ADAM - Advanced Digital Asset Management

Know the difference of what you are trading. Why? Because every instrument has a different set of incentives behind it for both the provider of it, and the users.

CFD: Contract for difference. CFDs are synthetic contracts to exchange the difference in value of a financial instrument between the time a CFD is opened and the time it is closed. You never trade the real asset. CFDs are quite similar to spread betting in that you can bet on a financial asset's price movement without actually needing to own the real asset.

Typically CFDs are offered by online brokers and issued by them or liquidity providers who are similar to bookmakers in the betting industry. Meaning, losses of traders in CFDs are usually wins for the providers. CFDs have overnight charges and trade at high leverages which makes them prone to losses by inexperienced users. Most people who trade CFDs lose.
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Spot: This is the "real thing". When you buy spot you actually buy the real BTC or the real stock and not any type of synthetic or financial derivative of it.

Typically spots are bought to hold the real asset.
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Future: Here you are trading a promise basically, a contract and not the real asset. A futures contract is a contract between 2 parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price and at a specified date in future (expiration). On expiration Futures contracts are settled meaning payment and then delivery would take place depending on the future is cash settled only or with the real underlying commodity. In Crypto you also have futures that do not expire at a specific date but continue perpetually, which is why they are called perpetuals. Futures can trade above or below the spot price (Backwardation/Contango) and normally converge on expiration, while on perpetuals the offset from the spot price is done through funding rates which are paid or charged to long or short holders of the perpetual depending on the total positioning in the perpetual.

Typically Futures are traded for hedging purposes.
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Make sure to study what instrument you are trading, spreads, holding costs, counterparty and match this with your actual needs and intentions first. This can save you a lot of trouble, headaches and most importantly prevent losses.

lets talk further about learnings from the Terra/Luna/UST collapse:

2. takeaway, at the first sign of problems (1st depeg on sunday) get out immediately or take precautions to be able to hedge, prepare limit orders on the perpetual short on the cex, and make sure to have enough margin there to be able to trade the necessary position size. Do not hope, do not wait but act - immediately.

Time to talk about learnings from the Terra/Luna/UST collapse:

TAKEAWAY NO. 1

All pegs eventually break.

Remember that!
Actually, every "old hand" on the stock market sticks to this rule after seeing what happened to the Bank of England by George Soros.

When an experienced stock market trader hears peg, he or she automatically thinks of how to attack it, because once cracked the peg breaks all the way through, and there is a lot of money to be made with these type of market moves.

Unfortunately too many, myself included, were too naive about the validity of Terra.

Clearly, that is over now, so make sure to know that no peg ever in all history of finance has held, not a single one!

This has very little to do with Crypto or DeFi really, and has also been confirmed multiple times in Crypto by now, all algo-pegs have basically died together with the UST de-peg, from Tomb to Cro.

So take it as a cardinal rule, stay away from pegs, once and for all.

What is wrong with the picture below? (This post we released on LinkedIn two month ago already! I guess we were right 😉)

There are numerous CeFi companies on there that promise high returns which in my humble opinion are not really achievable in the current market.

What does that mean?
It means these companies are either ponzies or they take crazy risks which they do not disclose to achieve these returns.

Since they are typically a blackbox you have no on-chain visibility about their transactions and that is exactly how Celsius gambled away customer funds, BlockFi needed a loan of several hundreds millions and many other similiar companies failed or stumbled recently all over the globe.

What do we learn?
There is a German saying:
"everyone cooks with water"

If you want to avoid taking stupid risks, that are highly likely going to cost you a lot of losses, accept that the grass is NOT greener on the other side. Stop falling for honeypots.

Work to educate yourself and/or cooperate only with such players in the market that have demonstrated their competence and give full transparency about what they do, which can be Individually checked at any time.

That is the true power of blockchain - basically every player in the market is forced to play with integrity and competence and not with with fake promises and deception.

It will take us some time to get there, but it is inevitable.

The composability in DeFi is absolutely stunning!

You can literally create your own recipe to interact with numerous protocols and do a number of different type of financial transactions and wrap it all up in a single TX.

What that means for you? the efficiency and accessibility of the financial world, and bottom line the ability to generate yield will continuously become more accessible to you and more and more people all around the globe easier than ever before.

If this sparks your interest, we are more than happy to bring you up to speed!

