The DeFi Dilemma: Why On-Chain Investing Feels Like a Maze

Before diving into the allure of DeETFs, it’s crucial to understand the pain points currently faced by on-chain investors. These challenges are precisely what drove the creation of DeETFs:

· Overwhelming Protocol Complexity: For newcomers, the DeFi landscape is a bewildering array of terms and operations: yield farming, liquidity pools, staking, lending protocols, cross-chain bridges, AMMs (Automated Market Makers)… Understanding these mechanisms and participating safely requires a significant learning curve and specialized knowledge. A single misclick can lead to irreversible loss of funds.

· High Volatility and Risk Management: Compared to traditional markets, cryptocurrency exhibits extreme volatility, with asset prices capable of wild swings in short periods. Moreover, impermanent loss, smart contract vulnerabilities, and rug pulls are rampant risks, keeping investors constantly on edge and making it difficult to hold assets with peace of mind.

· Exorbitant Transaction Costs: On some popular blockchains, high gas fees and transaction costs can erode small investors’ profits, or even make it unfeasible to participate in certain DeFi activities. Frequent asset adjustments and strategy executions become uneconomical.

· Information Overload and Narrative Chasing: The DeFi world evolves at lightning speed, with new projects and “narratives” emerging constantly. Investors must spend vast amounts of time tracking market trends and discerning genuine information from hype. This not only saps energy but also often leads to impulsive decisions rather than rational, analysis-driven investment choices.

· Asset Security and Privacy Challenges: Private key management, seed phrase backups, and wallet security are ever-present concerns for on-chain investors. Furthermore, the high transparency of on-chain activity can sometimes raise privacy concerns.

· Lack of Effective Diversification Tools: Building a truly diversified portfolio on-chain requires investors to manually configure multiple assets and manage various positions. This is not only inefficient but also challenging to adjust dynamically.

These pervasive pain points have hindered DeFi’s broader adoption, deterring many from venturing into this promising space. The advent of DeETFs aims to resolve these issues, opening a wider, more user-friendly gateway to on-chain investing.

Enter DeETFs: A Smarter, Simpler Path to On-Chain Wealth

A Decentralized Exchange-Traded Fund (DeETF) can be understood as an on-chain, composable, and traceable portfolio of assets. It brings the advantages of traditional ETFs — such as index investing, low costs, and passive returns — into the decentralized world, while integrating the unique benefits of blockchain and artificial intelligence. The core promise of DeETFs is to provide a “smart and simple” on-chain investment solution, designed to demystify complexity and make professional-grade investing universally accessible.

How do DeETFs address the DeFi dilemma?

· Simplified Investment Entry: DeETFs package complex underlying DeFi strategies or a basket of crypto assets into a single, easy-to-understand token. Investors don’t need to delve into the intricate details of every DeFi protocol; by simply buying or holding a DeETF token, they can effortlessly participate in diversified on-chain investing.

· Intelligent Risk Management and Diversification: A DeETF allows investors to gain exposure to multiple crypto assets or strategies through a unified entry point, thereby achieving risk diversification. AI agents can automatically adjust portfolio weightings based on pre-set strategies or market changes, mitigating the impact of single-asset volatility and avoiding potential risks like impermanent loss.

· Reduced Transaction Costs and Operational Overheads: Since DeETF creation and management are primarily executed automatically on-chain by smart contracts and AI agents, the need for human intervention and traditional management fees is significantly reduced, leading to lower overall costs for investors.

· Shifting from “Narrative Chasing” to Strategic Allocation: DeETFs encourage investors to move from blindly pursuing market hot spots to strategy-based asset allocation. Through AI-driven automatic rebalancing, DeETFs can optimize based on market data and algorithms, helping investors make more rational decisions.

· Enhanced Asset Security and Transparency: All DeETF operations are recorded on the blockchain, meaning the composition of the investment portfolio, its performance, and any adjustments are fully transparent and auditable. Concurrently, assets are managed by smart contracts, reducing human operational risks.

