Introducing DAM

MFHo

Published in

Address Capital

5 min readApr 21, 2021

If you don’t give a DAM… maybe you should.

TLDR:

DAM enables curated, decentralized crypto baskets on Ethereum.
Our mission is to make quality crypto projects (read: not shitcoins) more accessible and promote the benefits of decentralized technology.
DFV is DAM’s first crypto basket. Read more here.
You can participate in DFV through DAM’s website or directly through SushiSwap.

Decentralized Asset Management (DAM) arrives as rising institutional investment opens the floodgates to mainstream crypto adoption. [1]

DAM is a community-focused platform that enables curated, non-custodial and fully-collateralized crypto baskets on Ethereum.

For reference, non-custodial means that DAM doesn’t hold your assets (you do) and fully-collateralized implies that all crypto indexes are backed by at least 100% of the underlying tokens (which you can verify and swap for at any time).

Our mission is to make quality crypto projects (read: not shitcoins) more accessible and promote the benefits of decentralized technology, especially for investors looking to save time researching this fast-moving space.

DAM seeks to achieve this in two ways:

DAM crypto baskets provide easy, diversified exposure to the world’s best performing asset class. [2]
By using Ethereum, you can buy or sell DAM crypto baskets with near real-time settlement while maximizing flexibility, transparency and control.

DAM is dependent on five beliefs:

Crypto exposure is needed.
There is value in crypto projects other than bitcoin.
Finding quality crypto projects is time-consuming and hard.
Crypto baskets can provide passive, de-risked exposure to quality projects.
Decentralized crypto baskets are preferable to centralized alternatives.

The rest of the article expands on the case for DAM and provides additional project background.

THE CASE FOR DAM

Considering crypto exposure in your portfolio is becoming common sense.

Crypto is the best performing asset of the past decade with 230%+ annual returns. [2], [3]
Crypto is held and used by the world’s largest companies such as Tesla, Visa and PayPal. [4]
Crypto is a gateway to new products and business models.
Crypto is a tool for economic empowerment and inclusion. [5]
Crypto adoption is growing faster than the Internet and is still only comparable to Internet usage in the 1990s. [6]

So why not just hodl bitcoin for your crypto exposure?

While bitcoin is unequivocally the most trusted store of value in crypto, that’s all it is.

Bitcoin is no longer a proxy for crypto with notable declines in its correlation with the broader market. [7]

By way of example, blue-chip Ethereum outperformed bitcoin by more than 60% in Q1 2021. [7]

Memes, mania and maximalism aside, certain projects are arguably more attractive to hodl than bitcoin to de-risk and enhance your crypto performance.

Finding these gems, however, is time-consuming and challenging even for crypto natives. Why?

The space is nascent and has significant information asymmetry.
Crypto innovates at exponential rates due the use of open source software.
Token narratives are not always rooted in reality.
Thoughtful project evaluation requires deep technical, operational, governance and business understanding.

Not everyone has the desire, network or expertise to filter through the ecosystem’s thousands of projects to construct, source and manage a portfolio.

Participating in a crypto basekt can help offload this process, and in our view, generate superior risk-adjusted performance.

But relying on a centralized counterparty for your crypto basket isn’t in your best interest, as evidenced by Grayscale’s recent buying restrictions and banks only offering crypto to wealthy clients. [8], [9]

Unlike centralized alternatives, DAM crypto baskets provide participants significantly more control, transparency and access.

We hope the case for a DAM crypto basket is clear and we look forward to receiving your feedback.

DAM PROJECT BACKGROUND

DAM is managed by a growing team of crypto developers, operators, investors and enthusiasts.

We are passionate about facilitating easy, smart crypto exposure to people who are new to the space.

There currently isn’t a DAM token because we don’t believe it’s necessary given basket decision making will take place at the basket level. Any potential changes regarding a token distribution will be discussed with our community.

DAM leverages industry-standard Web3 integrations and smart contracts developed by Set Protocol which have undergone rigorous security audits and our own extensive testing, however, as DAM is new technology, participants should conduct their own due diligence and invest at their own risk.

We strongly encourage all DAM participants to adhere to key management best practices for DAM-supported wallets (i.e. Metamask) as crypto platforms are only as strong as their hodlers’ private key storage.

For the avoidance of doubt, DAM is not an investment advisor and the above does not constitute investment advice.

We will also NEVER ask you for your private keys.

Next steps for us on our journey include:

Developing the community
Launching DAM’s website
Launching DFV, DAM’s first crypto basket

If you are interested in learning more, please join the DAM community here:

To participate, make sure that you’ve set up a DAM-supported ERC-20 wallet (i.e. Metamask) and stay tuned for updates regarding DFV and a formal article on getting started.