P.S.
“composability” refers to the interoperability of components within a design system. A more composable system allows different elements to work together in different combinations.

Why do we love what we´re doing?

-In space our task of acting as a provider can be seen as the task of a bank in traditional world.

-Why? Because we do not buy and manage a portfolio of or like e.g. .

-We receive transaction fees from millions of users exchanging tokens and coins.

*We are the bank of the future
earning transaction fees today!*

Historical vs S&P500 🤯

If you would have initially invested $100k at 01.09.2021 you would have seen above returns with (blue) and S&P500 (black).

The Fallacy of Too High Returns:

Something i keep seeing over and over again throughout the almost 2 decades in trading now, is the promise of high returns by some actors in the market without the ability to properly explain the mechanics and method they achieve this return with.

"oh a real trader can easily make 50% in a year, and more"... yea right...a real trader can also show how he or she is doing it, right?

Therefore, if all you see is a promise of high return without substance (or better proof) and what you end up is losing control and visibility of your funds to participate and basically send your money into a "Black Box", then expect nothing less but to lose it all.

As Tony Robbins said "you get what you tolerate".

If you tolerate this level of shortcomings on your own part, what do you expect you will get back in return?

Exactly = shortcomings in the results!

Please don’t be naive and do your homework properly so others with bad intent or simply stupidity don't take your hard earned money from you.

What is Pseudo-Delta Neutral Hedging?

This is a strategy where you have equal long and short positions on-chain so that your net position remains market neutral.

Through a combination of long positions and short borrows you can create a total position that is fully market-neutral.

Now as the price of the Non-Stable-Asset moves, the position is exposed to impermanent loss (see picture below).

Therefore the most important part of this strategy is the appropriate re-balancing method.

Comparison to ?!

When depositing money in a bank, one basically lends funds to the . In return, the bank pays .

Liquidity mining provides to a which enables users to transact. In return the users pay a swap fee to the Liquidity Miners.

Why does Liquidity Mining create profits?

are rewarded with transaction fees for the provided in specific liquidity !

Historical vs Bitcoin!

If you would have initially invested $100k at 01.09.2021 you would have seen bellow returns with (blue) and (orange).

How to consistently generate return in this environment Part 2 ?

Delta-Neutral Funding Arbitrage!

In this strategy either spot-future arbitrages ("Cash & Carry Arbitrage") or future-future arbitrages ("Carry Arbitrage") are utilized.

In both cases one long/buy side is matched with the exact same notional quantity of short/sell side to be delta-neutral.

This way both sides of the trade create a delta–neutral position as combined they cancel each other out and leave no directional exposure which ensures that the risk of price movement is mitigated.

Yield is generated either from funding rates that are collected from the future or from the price convergence of the future vs. the spot price that is captured.

The best part is, this strategy can work in both bull and bear markets structured in different ways.

How to consistently generate return in this environment?

With delta-neutral farming!

Provide Liquidity on a decentralized exchange while hedging the non-stable exposure to be market-neutral, meaning indifferent to price movements and risks.

How do you make money this way?

You earn from providing liquidity to a smart contract that enables users to exchange one token with another for a transaction fee that you collect and you hedge with lower costs of hedging than your earnings.

What is DeFi and Liquidity Mining? Why does Liquidity Mining create profits?

is a new financial system based on achieved by technology.

DeFi is the financial system of trust and eliminates middle man (e.g. ) via " ".

DeFi enables effortless, real-time and low cost transactions.

Liquidity mining is a mechanism wherein participants provide some of their crypto into various .

What makes our strategy low risk? 🧐

We hedge against volatility of non-stable which we are exposed to and receive as rewards for providing ! 🤯

It's now easier to send ADAM - Advanced Digital Asset Management a message.

The team behind... Alexander Douedari

-15 years expertise in
-Specialist in Market Neutral Trading Strategies
-In since 2015

The team behind... Sören Hinkel

-10 years expertise in Project Management & Consulting
-Specialist in Governance and Software Implementation
-In since 2017

The team behind... Markus Nechwatal

-10 years expertise in & eCommerce
-Specialist in Networking and Negotiations
-In since 2015

What is ADAM?
- A Mission Statement

ADAM utilizes the
possibilities of the
decentralized finance space
( ) and makes from
market-neutral strategies
universally accessible!

- ADAM takes advantage of
opportunities in the market!