· High Composability: A DeETF token itself is an on-chain asset that can be further utilized within other DeFi protocols as collateral, for lending, or for staking. This enhances capital efficiency and exemplifies the “money legos” effect of the DeFi world.

Yamaswap: Pioneering the DeETF Revolution

As a trailblazer in the DeETF space, Yamaswap is turning this vision into reality through its innovative technology and philosophy. Yamaswap is more than just a decentralized trading protocol; it’s a platform designed to empower users and simplify the investment experience.

Permissionless Power: Returning Control to the User

Yamaswap’s core philosophy centers on being a “permissionless” fund platform. This means any user, regardless of their background, can:

· Create Their Own DeETF Indexes: Through Yamaswap’s OCX protocol, users can define their investment strategies, select included assets, and create new DeETF indexes. This breaks down the barriers of traditional fund creation, enabling ordinary individuals to become fund managers.

· Freely Participate in Investments: Investors can freely choose and purchase various DeETFs available on the platform, without needing permission or approval from any centralized institution.

This permissionless nature is one of the most significant distinctions between DeETFs and traditional financial products. It truly shifts the power of asset management from centralized entities to the users, democratizing finance.

AI Empowerment: Universalizing Intelligent Decision-Making

Artificial Intelligence (AI) plays a pivotal role in Yamaswap’s DeETF ecosystem. It’s not just an auxiliary tool; it’s the very soul of DeETF’s “intelligent” attribute:

· AI Agent-Managed DeETFs: Yamaswap leverages AI agents in conjunction with smart contracts to manage on-chain DeETFs. This means that complex operations like asset allocation, rebalancing, and risk control within a DeETF can be automatically executed by pre-set AI algorithms, without human intervention.

· Optimized Investment Strategies: AI can recommend optimal token combinations and weightings based on market data, historical performance, and user preferences. It can even make dynamic adjustments to pursue optimized returns or risk control. This allows ordinary investors to benefit from quantitative strategy-level investment services.

· Transparent and Traceable Performance: AI-driven strategy logic is configurable, and its performance is fully traceable, with all data publicly available on-chain, thereby enhancing investment trustworthiness.

Through AI integration, Yamaswap not only lowers investment barriers but also elevates the professionalism and efficiency of investing, enabling more people to benefit from intelligent investing.

Cost Efficiency and On-Chain Transparency

Since DeETF operations primarily rely on smart contracts and AI, they significantly reduce the high management fees and operational costs associated with traditional funds. Investors no longer pay for fund managers’ salaries, office rent, or other overheads. Everything happens transparently on-chain, with asset flows, portfolio compositions, and profit calculations verifiable on a blockchain explorer, eliminating information asymmetry and potential black-box operations.

Yamaswap: A Solid Technological Foundation

Yamaswap’s ability to achieve its ambitious vision is underpinned by its robust technological infrastructure:

· High-Performance Solana Blockchain: Yamaswap chose to build on the Solana blockchain for its high throughput, low latency, and extremely low transaction costs. This provides a solid foundation for fast trading, frequent rebalancing, and efficient on-chain operations for DeETFs, ensuring a smooth user experience.

· Intent Framework and OCX Protocol: Yamaswap adopts the Intent Framework and utilizes the modular OCX protocol for constructing DeETFs. The OCX protocol is not only flexible in supporting different types of DeETF construction but also deeply integrates with the current DeFi ecosystem.

· “Intent Mode” Trading: Through “intent mode” trading, Yamaswap allows users to select different liquidity providers (such as Raydium and OKX) when purchasing DeETF indexes, thereby securing the best possible trading prices and improving capital efficiency.

· Cross-Chain Ambition: Beyond Solana, Yamaswap also supports the #BASE blockchain, showcasing its strategic layout for multi-chain interoperability and aiming to reach a broader range of DeFi users and assets.

· Multi-DEX Liquidity Aggregation: By aggregating liquidity from multiple decentralized exchanges, Yamaswap ensures depth and efficiency for DeETF trading, reducing slippage and enhancing the user’s trading experience.

