SMARTER THAN CRYPTO (“STC”) is the world’s first cryptocurrency-only SMARTER THAN BETA tokenized portfolio, and aims to provide a solution to this problem. The portfolio will autonomously maintain a diverse portfolio of up to the top 20 cryptocurrencies by market capitalization. The SMARTER THAN BETA strategy can outperform any index in any asset class by 40% more return and 40% less risk. In order to continue to have an efficient portfolio in regards to return and risk over time, SMARTER THAN CRYPTO’s asset portfolio is adjusted regularly in a process called rebalancing. SMARTER THAN CRYPTO is not a platform nor is it a fund, it is a fully functioning product in the form of a Comingled Managed Account (“CMA”). SMARTER THAN CRYPTO cuts out the middleman and is thus able to offer the lowest fees in the industry.Salus Alpha’s SMARTER THAN BETA strategy has consistently outperformed indexes and their passive index trackers. For the last ten years investors poured significant amounts into index tracker funds, while actively managed funds experienced outflows during the same period. One reason why index funds outperform actively managed funds is due to their low annual fees.
SMARTER THAN CRYPTO has an annual fee of only 0% whereas competing crypto offerings have fees of 3% per year. All crypto offerings built on one of the many recently launched fund platforms will apply their fees over and above those of the platform. SMARTER THAN CRYPTO can offer such low fees because it is independent and automated. Index strategies are a set of rules that an algorithm can act on with no human intervention required. SMARTER THAN CRYPTO is a utility token that is representative of a portion of the total value of the Crix -Crypto index. The initial tokens can only be acquired during the token offering process which is a one off, closed cap offering. The tokens provided will represent a participant’s share of the portfolio. 100% of the total amount contributed during the offering will go directly towards buying the underlying cryptocurrencies. SMARTER THAN CRYPTO is an ERC20 token based upon the Ethereum blockchain. Operating on the blockchain allows for global accessibility, 24/7 trading, transparency, public verification of SMARTER THAN CRYPTO’s holdings and no expensive legacy banking fees.
SMART CONTRACT SPECIFICATIONS
Reasons for Choosing the Ethereum Blockchain:
– Security and predictability (as opposed to, for example, having to run a separate blockchain),
– Use of robust and well-supported clients (Ethereum based tokens can be managed with official Ethereum clients),
– High liquidity (transferable for ether),
– Easier listing on exchanges with infrastructure already in place,
– Ethereum smart contracts enable a very transparent way of offering a liquidation option.
The smart contract complies with the ERC20 token standard and can be used from any compatible Ethereum wallet. The contract code facilitates an ICO crowdsale by specifying a start date and end date so as to restrict certain functions during the ICO period. The token to ether price ratio is adjusted dynamically throughout the sale such that token price tracks $1 (the bonus structure is then applied on top of this). Participants can send ether to the contract directly or via the buy or buyTo functions. The ether purchase amount is used to calculate the tokens bought which are then added to the balance of the participant account. The participant account (the account that is debited with tokens) is the sender account when using the buy and fallback function or the specified address when using the buyTo function and
passing an address as an argument. The smart contract has a two-tier control functionality which gives two controlling wallets different levels of authority. This allows future blockchain development and full on-chain automation without sacrificing the control of fund managers.
TOKEN DISTRIBUTION AND STRUCTURE
There will be no token creation, minting or mining after the ICO period. Tokens will be transferable and tradable once the ICO is successfully completed and the underlying assets have been acquired. Investment can be made in ETH, BTC or LTC. The USD equivalent amount of any ETH, BTC or LTC invested will be locked in at the time of investment according to market rates and considered the participant’s contribution.
SECURITY & TRANSPARENCY
SMARTER THAN CRYPTO has implemented security industry best practices for defense against Sybil attacks and bad actors in co-operation with their team of expert advisors. Strong identity verification and authentication procedures are in place to ensure secure operations. The smart contract code has been thoroughly audited for vulnerabilities, confirmation of operation as described in this White Paper, static and manual analysis of the smart contract, gas analysis and verification of the deployment procedure.
Transparency in SMARTER THAN CRYPTO’s trading activities and current holdings will be ensured through the use of view-only exchange APIs as well as through proof of reserve for non-exchange wallets (this includes both hot and cold wallets). SMARTER THAN CRYPTO will at any stage hold varying amounts of up to the top 20 coins by market capitalization. The majority of each of these cryptocurrencies will be stored in cold wallets with a small percentage of each currency stored in a wallet on their servers so as to facilitate automatic rebalancing. If rebalancing necessitates moving more of the cryptocurrency to these hot wallets this will be done manually via interfacing with various cold wallets – SMARTER THAN CRYPTO’s portfolio manager will be notified ahead of time so as to accommodate this. The weekly rebalancing period affords more than sufficient time for this purpose.