Important information on order placement due to high demand
Place the order with GTC (Good-til-cancelled) validity or until the endof the next day. Otherwise, your bank will automatically delete the order. Theauction mostly takes place once a day between 10 and 12 o'clock CET.
Notice: We do not receive any commission from Flatex for the brokerage!
Important information on order placement due to high demand
Place the order with GTC (Good-til-cancelled) validity or until the end of the next day. Otherwise, your bank will automatically delete the order. The auction mostly takes place once a day between 10 and 12 o'clock CET.
Returns are generated through so-called staking rewards. These are, like tolls, fees on the usage of the network i.e., transacting on a given blockchain, in exchange for providing the digital infrastructure needed to secure a proof-of-stake blockchain. Depending on the network, these usually consist of transaction fees levied on network participants and newly minted crypto assets (both coins in the language of the blockchain). Of the proceeds generated from staking, up to 20% of the staking returns is transferred to a charity organization.
The portfolio consists of individual proof of stake crypto assets for which staking rewards are generated. The assets in question are selected based on their expected staking rewards, their market capitalization, efficient tradability (spot tokens, perpetual swaps for hedging) and the future fundamental attractiveness of the underlying blockchain (practical usage, transaction costs and efficiency). In a strictly defined selection process, we continuously evaluate and select Proof of Stake crypto assets to provide investors with an attractive portfolio in terms of return opportunities and diversification.
The details of the investment process are a company secret. Roughly outlined, we select from the universe of proof-of-stake-based crypto assets those that (1.) can be traded on the platforms we use, (2.) are not stablecoins or privacy-focused crypto assets, and (3.) have passed our AML and anti-fraud filters. In a second step, we observe on-chain the growth processes of the respective crypto assets and select those that match our investment hypothesis.
The market risk of the staked crypto securities in the portfolio is fully hedged through so-called perpetual swaps (derivatives). This effectively and largely eliminates the market risk caused by price fluctuations in the cryptocurrency market, so that volatility, both upwards and downwards, does not affect the value of sustainliquid's portfolio. Perpetual swaps are derivative financial instruments denominated in futures with the shortest remaining maturity on the respective underlying assets. By effectively hedging the market risk, a loss due to downwards market movements is significantly reduced.
In addition, the USD-EUR exchange rate risk is also hedged, as the liquidity of the hedging instruments is currently only denominated in USD and not yet in EUR.
Investors can conveniently buy sustainliquid on the Stuttgart Stock Exchange at a daily auction through their online broker or bank. In return, an investor receives the certificate at the ask price directly into his securities account. In the background, the invested sum is forwarded via Baader Bank to the investment fund (in the form of a Special Purpose Vehicle = SPV), in which the investments into the crypto space are "physically" executed.
The investment fund (in the form of an SPV) is legally located in the Cayman Islands, as the necessary legal and regulatory framework for financial instruments investing in crypto assets via a traditional exchange is not available in Germany.
When staking a certain amount of capital, usually as native crypto assets of the blockchain to be staked in, is locked up in the network either directly or indirectly in so-called validators serving as a collateral. These validators are allocated blocks for validation based on their share of the overall capital staked in the network. For successful validation, they receive remuneration, the so-called staking rewards, which - depending on the network - usually consist of fees from network participants transacting and newly minted crypto values (both coins in the language of the blockchain).
Proof of Stake (PoS) is a common and currently, the most advanced consensus mechanism for blockchain networks in terms of scalability and sustainability, used to validate data updated on the blockchain. This regulates the way new blocks are added to the existing ledger.
Unlike Proof of Work based blockchains (e.g., the Bitcoin blockchain), where many so-called prospectors (or miners in the language of the blockchain) simultaneously compete to compute a control value (hash value in the language of the blockchain), in Proof of Stake networks validators are randomly selected based on, among other things, their share of the overall capital locked up to secure the network (the so-called "stake"). This also secures a predictable steady inflow of returns, a feature of our product, sustainliquid.
As a new alternative asset class, the operational costs of asset management in crypto are currently fundamentally much higher than in established asset classes. Even passive tracker products on crypto assets sometimes charge up to 2.5% management fee, regardless of an extreme volatility and performance, and without the added value of an active asset management approach.
Our waiver of a management fee in favor of a pure performance fee, which is entirely unusual in the market, should first and foremost be understood as our own absolute financial and commercial confidence in our performance promise: We only earn if investors have a better alternative to negative interest rates and do not have to choose between negative interest rates and a management fee. We are fully aligned with our investors' interests via the full risk assumption of our substantial fixed costs.
The product strictly follows the criteria of the SFDR Art. 9 standard. The legal form of the product, an exchange traded instrument, is not legally subject to SFDR and, as such, cannot be marketed as an Art. 9 investment. However, the team of sustainliquid is not concerned with the signal effect, but with the concrete implementation of the ESG standards. In this respect, sustainliquid is voluntarily subject to the Art. 9 requirements.
At sustainliquid, a social contribution is made in addition to an environmentally friendly one. With GiveWell, we have found a non-profit organization that is based on a quantitative approach in the distribution of its donations. Up to 20% of the generated staking revenue is donated to GiveWell's Maximum Impact Fund.
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With sustainliquid you invest in the infrastructure of the blockchain, that is shaping the internet of the future 'Web3'. And all with the good conscience of acting ecologically and technologically secured.