Beyond Investing: The Broader Possibilities of DeETFs

A DeETF is more than just an investment tool; its composability opens up a wider array of applications:

· DeFi’s Money Legos: DeETF tokens themselves are on-chain assets that can be used like LEGO bricks, further integrated into other DeFi protocols. For example, they can serve as collateral on lending platforms, or participate in staking or liquidity mining in other protocols, thereby maximizing capital utilization and the “money legos” effect of the DeFi world.

· DAO and Project Treasury Management: For Decentralized Autonomous Organizations (DAOs) and various crypto projects, DeETFs offer an efficient and transparent on-chain fund management solution. They can invest in DeETFs to diversify treasury risks and achieve asset appreciation, without the burden of complex individual asset management tasks.

· Empowering AI Model Developers: Yamaswap also provides a platform for AI users and model providers, allowing them to deploy and monetize their AI investment strategies, forming a virtuous cycle within the ecosystem.

Who Stands to Benefit from the DeETF Revolution?

The advent of DeETFs will bring significant advantages to various types of on-chain participants:

· New Crypto Investors: For beginners overwhelmed by DeFi’s complexity, DeETFs offer a simple, secure, and AI-driven entry point, helping them easily participate in on-chain investing and asset allocation.

· Traditional Finance Investors: With their familiar “ETF” format, DeETFs open the door to the crypto world for traditional finance investors, allowing them to understand and engage with DeFi within a more recognizable framework.

· “Narrative Chasers” Upgrade: For traders accustomed to pursuing market hot spots and narrative-driven investments, DeETFs provide a more structured and intelligent investment approach, helping them break free from short-term volatility and focus on long-term strategies.

· DAOs and Crypto Projects: DeETFs offer an efficient and transparent on-chain asset management solution for DAOs and project treasuries, contributing to their financial health and sustainable development.

· AI Users and Model Providers: This platform provides an opportunity to directly translate AI capabilities into on-chain investment value, encouraging the deep integration of AI technology with DeFi.

The Road Ahead: Yamaswap’s Ambitious Vision

Yamaswap’s DeETF revolution has only just begun. Looking ahead, Yamaswap has a clear roadmap and an ambitious vision:

· Launching Official Indexes: The platform plans to launch on-chain DeETFs that track official indexes from major institutions like Grayscale and Coinbase, further bridging traditional finance and the decentralized world.

· Expanding DeETF Types: Yamaswap will continue to enrich the variety of User-Generated Content (UGC), Professional-Generated Content (PGC), and AI Agent DeETFs to meet diverse investment needs.

· Ecosystem Expansion: Yamaswap is actively pursuing the listing of its application in major app stores and is even considering deep integration with Solana’s native crypto phone, Saga 2, to achieve wider user reach.

· Embracing the On-Chain Future: Yamaswap firmly believes that on-chain transactions, user-owned assets, and privacy will be key trends in the future of cryptocurrencies. DeETFs are a crucial component of this future vision.

Conclusion

The future of DeFi belongs to protocols that can simplify complexity, empower users, and embrace innovation. Yamaswap, through its unique DeETF model, is leading a profound transformation in on-chain investing. It not only addresses the current pain points of DeFi but also, with its permissionless nature, AI-driven intelligence, and robust technological foundation, builds a smarter, simpler, and more transparent new paradigm for on-chain investment for everyone. Say goodbye to the complex maze, and welcome the intelligent future — Yamaswap and DeETFs are set to become essential partners in your on-chain wealth management journey.

Join US：t.me/yamaswapag

Over the past few years, DeFi (Decentralized Finance) has undergone a remarkable transformation. From 2020 to 2021, the total value locked (TVL) in DeFi markets surged from billions to a peak of approximately $178 billion. Protocols like Uniswap and Aave rapidly rose to prominence, showcasing the immense potential of decentralized finance.

However, this rapid growth also brought significant challenges. For the average investor, the complexity of wallet operations, the intricate nature of smart contracts, and inherent security risks created high barriers to entry. Despite DeFi’s visibility, traditional financial institutions’ actual participation remains low. This highlights a clear market demand for simplified DeFi investment solutions.

