In the last decade, the cryptocurrency trading scene has evolved to become a multi-faceted market, famous for its volatility. Consequently, it has become a complicated place to invest in.
With thousands of cryptocurrencies available today, it can be a full-time job to watch the markets and adjust your portfolio accordingly. In fact, even for the most seasoned of traders, it can be a challenging and exhaustive task to keep up with ever-changing market shifts.
Robo advisors can solve this to an extent. However, this still requires significant input from your side to set the necessary parameters.
Rocket Vault Finance intends to offer a more feasible solution with its product.
Its automated ‘Smart Vault’ can find you the best cryptocurrency trading opportunities at the click of a button. Moreover, this innovative tool can manage your assets in a way that maximizes potential gains and keeps risk to a minimum.
In other words, Rocket Vault Finance can help you utilize cryptocurrencies as a source of passive income – even without expertise in the field.
What can Rocket Vault Finance Do?
Rocket Vault Finance has built an innovative Smart Vault tool that is based on Machine Learning and Artificial Intelligence. All you need to do is deposit money into the vault, and the system will do the rest for you with Zero Human Intervention.
The tool will analyze vast amounts of historical data to identify the best performing pools, eliminate risky pools, find the best entry point and arrive at the optimum position.
In simple terms, these Smart Vaults have the potential to replace an experienced fund manager and achieve value investing with crypto. Although the product was launched just over a year ago, Rocket Vault Finance has managed to yield an APY of 100%.
How Does Smart Vault Work?
Rocket Vault’s unique approach focuses on developing a system that makes it possible to trade in ways beyond human abilities. Currently, RVF gives you access to over 700 stablecoins to build a diversified portfolio.
Here is how Smart Vaults achieve this.
Using Real-Time Data
Smart Vault comes equipped with a real-time data fetching engine that interacts with global cryptocurrency exchanges through endpoint APIs. The platform is hosted in Hyperscale, and as such the Smart Vault can access market data almost instantaneously.
This makes it possible to execute trades as soon as an opportunity arises, using algorithmic tools that find the fastest connection between the exchanges and trading protocols.
Predicting Market Movements with AI/ML
Smart Vault’s important underlying concept is the advanced AI/ML trading system that relies 100% on market data. As noted, RVF currently supports over 700 stablecoins on the platform.
The process is carried out in the following steps:
- The AI engine scours through vast volumes of data and analyses it using data modeling and statistical analysis.
- The ML will then apply pattern recognition and predictive analysis to effectively predict the best times to enter the market and which assets to trade.
- Smart Vault leverages LSTM-based neural networks to spot volume anomalies and time-series patterns.
- The system also categorizes potential tokens that can be moved into a monitoring list.
Asset Rebalancing
Rocket Vault Finance employs an asset balancing feature that manages user funds via pools. It consists of a Treasury and a Monitoring Engine.
Here is a quick look at both these technologies:
Treasury Management Engine
The Treasury serves as a reserve to ensure that any withdrawal requests can be processed at any given moment. It has been equipped with the following functionalities:
- To identify how much to invest in each token based on available volume.
- Keep tabs on the reserved amount to be kept in the Treasury to process withdrawals
- Find out the percentage of profits to secure in different cryptocurrencies.
- Communicating the data to the blockchain-based Smart Contract in order to distribute the rewards.
Monitoring Engine
As the name applies, this plays the role of monitoring the existing orders and dynamic decision-making processes to adjust trades based on market conditions. In effect, a monitoring engine can do the following:
- Tracks every buy and sell order executed.
- Traces the executed orders to calculate the optimum sell order price.
- Readjust orders corresponding to the token’s performance.
RVF Data Sets
In order to develop a fool-proof system, RVF has built a training model that includes two phases, and consequently – two different data sets.
- Training data set was sourced from partnerships with multiple cryptocurrency exchanges such as Binance and Bitfinex, using APIs.
- Testing model is the set of data that is being used to cross-check whether the system comes up with the correct output or not.
Scalable System
As is evident, RVF has designed a well-thought-out system to make trading easier. It has also made efforts to ensure that its structure is scalable and works for both retail as well as institutional traders.
Unlike other trading platforms in this space, RVF does not offer a watered-down version of its product to retail investors. Instead, the same level of expertise is applied to all traders, regardless of the size of their investment.
In addition, RVF has also implemented a cap on permissible investment funds during its private beta program. The platform slowly increased the cap on deposit limits to ensure that its strategies adapt based on the inflow of funds.
RVF Token
Following the lead of other crypto-related platforms, RVF has also launched its native ERC-20 utility token.
The coin has a limited capacity of 100,000 and can no longer be minted. It is designed to lock up tokens in a bid to drive up the price of the digital asset.
Investors also have to fulfill a few conditions to access the RVF token – such as making a minimum contribution to two ETH coins to participate. If, for example, you hold 50 RVF tokens, you will be eligible to get a full refund of your initial investment over time.
Holding an RVF token also gives you access to reduced fees on the platform. These discounts will depend on the subscription model you have chosen.
RVF Subscription Models
At the moment, RVF offers two different plans – one for retail clients and another for institutions.
The Retail Subscription Model is free – meaning there is no management or yearly commission.
Other notable points include:
- No KYC until you hit $10,000 in tradable funds
- Rewards are compounded automatically
- If the RVF token balance is not maintained, 5% of profits will be deducted
- A small percentage of profit is deducted towards fees
The Paid Institutional model includes:
- 2% management fee
- 5% of profits as a fee per year
- Rewards are locked for a minimum one-year duration and distributed quarterly henceforth
- Pay in RVF tokens and save 0.5% on fees
- Close the account any time
The Verdict
The team behind RVF has managed to find a gap in the cryptocurrency trading scene – and has subsequently crafted a unique product to target it.
The 100% APY achieved thus far is undoubtedly notable – but it is important to remember that the project cannot always guarantee the same results indefinitely
That said, the platform is still relatively new and could benefit from more transparency, especially when it comes to fees and commissions.
Regardless, the Smart Vault technology has promising potential and can be a useful tool for both beginners and experienced traders. Much like any other investment product, ensure that you do your homework and consider the risks before taking the plunge.
The post What is a Smart Vault? Taking a Look at Rocket Vault Finance appeared first on Blockonomi.