Phuture Finance develops multi-chain asset management infrastructure for on-chain products. They launched the Trackr Liquid Staking Index, investing in 9 liquid staking and restaking assets across 3 blockchains.

The Phuture V2 protocol supports a non-custodial multi-chain fund structure using Layer Zero for messaging. Upcoming products include Pendle Boosted ETH Index and partnerships for gaming and meme coin indexes. The PHTR token governs Phuture DAO, overseeing revenue distribution and licensing.

Dive into the AMA highlights to explore Phuture Finance's innovative projects and future plans:

X Spaces: Exploring the Defi Ecosystem w/ Phuture Finance

Speakers:

• Oliver Mehr: CEO @ Phuture (X Profile)

Index:

1. Phuture Finance Overview and Mission
2. Multi-chain Index Fund Technology
3. Tracker Liquid Staking Index
4. Upcoming Products and Partnerships
5. Regulatory Approach
6. PHTR Token and Governance
7. User Adoption Strategies

1. Phuture Finance Overview and Mission

• Phuture Enables on-chain products ranging from passively managed index funds to actively managed funds

• Focuses on taking advantage of DeFi Legos composability

• Developed protocols enabling multi-chain asset management products

“Our objective and our mission at Phuture has been to build cutting-edge asset management infrastructure to enable better on-chain asset management, on-chain products, everything ranging from index funds, passively managed index funds, to actively managed funds, to yield aggregated funds, and really taking advantage of the composability that DeFi Legos allow (...) where we are with our latest iteration, we're very much at the forefront of what's now possible in terms of multi-chain asset management.”

(Source)

2. Multi-chain Index Fund Technology

• Uses Layer Zero as message passing protocol due to lack of upgradeability

• Implements multi-chain accounting with "home chain" and "destination chains" concept

• Uses reserve model for efficient redemptions without executing remote trades

“We use layer zero as our message passing protocol. We did an analysis of a lot of different message passing protocols and we figured that the one thing that really is important when it comes to passing messages across different chains is a lack of upgradeability. (...) we have the idea of a home chain and then we have an idea of a concept of destination chains, the home chain knows everything that's going on all of the destination chains (...) So if someone comes to the home chain to mint the index, we can mint it atomically. I think this is really important because a lot of the time when people are talking about multi-chain products (...) the advantage of this reserve model is that where if let's say there's $10,000 in the reserve and someone wants to come and redeem $2,000 of the index that they hold, they don't need to execute any remote trades or any remote transactions for that.”

3. Trackr Liquid Staking Index

• Invests in 9 liquid staking and restaking assets across 3 blockchains (Avalanche, Polygon, Arbitrum)

• Taps into native liquidity on each chain, avoiding wrapped asset liquidity

• Supports large capital without sacrificing execution costs

“And so the Trackr Liquid Staking Index is an index that invests into nine different liquid staking and restaking assets across three different blockchains. And so, you know, in this we have Avalanche, we have Polygon, and then we have Arbitrum (...) And it allows us to tap into native liquidity. So, you know, there's no need for wrapped asset liquidity. We can buy sAVX on the Avalanche blockchain with the highest level of liquidity. (...) the end user is that we can support a product that's very large in terms of capital without having to sacrifice on very good execution costs when we trade.”

4. Upcoming Products and Partnerships

• Pendle Boosted ETH Index is launching in 3-4 weeks, aiming to boost yield to over 20%
• ARTX AI fund launched recently, investing in USDC, STE, and wrapped Bitcoin
• Developing multi-chain gaming index with major brands, including assets from Ronin chain
• Working on meme coin index partnership “The next product that we're going to be launching is the Pendle boosted eth index and so this is going to essentially take the trackrr liquid staking token, which is probably generating around four percent yield right now and we're looking to really boost that up to north of 20 (...) So we are a protocol and we're exploring many different sort of sectors. The first one we've just launched recently is the ARTX AI fund. And it's essentially a mega cap fund investing into USDC, STE and wrapped Bitcoin.(...) And then we're also looking at gaming indexes because this really takes advantage of a lot of our multi-chain capabilities (...) And then we're also working on something on the meme coin side, which I think we've, it's an area that we've wanted to get into for a long time”

(Source)

5. Regulatory Approach

• Operates through Cayman Foundation, industry-standard structure for DeFi protocols

• Blocks access from UK and US due to regulatory considerations

• Protocol designed to be decentralized, with no single controlling entity

“Our personal setup is that we have a Cayman Foundation that launches and manages all of our products. (...) The laws really depend on where you launch the product (...) And essentially, the way that we've handled it, we've just blocked the UK and the US. The US is just more out of caution. The UK, it's clear in their financial promotion laws that it doesn't really matter where the fund comes from (...) we manage the funds you know it's all blockchain based so it's completely decentralized there's no really there's no real one person or you know or entity that is that is controlling everything”

6. PHTR Token and Governance

• $PHTR token holders govern Phuture DAO.

• Control key multisigs for activities like rebalancing and treasury functions

• Approve licenses for new chains or projects to use Phuture V2 protocol

• Offers staking functionality for PHTR holders to earn yield

“The Phuture foundation includes the Phuture DAO right in the Phuture DAO is managed by the PHTR token holders. And so the multisigs that are sort of, you know, the PHTR token holders have given control of some of the key multisigs to a number of wallets that all agree and sign on specific activities like rebalancing and other treasury functions. So yeah, we operate as a DAO using the PHTR token. (...) We also have a staking functionality. For those that want to generate yield on their $PHTR”

(Source)

7. User Adoption Strategies

• Focused on partnering with established brands with large communities and distribution channels

• Previously explored "index wars" competitions to drive engagement

• Believes long-term adoption will come as crypto matures and more users seek diversification

“We're more focused on working with the right partners that have really good brands that have really big communities that have good distribution channels. I think that for us is much more important than the incentives. (...) Things we've explored in the past is like, we call them like index wars, where we have like index one, like say one DeFi index versus our DeFi index. And we have like a competition to see who can outperform each other over like a 30 day period. (...) i've been in crypto since 2016 and since that time it's mostly been trailblazers right people that want to do the research on their own, who want to invest into no diversification”