It’s against this backdrop that DeETF (Decentralized ETF) emerged. DeETFs aim to combine the convenience of traditional ETFs with the transparency of blockchain technology, offering a new solution for on-chain asset management. They can be seen as a bridge connecting the new world of DeFi with traditional investors, enabling more users to participate in decentralized finance in a familiar way.

This article will explore the evolution of DeETFs, their technical core, and how this new paradigm is reshaping on-chain asset management.

Part 1: From DeFi to DeETF: The Evolution of On-Chain ETFs

Early Exploration (2017–2019): Technical Incubation and Emerging Demand

DeFi’s origins are deeply intertwined with early Ethereum ecosystem projects. From 2017 to 2018, MakerDAO and Compound demonstrated the possibilities of decentralized lending and stablecoins. Subsequently, Uniswap’s Automated Market Maker (AMM) model, introduced in late 2018 and early 2019, drastically simplified on-chain trading. By the end of 2019, DeFi’s TVL had approached $600 million.

While the “DeETF” concept hadn’t yet been formalized, the growing interest from traditional capital, coupled with the technical complexities they faced, laid the groundwork for DeETF’s eventual emergence.

Market Explosion and Concept Formation (2020–2021): The Dawn of DeETF

In 2020, global economic shifts drove substantial capital into the crypto market, fueling DeFi’s explosive growth. TVL skyrocketed from $1 billion to $178 billion within a year. However, exorbitant Ethereum network fees and the dizzying array of new models like liquidity mining and yield farming exposed significant user friction.

During this period, some traditional financial firms began exploring ways to package DeFi protocols into traditional financial products. For instance, Canadian-listed DeFi Technologies Inc. pivoted to launch financial products tracking major DeFi protocols (like Uniswap, Aave), allowing users to invest in DeFi through familiar traditional exchange mechanisms. This marked the initial crystallization of the DeETF concept.

Concurrently, decentralized communities also began attempting to manage ETF-like portfolios directly via smart contracts, as seen with early efforts like DeETF.org, though these initiatives were still in their nascent stages.

Market Shakeout and Model Maturation (2022–2023): DeETF’s Refinement

The “crypto winter” of early 2022, marked by events like the Terra collapse and FTX bankruptcy, severely impacted market confidence, causing DeFi TVL to plummet from its peak to $40 billion. Yet, crises often catalyze innovation. The sharp downturn underscored the need for more secure and transparent on-chain investment tools, accelerating DeETF’s development. In this phase, DeETFs evolved into two distinct models:

1. Strengthened Traditional Financial Channels: Institutions like DeFi Technologies expanded their Exchange Traded Product (ETP) offerings, listing them on traditional stock exchanges. This significantly lowered the barrier for retail and institutional investors to access DeFi.

2. Rise of On-Chain Decentralized Models: On-chain platforms such as DeETF.org officially launched, facilitating direct on-chain asset management and portfolio trading via smart contracts. This offered a more DeFi-native solution, allowing users to create and manage investment portfolios without centralized intermediaries, appealing to crypto-native users seeking ultimate transparency.

These parallel developments contributed to the clear delineation of the DeETF landscape.

Part 2: The Rise of New Projects: Diversification and Innovation in the DeETF Space

Diversification of the DeETF Ecosystem

Since 2023, the DeETF sector has entered a phase of diverse approaches. While some projects continue to follow the traditional ETP model, purely on-chain, decentralized DeETF platforms have also gained traction.

• On-Chain Native Asset Portfolio Platforms: Projects like DeETF.org and Sosovalue have emerged as pioneers. Sosovalue, for example, supports multi-themed portfolio strategies (e.g., GameFi, blue-chip tokens), offering a “one-click buy + trackable” ETF product experience that enhances user convenience.

• Institutional RWA Solutions: Leading Real World Assets (RWA) projects like Securitize are tokenizing traditional financial assets such as U.S. private equity, corporate bonds, and real estate, bringing them onto the blockchain in a compliant and efficient manner for institutional investors. While not directly termed DeETFs, their structured asset custody and KYC mechanisms embody core DeETF characteristics.

