also called "Modern Portfolio Theory".
if you would like to learn more and see a live demo, feel free to watch the video. (https://vimeo.com/797092908)
How will the fund be spent?
The funds are taxed and then used for the operation of the website and development.
I have almost finished the website and can go straight to the start if the CFP is successful. I have already put a lot of time and work into the development and if it is accepted, that would be a very motivating signal for me to continue. A first impression of the functionality can be gained in the video.
How does this CFP benefit the DeFiChain community?
The idea is to give an average investor a more accurate picture of the risk/return ratio of the portfolio. It is possible to adjust one's own portfolio according to Modern Portfolio Theory. If desired, further functions can be added, please feel free to give me feedback or contact me directly via Twitter (lukasgw)
Overview
Describe the purpose
On the defichain, an increasing number of assets can be bought. These assets can be, for example, shares or government bonds. Each asset has a certain risk/return ratio. Some investors buy certain tokens without knowing how these tokens affect the risk/return ratio of the entire portfolio.
The following chart shows a simple example portfolio consisting of 2 assets.
Share A is an asset with little return and little risk, conceivably a government bond. Share B is an asset with more risk and more return, conceivably a share such as Netflix. If the investor only holds one asset at a time, he is completely dependent on one asset, so the risk also increases. Along the curve are different weightings of the overall portfolio, which represent different weightings in terms of risk/return.
The average investor probably does not know the risk/return ratio of his portfolio and puts together a portfolio, which is represented here by the green dot. This is where the CFP comes in. The user can insert his address and the website creates the risk/return ratio for the user. Now the investor can adjust and rebalance his portfolio and take a portfolio that lies along the blue line.
The investor has for example two options, it is conceivable to keep the risk the same and go vertically upwards to the blue line. This increased the expected return with the same risk. The website will return the needed asset allocation to do this.
Another possibility is to move horizontally to the left, thus lowering the risk with the same expected return. Depending on the market situation, one can adjust one's portfolio and control the risk/return ratio.
This is also called "Modern Portfolio Theory".
if you would like to learn more and see a live demo, feel free to watch the video. (https://vimeo.com/797092908)
How will the fund be spent?
The funds are taxed and then used for the operation of the website and development.
I have almost finished the website and can go straight to the start if the CFP is successful. I have already put a lot of time and work into the development and if it is accepted, that would be a very motivating signal for me to continue. A first impression of the functionality can be gained in the video.
How does this CFP benefit the DeFiChain community?
The idea is to give an average investor a more accurate picture of the risk/return ratio of the portfolio. It is possible to adjust one's own portfolio according to Modern Portfolio Theory. If desired, further functions can be added, please feel free to give me feedback or contact me directly via Twitter (lukasgw)