1. Trend Token Introduction
Trend Tokens allow for anyone to gain exposure to a dual momentum trading system acting on a portfolio of tokens, simply by holding the Trend Token in their Metamask or Ledger wallet. Each Trend Token is 100% backed by its underlying assets. To purchase a Trend Token, supply one of the assets in the portfolio to the Trend Token pool. Send a Trend Token back to the pool to redeem a portfolio token of your choice. You can follow the blog here for more detailed steps blog.trendtokens.com/how-to-buy/.
If a token, such as BNB, is in a strong uptrend and therefore desired in the Trend Token portfolio, there will be a reward for supplying this asset and a fee for redeeming it. If the market turns and BNB is no longer desired, there will be a reward for redeeming this asset and a fee for supplying it. This creates a potential arbitrage opportunity that incentivizes market participants to keep the pool's allocations consistent with the dual momentum trading strategy.
An automated dual momentum trading system will update the deposit and redeem fees or rewards based on its strategy. Rather than the pool of assets incurring trading fees internally by interacting with a DeFi protocol such as PancakeSwap, the fees are passed on to the users via the rewards for depositing and redeeming assets as desired.
2. Portfolio Options
There will be types of Trend Tokens, each with a different portfolio theme. This is similar to the different types of portfolio options offered for Trendbot and Marginbot. To begin, we will offer Trend5 with others to follow.
- TREND5: Portfolio of USDT, BNB, and 3 top tokens by liquidity on PancakeSwap.
- TREND8: Portfolio of USDT, BNB, and 5 top tokens by liquidity on PancakeSwap.
- MARGIN5: Portfolio of USDT, BNB, and 3 top tokens by liquidity on PancakeSwap, with borrowing abilities.
- Trend-BrkO: Portfolio of USDT, BNB, and 0-5 tokens making new all time highs out of the highest 10-20 liquid tokens on PancakeSwap.
In the future, borrowing capabilities will be included in Trend Tokens to support margin exposure similar to Marginbot.
3. Benefits
Trend Tokens provide a variety of advantages over trading bots that execute trades on independent user accounts on centralized exchanges.
- User-Friendly: Simply connect your Metamask account to dualpools.com/trendtokens and buy or sell Trend Tokens with BNB or any token currently in that Trend Tokens portfolio. No need to create an exchange and trading bot account, connect the two via API’s, configure bot settings, and monitor the bots actions to make sure your account is trading properly. Redeem and performance fees are also pre-programmed to come out of the Trend Token price so no separate transaction is required to pay for fees.
- Tax Advantages: Most countries around the world only consider the sale of a cryptocurrency as a taxable event. Since all you have to do to gain exposure to the dual momentum trading system is hold Trend Tokens, you may not have to pay taxes for many years until you decide to sell. Upon sale, you will likely be subject to capital gains taxes which often have tax advantages over business income when a bot makes frequent trades on your account.
- Passive Interest: Every time someone buys a Trend Token, a flat fee is paid to the Trend Token Pool which increases the price of a Trend Token, providing you with passive interest. Furthermore, the Trend Token has the ability to supply holdings to Dual Pools to earn borrow interest which further increases the value of Trend Tokens as you hold it.
- Minimal Restrictions: Many countries around the world are banned from Binance and many more are banned from Binance Margin Trading. Since Trend Tokens are decentralized and live on permissionless blockchains, you do not need to complete KYC or worry about your region being restricted.
- Decentralized: You no longer need to trust a centralized third party holding custody of your assets. All of the operations of Trend Tokens are pre-programmed in immutable code (except the signal generation, more information below) and deployed on the BSC blockchain.
- Arbitrage Opportunities: Besides simply holding Trend Tokens to gain exposure to the dual momentum trading system, you can also earn rewards for depositing tokens the Trend Token Pool desires (in an uptrend) and redeeming tokens the Trend Token Pool does not want (in a downtrend).
- Earn XTT: You may also choose to stake Trend Tokens in Vaults to earn the Trend Token governance and utility token called XTT. With this token, you will earn a discount when buying or selling Trend Tokens which will further increase your potential arbitrage opportunities.