• Standardized Index Tools: Organizations such as Index Coop provide standardized packaging of DeFi assets, offering products like the DeFi Pulse Index (DPI). These allow users to invest across broader DeFi sectors, reducing individual token selection risk.

This diversification indicates that DeETF is evolving from a singular solution into an ecosystem addressing varied needs and risk appetites.

AI-Powered DeETF: Towards Smarter On-Chain Management

Within the competitive DeETF landscape, some projects are introducing AI technology to redefine on-chain asset management, aiming for both decentralization and intelligence. For example, platforms like YAMA are moving beyond manual portfolio construction.

These platforms enable users to input simple requirements, such as desiring a “low-volatility, stable-yield” portfolio or wanting exposure to “Ethereum ecosystem assets.” The integrated AI system then analyzes historical on-chain data, asset correlations, and liquidity metrics to automatically recommend optimal token combinations and weightings.

For instance, a user unfamiliar with the Solana ecosystem could receive AI-driven suggestions like “30% SOL, 20% LSTs (Liquid Staking Tokens), 50% USDC,” complete with backtesting results based on real-time on-chain data. This significantly condenses the complex asset allocation work typically performed by professional research teams into a streamlined on-chain interaction.

Furthermore, deploying platforms on high-performance, low-cost chains like Solana and Base significantly reduces transaction fees compared to the high gas costs of the Ethereum mainnet. This deployment strategy substantially lowers the barrier to entry and enhances the user experience for DeETF utilization.

Regarding on-chain security, DeETF portfolios are managed through smart contracts, ensuring full transparency. Users can view portfolio composition, real-time market value changes, and transaction details on-chain, eliminating information opacity and custody risks associated with centralized management.

Competition and New Opportunities in the DeETF Space

The DeETF sector is vibrant with diverse players. Some platforms (e.g., DeETF.org) emphasize user freedom in portfolio composition; others (e.g., Sosovalue) offer productized strategic portfolios; while organizations like Index Coop focus on standardized index tools. In the traditional realm, DeFi Technologies serves retail investors, and Securitize targets compliant institutional users, setting a precedent for DeETF expansion within regulatory frameworks.

Among these varied implementations, projects that truly integrate “intelligent asset portfolio design” with “fully self-deployed on-chain” capabilities stand out. This approach not only lowers the barrier to entry for general users but also aligns with the broader trend of on-chain asset management moving towards intelligent autonomy.

According to a report by Precedence Research, the DeFi market is projected to grow from $32.36 billion in 2025 to approximately $1.558 trillion by 2034, at a Compound Annual Growth Rate (CAGR) of 53.8%. This growth implies that DeETFs will not only be a part of the DeFi ecosystem but are also likely to become one of the most critical use cases for on-chain asset management in the future.

Conclusion: DeETF Reshaping the Future of On-Chain Asset Management

Over the past few years, the crypto industry has navigated through cycles of euphoria and collapse. Each advancement in DeFi has reaffirmed the principles of financial freedom, transparency, and inclusivity. DeETF, as an “enhanced user experience” for DeFi, is now undertaking the task of further popularizing and lowering the entry barriers to this space.

While the DeETF sector is currently nascent, its growth potential is substantial. The demand for on-chain asset management is expected to expand significantly in the coming years. Platforms that can simultaneously address the pain points of “intelligent allocation” and “on-chain transparency” are poised to capture a significant share in the next growth cycle.

Today, we can observe diverse explorers in the DeETF landscape:

• Traditional financial channels, such as DeFi Technologies, offering compliant and familiar crypto ETPs.

• On-chain autonomous platforms, such as DeETF.org, emphasizing self-composition and complete transparency.

• Emerging forces, such as YAMA, building upon the decentralized ethos by integrating AI-assisted portfolio construction to make on-chain asset management truly “intelligent and personalized.”

If early DeFi addressed the question of “can finance be decentralized?”, today’s DeETFs are tackling the question of “can decentralized finance be made accessible and user-friendly for a wider audience?”

