3.3 Protocol makes it reliable

How to cut through the noise and securely capture the beta of Crypto in an ever-changing market? Passive index investing in traditional finance provides a clear direction, and blockchain-based SSI Protocol enables transparent and reliable implementation.

A comparative review of the past 3, 5, and 10 years of performance between active funds and benchmark indices shows that approximately 90% of active funds underperform the benchmark. In a market overwhelmed by complex information, actively selecting assets is far more challenging than expected—especially in the ever-evolving Crypto market with its constant stream of new concepts. Passive index tracking investments are a solid choice for investors seeking stable and reliable growth.

Percentage of active funds underperforming the benchmark index

SSI Protocol leverages on-chain smart contracts to repackage multi-chain, multi-asset portfolios into Wrapped Tokens. These tokens represent a basket of underlying assets, enabling Wrapped Tokens to track the value fluctuations of the basket, achieving the effects of passive index investing.

To achieve this, SSI Protocol integrates six types of participants to build a robust protocol ecosystem:

1. User: Investors who gain market beta/alpha returns by purchasing index tokens.

2. UNI LP (Uniswap Liquidity Provider): Their primary role is to provide liquidity on Uniswap and earn transaction fees from Uniswap.

3. WLP (Whitelist Participant): SSI index tokens through the protocol and balancing Uniswap market prices by buying/selling at market rates, aiming to align Uniswap prices with underlying asset value and earning arbitrage profits from price stabilization.

4. PMM (Proactive Market Maker): Helps purchase the underlying spot assets of index tokens and stores them in custody accounts.

5. Custody: Ensures the secure storage of the underlying assets of index tokens.

6. Index Compiler: Responsible for formulating the index construction methodology, determining the constituent tokens and weights, and ensuring the long-term effective operation of the index.

By leveraging SSI Protocol, investors are freed from the overwhelming sea of information and the need to research individual tokens. They avoid the extreme risks associated with single cryptocurrencies while gaining exposure to broader market movements. With SSI tokens, investors can focus on macro trends and core market logic, effortlessly capturing both beta (market-width growth) and alpha (sector-specific or niche opportunities) returns.

SoSoValue: Making investment reliable and simple.