What are MTK’s?

MTKs are tokenized portfolios consisting of customized baskets of assets created by Portfolio Managers (PM´s). The goal of MTKs is to help users diversify and mitigate risks by allowing them to invest their capital into a basket of various assets, similar to index tokens or tokenized strategies, such as ETFs or mutual funds in traditional finance.

Each MTK created within the platform will have its own name and policy ID.

Benefits

• Increased Security: MTKs offer enhanced security for investors as tokens are stored in vaults via smart contracts on the Cardano blockchain, which is a secure and immutable ledger that ensures safety for users. This means that tokens are protected from theft or manipulation.

• Increased Liquidity: MTKs allow investors to easily trade their assets, which increases liquidity and enables investors to quickly access their funds.

• Lower Fees: MTKs generally have lower fees than traditional portfolios as the cost of trading is reduced due to the use of blockchain technology.

• Increased Transparency: MTKs offer greater transparency as all transactions are recorded on the blockchain, making it easier for investors to track their investments.

• Automation: MTKs can be automated, allowing investors to set up their portfolios and have them managed automatically. This can help to reduce the amount of time and effort required to manage a portfolio.

MTKs are minted straight from the Metera platform by depositing the underlying assets in the right proportion to the MTK. As of V.1 this is the only way to mint MTKs. Future versions of the platform will allow the minting of MTKs by depositing $ADA and interacting with a decentralized exchange in the Cardano Ecosystem.

PM's asset selection is translated into an on-chain function called a "weighting function," which is specific to each MTK. The selection is automated, and the weighting function determines how much of each asset needs to be included based on the defined criteria. This ensures that the contents of an MTK are controlled at all times by code, taking human input away from the management of the MTK.

How does the Metera Protocol ensure the security of MTKs and user funds?

Through regular security audits over non-custodial vaults.

*** Please keep in mind this document is a work in progress, things may change as the project evolves ***