What is shüts Wave?
Shüts Wealth is laying down the foundation for strategy-based investing in traditional markets as well as in the crypto space with our new and upcoming crypto asset class. Strategy-based investing can help reduce drawdowns and increase your odds of making a profitable investment. SWAVE, or shüts Wave, uses the principles of strategy-based investing for profitable crypto investments in a highly volatile asset class.
Why do you need SWAVE?
Most folks shy away from investing in newer options due to their newness and volatility. The cryptocurrencies asset class is one such investment too and has kept the majority of investors wary of investing in it. SWAVE was created to change that.
SWAVE token tracks a strategy that has helped maximize crypto returns while protecting the investor from massive drawdowns. In 2022, when BTC and ETH were seeing drawdowns of between -70% and -80%, shüts’ crypto strategy protected our investors with a maximum drawdown of -45%. That’s nearly 50% of the risk cut down.
This gold standard strategy was built using popular momentum metrics and is battle-tested to create a fine balance between diversification and growth.
Performance for April 1st 2021 – March 2nd 2023
| Crypto Investment | Total Return | Maximum Drawdown | Sharpe Ratio |
|---|---|---|---|
| BTC | -59.76% | -74.28% | -0.6 |
| ETH | -15.44% | -77.28% | -0.1 |
| shüts Crypto Strategy | +509.02% | -56.29% | 1.99 |
shüts’ Crypto strategy has been proven to beat cryptocurrencies likes Bitcoin and Ethereum with stabilized returns, moving the investment class down from an unacceptable risk level to a high risk level.
How does SWAVE help with the strategy?
SWAVE is the strategy. In order to make it easier to follow this successful strategy, SWAVE as a token was created. SWAVE keeps the token-holder invested in the same assets that the strategy recommends, allowing one to follow the strategy with ease. SWAVE is automatically rebalanced too, taking an action step out of the process for investors.
Launching SWAVE
SWAVE mimics the design of an index fund in the traditional stock market. The token has an algorithm to pick its underlying assets and rebalance these, making it low-cost and low-effort. SWAVE follows the core principal of DeFi, being trustless, which means that you do not need to trust Shuts Wealth Inc. or any third-party for ownership of your token or its underlying assets. As long you own and control your wallet, your tokens and underlying assets are in your control. This is important since it safeguards investors against third-party malicious intent.
Does SWAVE make crypto investments risk free?
Any investment has some risk associated to it. While the strategy aims to maximize returns for a reduced level of risk, it still cannot eliminate risk entirely. The strategy will go through its cycle of volatility but has been backtested to see higher rewards than buy-and-hold tokens. The strategy, and token, has some risk-mitigation mechanisms built into it to move the investor to stable assets during times of extreme volatility. SWAVE is a 100% collateralized token where the token-holder holds the underlying assets, reducing the risk of vault hacks and other vulnerability. As an ERC-20 token, SWAVE is exposed to smart contract vulnerabilities. We’ve taken steps to mitigate some of these risks:
- SWAVE is built on Set Protocol which hosts Bug Bounty Programs and has completed third-party audits by OpenZeppelin, ABDK, and Iosiro – Perpetual Module and Basis Trading Module.
- We’ve taken proprietary measures to ensure the safe rebalancing of underlying tokens
- And other measures which are found detailed in the SWAVE whitepaper
