What is the first robo-advisor feature in DeFi?

Today, we will discuss a unique feature of xWIN.Finance version 2 — Robo-Advisor.

Robo-advisor is a service that provides advice and support for investment management on behalf of investors. Currently, it is widely used in traditional finance such as stock mutual funds.

It proposes the best combination of assets (portfolio) according to the user’s risk tolerance. Users only needs to deposit funds and purchase the optimal portfolio, which is easy even for novice investors.

xWIN.Finance Version 2 is the first platform in DeFi to implement Robo-advisor function. One of xWIN’s mission is to “reduce investment risk and simplify asset management for crypto assets” and Robo-advisor is the best way to achieve this goal.

Functions of xWIN.Finance’s Robo-advisor include:
1. Input user’s risk tolerance
2. Input user’s age
3. Input allocation approach

1. Input user’s risk tolerance

For risk tolerance input, there is a gauge from 0 to 100. Users who are willing to take risks should select a number close to 100. Users who are less prone to take risks should select a number closer to 0.

2. Input user’s age

For age input, age is a very important factor when it comes to risk tolerance. In general, the younger the age, the more risk-taking, and the older the age, the more risk-averse.

3. Input allocation approach

For allocation approach, this is about how to analyze the function of Robo-advisor. Currently, there are two approaches. One is Weighted Average Sharp Ratio and the other is Mean Variance Optimization. We will update this blog with more details as they become available.

Robo-advisor will combine above three inputs into a set that is tailored to each individual user. You can purchase this set by using your USDT.

That is a brief explanation of Robo-advisor feature. We hope you enjoy using it.

*xWIN.Finance is a DeFi platform. Please proceed at your own risk.