The future of on-chain asset management should not be limited to a niche tool for arbitrageurs; it should become an accessible capability for any investor. DeETF holds the key to realizing this vision. The story is far from over, but the future is slowly taking shape.

Join the YAMA community: t.me/yamaag

In the world of traditional finance, the success of ETFs (Exchange-Traded Funds) is undeniable. With their characteristics of index investing, low costs, and passive returns, they’ve enabled countless everyday investors to easily participate in the growth of stocks, bonds, and even commodities, without needing to deeply research each individual asset.

However, when we turn our attention to the booming world of DeFi (Decentralized Finance), the situation seems a bit different. The high volatility, endless stream of new concepts, and complex operational procedures often deter regular users and leave professional on-chain investors scrambling to chase trends and manually rebalance portfolios.

This brings us to a core question: How can DeFi also offer a “smart and simple” investment solution to help more people safely and efficiently capitalize on its rapid growth?

The answer is DeETF — Decentralized Exchange-Traded Fund. It’s not merely a blockchain mapping of traditional ETFs; it’s an innovation that leverages DeFi’s native advantages to bring a paradigm shift to on-chain investing. This article will delve into the concept of DeETFs, their similarities and differences with traditional ETFs, and why they might just be the future of on-chain investing.

What is a DeETF?

A DeETF (Decentralized Exchange-Traded Fund) is an on-chain, composable, and traceable asset portfolio, issued and traded through decentralized protocols like YamaSwap.

Think of it this way: Just as an S&P 500 index ETF represents a basket of stocks, a DeETF represents a basket of crypto assets. This could be a specific sector index (e.g., a DeFi blue-chip token index, a GameFi concept index), a thematic strategy (e.g., an AI-related coin portfolio), or even a KOL-recommended investment portfolio.

Unlike a simple collection of tokens (sometimes referred to as a “token basket”) or a basic digital vault (which might primarily just hold assets), the core of a DeETF lies in its inherent “intelligence” and “tradability”:

• Configurable Strategy Logic: DeETFs can have complex investment strategies pre-programmed, executed automatically by AI Agents, or created and managed by humans (e.g., professional institutions or KOLs). It’s more than just asset stacking; it’s the embodiment of a strategy.

• Traceable Performance: Every DeETF has clear on-chain performance data, allowing for transparent tracking of its historical gains/losses, component adjustments, and more.

• Tradable, Decomposable, Recomposable: DeETFs are themselves on-chain tokens that can be freely traded on DEXs. Furthermore, under specific conditions, their underlying assets can be unwrapped, and the portfolio can be strategically rebalanced based on market changes.

Similarities & Differences vs. Traditional ETFs

DeETFs draw upon the essence of traditional ETFs while leveraging the unique advantages of blockchain and DeFi, forming their distinct characteristics.

Key Comparisons with Traditional ETFs:

Why DeETFs Might Be the Future of DeFi Investing?

The rise of DeETFs is no accident; they precisely address several pain points in current DeFi investing while offering unique advantages that traditional solutions simply cannot match:

• Narrative → Strategy: From Chasing Narratives to Strategic Allocation In the crypto world, investing often revolves around “narratives”: Layer 2 narratives, AI narratives, GameFi narratives, Meme narratives… For individual investors, precisely identifying quality projects within each narrative and effectively allocating capital is nearly impossible. DeETFs can dynamically compose assets within specific “sectors” or “narratives,” allowing investors to strategically participate in the growth of an entire ecosystem, rather than just betting on a single project.

• AI → Rebalancing: No More Manual Rebalancing or Trend Chasing; AI Delivers Smart Rebalancing The crypto market is highly volatile, and manual rebalancing is not only time-consuming and labor-intensive but also demands expert judgment and emotional control from investors. DeETFs, especially those integrating AI Agents (like YamaSwap), can automatically rebalance assets and adjust strategies based on market changes, macro trends, and even on-chain data. This means investors no longer need to constantly monitor the market or chase trends; AI can sense market shifts and automatically optimize portfolios, locking in profits or appropriately covering positions.

