Tetraguard Crypto Basket: A Safe Haven During Market Volatility

As an expert crypto analyst, I can attest that market volatility is a constant reality in the world.

Tetraguard Crypto Basket: A Safe Haven During Market Volatility

As an expert crypto analyst, I can attest that market volatility is a constant reality in the world of cryptocurrency. The sudden surge and fall of prices have become the norm, making it increasingly challenging for investors to protect themselves from sharp price swings. Whether a bull or bear market, the Tetraguard Crypto Basket (TETRA) has been hailed as an innovative solution that can mitigate the risks of investing in the volatile world of cryptocurrencies.

TETRA is a unique basket of cryptocurrencies that offers a blend of stability, growth potential, and passive income generation. TETRA comprises four coins: WBTC (Wrapped Bitcoin), WETH (Wrapped Ethereum), WPAXG (Wrapped PAX Gold), and QUAD (Quadron Fee Coin). Each coin has unique properties that make it an ideal addition to a diversified crypto portfolio.

WBTC is a tokenized version of Bitcoin on the Ethereum blockchain, offering the benefits of both the Bitcoin and Ethereum networks. It is an excellent choice for investors who want to benefit from the growth potential of both networks. WETH, on the other hand, is the second-largest cryptocurrency by market capitalization and is known for its smart contract capabilities. 

WPAXG and the QUAD act as hedges.  WPAXG is a tokenized version of the gold-backed stablecoin PAX Gold, providing investors with exposure to the value of physical gold. QUAD is a coin that collects a 3% transaction fee on all round-trip trades within the basket, distributing the fees pro-rata among the holders of the TETRA.  Two examples of TETRAGUARD’s benefits:

  • During a turbulent month from November 1, 2022, to December 1, 2022, the cryptocurrency market experienced significant losses with BTC and ETH prices falling by 20%. However, WPAXG rose by the same percentage, and as a component of TETRA, it effectively balanced the losses, keeping the overall value of the TETRA basket unchanged. The diversification provided by the TETRA basket and, specifically, the counterbalancing effect of the gold-backed PAXG, which is often considered a safe-haven asset during times of market turbulence, contributed to this stability.
  • Subsequent to the volatile month, the cryptocurrency market began to recover, with BTC and ETH surging by an impressive 40% in the following five months. The uptick in the market positively impacted the TETRA, resulting in an 11% increase in the overall value of the basket, hedging a potential backslide.  This growth demonstrates the potential rewards of a diversified crypto basket, as the TETRA basket was able to benefit from the rising prices of BTC and ETH, with the risk posed by their earlier downturns mitigated by PAXG and QUAD

I believe that solutions such as TETRA will become increasingly important for investors seeking to hedge their crypto investments and increase the probability of achieving long-term financial success. Investing in cryptocurrencies can be highly risky, but diversifying one's portfolio can help mitigate that risk.

In recent years, the cryptocurrency market has evolved significantly, and several new and exciting developments have emerged. One such development is the rise of decentralized finance (DeFi) protocols. DeFi refers to a set of financial protocols that enable individuals to access financial services without intermediaries such as banks. DeFi protocols use blockchain technology to create trustless financial systems that are transparent, secure, and accessible to anyone with an internet connection.

DeFi protocols have disrupted traditional finance by providing access to financial services that were previously unavailable or limited to certain individuals. Some of the popular DeFi protocols include Uniswap, Compound, and Aave. These protocols enable users to borrow, lend, and trade cryptocurrencies without the need for intermediaries, resulting in lower fees and faster transactions.

As one of the world’s first DeFi ETFs, keep an eye on Tetraguard and it’s potential to deepen the $10tn ETF industry’s foray into virtual assets.

About SmartBlocks

Mark Fidelman

Here at SmartBlocks, we believe it’s time to democratize currency and make it available to anyone, anywhere, anytime.