Harmonix Finance
Harmonix is a sophisticated platform that brings hedge fund strategies on-chain to generate high yields for investors
Created on 29th June 2024
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Harmonix Finance
Harmonix is a sophisticated platform that brings hedge fund strategies on-chain to generate high yields for investors
The problem Harmonix Finance solves
In the last four years, I've used many DeFi projects. I've noticed that people often lose money due to scams and withdrawing their funds during downturns. Many DeFi projects can't maintain their high returns, so when the market goes down, the risks outweigh the rewards. This makes people hesitant to invest their stablecoins or assets into these projects.
-> To address this we try to solve 2 problems:
- Lack of Hedging Options: The crypto market is highly volatile, and there are limited options to hedge against market downturns. Although there were insurance projects launched in 2020 and 2021, most failed to provide effective protection, leaving users vulnerable when farming liquidity or using DeFi services.
- Beating Market Performance: Many people enter the crypto space hoping to achieve significant returns. This is why they often invest in meme coins rather than top coins like BTC, ETH, LINK, or SOL, as they perceive higher upside potential in meme coins. The yields on top coins, such as the 4% APR offered by Lido, are considered low by more aggressive investors and do not compensate for the risk of price drawdowns, making them suitable only for large investors.
What We Offer
- Diverse Strategy Vaults: We provide a range of vaults based on different hedge fund strategies, allowing users to simply deposit and earn high yield.
- Hedging Vault: Users can deposit ETH and BTC in our hedging vault to protect their assets against market volatility.
Challenges I ran into
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Logic and Code:
We embarked on creating a new DeFi protocol, a concept that had not been explored before. Similar projects that might have offered guidance did not publicly share their code, leaving us with limited resources for research. To overcome this, we reached out to quant teams and market makers who had experience not only with hedge fund strategies like options and delta-neutral trades but also with coding and risk control. We invited them to become our advisors, and two market maker teams agreed to help us. Their expertise has been invaluable in solving some of our critical problems. -
Funding:
As a small team from Vietnam, raising substantial funds was challenging due to our limited visibility in the global market. To address this, I planned a strategic process to build relationships with top builders and VCs in Southeast Asia and the Asia-Pacific region, even before we started coding our project. It typically took 6 to 10 months to establish trust and interest, but eventually, they recognized the potential of our project and invested in us. -
Team Building:
We started with just two members and no funding, raising a significant challenge: how to attract and retain talented individuals committed to at least one year with us. We tackled this by consistently demonstrating our progress on a weekly basis. Once potential team members saw that our product was viable and profitable, they became more interested. We then secured their commitment by offering equity and presenting a clear roadmap. Additionally, we co-hosted offline events with top projects in Vietnam, sharing our vision and attracting developers, business development experts, and marketing professionals who wanted to join and contribute to our team.
These challenges have been formidable, but by leveraging expert advice, strategic relationship-building, and transparent progress sharing, we've been able to overcome them and build a strong foundation for our project.
Tracks Applied (1)
Trading Track
TRADING with Aerodrome and Synthetix
Technologies used
Cheer Project
Cheering for a project means supporting a project you like with as little as 0.0025 ETH. Right now, you can Cheer using ETH on Arbitrum, Optimism and Base.