• Access → Simplicity: New to MEME/L2/GameFi? One DeETF Can Cover a Whole Sector For new users entering the DeFi world, understanding the complexities of various blockchains, protocols, and tokens is a significant barrier. DeETFs provide them with an extremely simple entry point. There’s no need to agonize over which single Meme coin or L2 token to choose; one DeETF can encompass an entire hot sector, significantly lowering the investment threshold and allowing even novices to participate easily.

• Composable → DeFi Native: DeETFs are On-Chain Assets, Allowing Further Nesting, Staking, and Collateral Use A DeETF is more than just an investment tool; it’s a DeFi-native asset. This means a DeETF itself can be recognized and utilized by other DeFi protocols. You can use a DeETF as collateral for loans, stake it for additional yields, or even nest multiple DeETFs to form more complex investment strategies. This high degree of composability opens up endless possibilities for innovation within the DeFi ecosystem.

How YamaSwap Builds DeETFs

YamaSwap is a pioneer and practitioner of the DeETF concept, bringing DeETFs to life through its innovative technical architecture and product design:

• Modular Protocol Architecture (OCX Protocol): YamaSwap utilizes the OCX protocol to build a highly flexible and scalable modular protocol architecture, capable of supporting the creation and management of various DeETFs.

• Diverse Strategy Creation Mechanisms: YamaSwap supports multiple ways to create DeETFs:

UGC ETF (User-Generated Content ETF): Community users can create and issue their own DeETFs based on their insights and strategies, sharing in the returns.

PGC ETF (Professionally-Generated Content ETF): Professional institutions or KOLs can issue DeETFs managed by them, providing expert investment services to their followers.

AI Agent ETF: This is a core highlight of YamaSwap, driven by powerful AI Agents that enable fully automated asset allocation and strategy execution.

• Cross-Chain Support & Multi-DEX Liquidity Aggregation: YamaSwap is not only deployed on high-performance public chains like Solana but will also support multi-chain ecosystems (e.g., Base, Sui) in the future. It aggregates liquidity from different DEXs to ensure the depth and efficiency of DeETF trading.

• Upcoming Feature Preview: YamaSwap is actively developing more cutting-edge features. For instance, users will soon be able to create and manage personalized DeETFs through AI dialogue, directly instructing the AI Agent, making the investment experience even more intuitive and convenient.

Who Is DeETF For?

The advent of DeETFs will benefit various participants across the DeFi ecosystem:

• Crypto Newcomers: Investors who want to participate in hot sectors (like Meme, AI, GameFi) but don’t know how to pick coins or are hesitant about single-asset risk can easily cover an entire sector with one DeETF.

• Narrative Traders: Traders looking to closely follow market narratives and efficiently allocate assets to specific themes will find DeETFs to be powerful tools for strategic deployment.

• DAOs / Projects: Decentralized Autonomous Organizations (DAOs) or projects can package their ecosystem assets into an “ecosystem index” DeETF, serving as a concentrated representation of their ecosystem’s value and providing an investment channel for their community.

• AI Users / Model Providers: Individuals or teams with AI models or strategies can encapsulate their intelligent investment strategies into AI Agent DeETFs, launching them to the market to attract more users to follow, thereby commercializing their strategies.

Conclusion

DeETFs, as the most meaningful parallel creation to traditional ETFs in the DeFi world, are transforming on-chain investing in unprecedented ways, making it smarter, more transparent, and more open. They not only lower the barrier to entry for on-chain investing but also provide more efficient tools for professional investors. More importantly, they are reshaping the paradigm of digital asset portfolio management.

YamaSwap is committed to making this a reality, striving to build an AI-driven, multi-chain compatible, and universally accessible decentralized ETF platform. We firmly believe that DeETFs will be an indispensable part of future on-chain investing.

We invite you to follow YamaSwap for the latest updates, test out our product, and join our community as we collectively build the future of decentralized smart asset management!

