First, a user must verify their identity through a process called KYC (Know Your Customer) on Blockpass. After this quick verification, the user receives a digital token (KYC NFT), which grants them access to the Kvants AI platform.
Accessing the Dashboard
Upon successful verification (usually taking up to 5 minutes), the user can view the Kvants AI dashboard. This dashboard showcases various investment strategies based on expected returns and the user's preferred level of risk.
Choosing an Investment Strategy
Kvants offers multiple strategies based on underlying assets like Bitcoin, Ethereum, or USDT. Each strategy indicates the potential drawdown, which helps users understand the risk involved. It's important to note that the returns are calculated in the underlying asset, meaning the investment's performance is tied to the asset's market value during the investment period.
Making an Investment
Users select their preferred investment pool, maturity period, and risk level (drawdown) and then invest a certain amount (e.g., $1000). The platform then offers two investment methods:
Centralized Exchanges (CEX)
The funds are pooled together until they reach a predetermined amount (e.g., $100,000) or the investment period closes. The money is then sent to centralized exchanges such as the Binance Institutional account. This approach benefits from high-frequency trading strategies on CEXs and a third-party custodial, CeFu, which manages counterparty risk to safeguard the invested funds.
Decentralized Exchanges (dex)
In this method, users' funds remain in their control but are committed to the chosen strategy. The platform employs smart contracts to trade on DyDx and execute trades on behalf of the user, leveraging the benefits of decentralized finance while maintaining security and efficiency.
Subscriptions NFTs (sNFTs) Investment Tokens
Users receive a digital token representing their investment and any returns earned during the investment period. These tokens can be traded on secondary markets if the investors want to access liquidity before the fund's maturity, providing flexibility. The value of these tokens can fluctuate based on demand, supply, and the performance of the underlying strategies NAV.
Maturity and Returns
Users can withdraw their base investment + profits via the audited Kvants platform at the end of the investment period.
This streamlined process, backed by advanced technology, aims to democratize access to sophisticated trading strategies previously available only to institutional investment firms.