Pen-X Documentation
Search…
⌃K
📉

Pension Fund Strategy

The Pen-X Pension Fund is broadly diversified across on-chain assets, using yield farming and volatility-controlled strategies to achieve long-term, stable returns in all market environments.
The main aim of our Pension Fund strategy is to manage the portfolio's exposure so that the volatility of our portfolio is as low as possible compared to the crypto market.
To do this, the Pen-X Protocol increase or decrease the exposure to risky crypto-assets, depending on the 30 days historical BTC volatility.
If the volatility increases, the Pen-X Protocol shifts the portfolio to safer investments like stable coins. On the other hand, the fund strategy automatically increases weights on risky crypto assets if the volatility goes down.
While individual investment strategies are developed, maintained, and implemented by the Pen-X Investment Committee and voted on by the DAO Community.
Everything we do at Pen-X is 100% backed by the underlying assets and redeemable at any time, which keeps employees' risks low and rewards as high as possible.

The Fund Principles

Here are four reasons why the Pen-X Pension makes the perfect building for any web3 worker:

1. Simple & Passive

Although DeFi strategies are complex and constantly changing, investing in DeFi should be simple. Pen-X's DAO-managed funds provide direct, zero-maintenance exposure to the market. It's as easy as sign-up on our website.
The Pen-X Protocol takes care of the rest, from managing payments with your employer to ensuring your capital is optimally deployed and 100% backed by the underlying assets at all times.

2. Long-Term Stability

While most funds focus on specific asset classes, Pen-X hedges against the market swings by diversifying capital across a broad range of assets and strategies. These include token baskets, yield farming strategies and volatility target strategies to achieve long-term, stable returns in all market environments.
For the first time, you can invest in crypto with true peace of mind, without the fear of missing out on investment opportunities or need to day trade / constant rebalancings.

3. Low Cost & Transparent

Pen-X offers greater transparency than traditional funds, which report their holdings quarterly. Because Pen-X funds are invested entirely on the blockchain, all positions are 100% auditable to the public in real-time.
Critically, all fees are also charged as blockchain transactions, so "hidden fees" are literally impossible.

4. Democratic

Our strength comes from the collective community. Pen-X is controlled by the people it serves, so our products are always built to benefit the customer.
Dao contributors are drawn from an impressive pool of finance experts, Web3 engineers, and DeFi strategists. Pen-X collectively exploits the rich data available to investors in a way no individual could.