At Yamaswap, our goal is to create permissionless decentralized fund platform that gives users the experience of a centralized index fund platform. Every decision we make at Yamaswap is aimed at providing a better user experience, where users can choose to trade on different supply channels, supporting leading Dex platforms such as Ray, Okx, Cow, Uni and more.

Leveraging Solana's technology, Yamaswap provides a trading environment that not only rivals the experience of traditional ETFs, but also surpasses them in terms of security and transparency. "Yamaswap, created by the community, has attractive permissionless crypto ETFs like SPX".

As you can see, the above figure is the basic architecture diagram of Yamaswap, with Layer1 and Layer2 as the consensus base, through the Ocx protocol protocol built by Yamaswap, ETFs can be constructed as well as through access to the current Defi ecosystem, it can better meet the needs of users, Such as trading in the mode of intent, through the Yamaswap platform, in the user to buy ETFs index, you can choose different providers, it is the best way and the cheapest price, so that users can buy more assets, of course, users can also choose their own favorite channels, the current support for Ray, Okx, etc. The future of Yamaswap will also expand the platform of the DEX dedicated to ETFs and born.

Open crypto ETFs, will be constructed by users, platforms, kol and other groups of ETFs index, for the fan group, they can choose their favorite ETFs index to buy assets, of course, you can also directly buy the ETFs constructed by major institutions (such as grayscale, coinbase, binance index, BlackRock's Buidl), and Yamaswap tracks this index through the chain to facilitate the needs of players on the chain.

At the top level, Yamaswap provides a simple front-end interface and SDK for interaction, and in the future will build the application and go online to major stores. In the future, we will build the app and launch it in major stores to meet the needs of more users, and of course we will also consider the launch of Saga 2 to purchase directly from Solana's native crypto phone.

An ETFs (Exchange-Traded Fund) is a fund that is listed and traded on a stock exchange, similar to a stock, and can be bought and sold on an exchange. Unlike traditional mutual funds, ETFs are more flexible and can be traded in real time, just like stocks.ETFs typically track an index, sector, or basket of assets, which investors can indirectly hold by purchasing the ETFs. Simply put, an ETFs is a portfolio of assets with multiple asset allocations.

TrETF indexes are usually created by institutions or brokers, and the ETFs themselves require a manager to make adjustments to the ETFs and charge an annual management fee. Because of smart contracts and AI agents, in the future Web3 world, ETFs can be managed by AI together with smart contracts, and they are hosted on the public chain running on the smart contracts at a very cheap price, users only need to buy their favorite ETFs indexes without having to pay management fees, and the fees are transparent, all the assets that make up the ETFs indexes can be voted on by the holders to add or remove an asset. At the same time, any user can create a new ETFs index through the ocx protocol interface provided by Yamaswap, and can specify which assets are in the ETFs index, which is permissionless ETFs index, and users only need to have a wallet to create and track any cryptocurrency index.

In the future, Yamaswap will launch some official indexes, such as tracking indexes created by grayscale, coinbase 50, binance, VirtualBacon Portfolio, and create an ETFs through a protocol, so that users can conveniently buy assets directly on Solana, base, and other public chains without having to wait for the traditional ETFs indexes to be compliant in order to make purchases.

Currently, the only ETFs's available are bitcoin and eth, but for users, Yamaswap believes that more users want to own other crypto assets, so we've built a new protocol that allows anyone to create a new index, such as your kol followers, who can also build a new ETFs through the ocx protocol. We have built a new protocol that allows anyone to initiate a new index, such as a kol you follow, and they can also build a new ETFs index using the ocx protocol, which can be used to allow more fans to track and copy trade.

We firmly believe that the future of cryptocurrencies will inevitably be predominantly on-chain, according to the latest data from The Block, in December 2024, the network's mainstream DEX spot trading volume reached a record high of $323.25 billion. This figure represents a 7.89% YoY increase from November's $299.61 billion.

For users, asset security and privacy will be an important trend in the future, such as the recent rise of pump, hyperliquid and other platforms, are based on on-chain transactions, user-owned, user-controlled, no need for permission is the trend of the next 10 years.

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