Kapex Summary
Kapex is the decentralised financial protocol providing users access to innovative DeFi instruments and derivative assets enabling full market participation for potential superior returns.
Features of the project
- Favourable market conditions coupled with increasing customer demand enabling users to take advantage of this new opportunity.
- Innovative tradable assets, including:
- exotic financial instruments;
- crypto-assets;
- commodity assets.
- Detailed financial analysis, demonstrating a robust business opportunity.
- Low level of competition – allowing users to take advantage in this growing sector.
Kapex Goals
- To create market access to facilitate trades in new asset classes.
- To expand investment opportunities for market professionals and individuals, and gap-fill market deficit.
- To provide a long-term ability to generate cash flow.
- To create opportunities for further development of the protocol.
- To re-invest in strengthening positions in various functional areas (including expanding the list of trading assets)
- To Eliminate Slippage and Impermanent Loss that gives the opportunity to earn without hidden losses.
Risk-free and quasi-risk-free assets which previously had a fairly high yield in the World are becoming less attractive. This is confirmed by a decrease in deposits’ interest rates; a reduction of profitability of fiat market as well as lower yields of investment insurance.
Maintaining this trend will lead to the probability that in 2020-2021 users unsatisfied with current returns, are expected to begin actively searching for alternative investment options.
The increase in activity for the search for new financial instruments will occur on the crypto market.
- Legal barriers for entrance of the users in International markets.
- Growth of uncertainty in international markets amid tightening of monetary policy of key regulators.
- High level of weighting on foreign markets.
- Currency and transaction risks.
This follows that the financial market is projected to increase the demand for new classes of financial instruments. The main requirement for such financial instruments will be the possibility of obtaining higher returns at a given level of risk and absolute decentralisation.
Against the backdrop of growing demand for such financial instruments a significant increase in the "risk appetite" for users is anticipated. Traditional assets (spot and futures) cannot meet the needs of users, due to the risk premium reduction.
Reduction of the attractiveness of traditional financial assets occurs on the background of the emerging long-term trend of growth of financial instruments investments by users. According to the results of 2020 the volume of placement of money in the Global stock market amounted to $89.11 trillion Market Cap.
Users are becoming more confident in the stability of the economy which enables them to direct savings to more risky assets. Thus, appetite for risk and profitability are increased. About 61% of owners of individual investment accounts expect a target profitability level of more than 21% per annum.
The change in the class of assets will play a decisive role in the growth of real incomes of the crypto users. This indicator has been increasing for the last 8 months despite the rise of bitcoin and leading altcoins. The reason is that decentralised finance brings in ten times more annual interest than holding classic cryptocurrencies. Since early 2020 traditional crypto market cap has lost about 18 percentage points. At the same time Locked crypto in DeFi has Increased by 194% and 10,000% in 2020. The growth in investments that is observed now will change the situation which in turn will trigger mechanisms for further increase in investments in new asset classes. Indicator of demand for the assets class will be the yield of the asset.
Current situation
The risk premium of the developed markets is reducing against the background of the decreasing cost of risk and monetary policy of regulatory bodies.
Centralised market risk premium demonstrates high volatility and negative returns, which does not meet users' expectations.
The spread between the yield of classic deposits is declining, which indicates a reduction in the opportunities for obtaining additional income.
Conclusion:
I. Decrease in profitability of world financial markets encourages users to look for new sources of income.
II. Alternative instruments with increased profitability are expected to have an increased demand in the Global financial market.
III. Lack of high-yield instruments on centralised markets.
Kapex Goals
Kapex project team is working on the development of a new participant in the Global financial market which is one of the solutions to meet the demand for high-yield assets.
Kapex is decentralised financial protocol providing users access to innovative exotic instruments, derivative assets and DeFi assets. Enabling full market participation for potential superior returns. The main goal of the project is:
- To create market access to facilitate trades in new asset classes.
- To expand investment opportunities for market professionals and individuals, and gap-fill market deficit.
- To provide a long-term ability to generate cash flow.
- To create opportunities for further development of the protocol.
- To re-invest in strengthening positions in various functional areas (including expanding the list of trading assets).
