Through automation and education, Nova Finance aims to make DeFi accessible to all investors

An asset-management protocol that plans to go into soft launch in the next few weeks has pioneered the use of bitcoin specialists to develop crypto portfolios on behalf of novice investors.

The nAsset module is used by Nova Finance, which is based on the Solana blockchain. Token-backed nAsset modules, such as Solana’s or Ethereum’s or Nova Finance’s own, are known as a nAsset. Once the assets have been set up, they may be programmed to carry out certain tasks, such as executing orders or applying specific investment criteria.

It is possible to automate the process of trading by using a NnAsset that is tied to the Ethereum blockchain, for example. By utilising the Nova Finance framework and the various degrees of risk, diversification, and how to handle digital assets, cryptocurrency professionals may construct portfolios and programme them.

It is possible to build up nAssets portfolios with specified trading rules and then share them with other investors. As a result, the authors of automated portfolios get 10% of the portfolio’s return. Nova Finance hopes to remove the barrier to entry for many would-be crypto investors by enabling transactions to be fully automated.

Tom Sichel, co-founder of Nova Finance, said, “There’s actually a new tremendous wealth potential to be obtained.” When it comes to money and how it provides value for individuals, it’s almost like discovering a new frontier in economics.” “How can we bring people on that trip with us?” was the question for [Adam Greenberg and me].”

Sichel and his co-founder Adam Greenberg spotted the promise of blockchain technology early on and are now working to make it as widely available as possible to everyone with an interest in the area of blockchain technology. However, it has its share of difficulties.

“I believe that one of the main reasons DeFi programmes have difficulties is because they are designed and managed by engineers. People who have a passion for technology, but their enthusiasm isn’t necessarily reflected in their ability to use it effectively. For Greenberg, it’s all about a “user-centric approach,” he added.

As a result, the Nova Finance team has conducted hundreds of user interviews and sessions in order to better understand how customers would interact with the platform. Their efforts have been tested and retested, and they’re doing all they can to alleviate any concerns from customers. A new iteration of Nova Finance would be ready “probably within the next four months” for the company’s mobile product launch, Greenberg said.

Releasing the veils

Cryptocurrency and blockchain technology are booming, and Sichel and Greenberg, who grew up in an internet age, are ready to get in. Older investors, or those who are less technologically skilled, may have a harder time with it..

Sichel said the inspiration for the project came from seeing his father make his first cryptocurrency purchase. It was a headache to educate him on what a wallet is and how to purchase [crypto] once I’d persuaded him to do so. “Tom, can I lose half my money in one week from this investment?” he said after he had purchased Bitcoin.”

It was Sichel’s attempt to explain the process of buying cryptocurrency and the risks associated to his father that highlighted the obstacles to entry in the blockchain industry. Because of this, Sichel and Greenberg set out to create a crypto protocol that would allow anybody who wanted to join the crypto community to do so.

It is the goal of the Nova Finance team that all investors have an equal chance to develop their wealth and to have access to tools and techniques that are generally only available to more experienced investors or institutions. Nova Finance believes that DeFi is the solution.

There are a number of financial activities, like as lending and yield generation, that were previously exclusively available to the very affluent and large institutions that [DeFi is opening up]. When individuals can’t understand these ideas and aren’t on an equal playing field, “that’s the hardest thing we’ve got to overcome,” Greenberg said.

Many would-be investors are turned off by the fog of complexity that surrounds DeFi and blockchain. What Nova thinks is the best solution is to just get rid of the complexity.

“Many protocols state that users should be educated and convinced to join on board. However, our opinion is that why not remove all of the complexity? nAssets is the next logical step. Newcomers may follow your investing strategy if the asset’s programme is etched with your investment theory, according to Sichel.

What is the purpose of a Asset?

The first hurdle investors must clear is deciding whether to store their cryptocurrency in a hot (physical) or cold (digital) wallet. Once you’ve purchased the digital asset, the following step is to learn how to properly maintain it in order to get the most out of it. Here, Nova Finance comes into play with its nAssets and pre-configured crypto portfolios for investors.

Nova Finance, according to Sichel and Greenberg, will contain portfolios built by the Nova Finance team when it launches. In order to build the investment portfolios, the team will use their extensive understanding of crypto and financial methods, as well as nAssets. After Nova Finance’s debut, the team wants to establish a community around their creative investment portfolios.

With Nova tokens, investors may vote on the efficiency of portfolios based on a variety of pre-determined parameters for investing. Diversification, risk tolerance, and the kind of technology included in the portfolio are all possible criteria.

“We’re essentially trying to tap into this community and encourage individuals to bubble up to the top the greatest investment options via their ratings,” Sichel added. Those that invest early and spread the word about their successful portfolios by using their Nova tokens to vote will reap the highest rewards.

“Investors allocate funds to portfolios created by portfolio creators and portfolio curators using their Nova tokens. Those three [facets] are intertwined, and that’s what we’re attempting to do there “Sichel said on the matter.

In addition, tokenization of nAssets will allow the team to provide investors with even more value when it is implemented. Tokenized nAsset will let holders to utilise the token with various protocols and networks, offering Nova Finance a significant degree of interoperability.

For example, Sichel said that “you can tokenize your [nAsset] and then go out and use [it] across a wide range of protocols.” The ability to cooperate with other protocols like Port Finance, which enables [consumers] to acquire loans against their crypto, means that our system can function with them. As a result, nAsset owners will be able to utilise their investment guidelines, which they developed with Nova Finance, as collateral for a loan from Port Finance in the future. Stable currencies like Hubble Protocol will be used to back nAssets as well, according to the developers. “There will be more and more advantages you can gain with your nAssets as DeFi creates more and more financial use-cases,” Sichel stated.

Educating the general public

Nova Finance isn’t the only company trying to make it easier for people to get into the DeFi market by automating investing methods and creating collateral for customers. The team is also working on Nova Academy, which will play a major role in introducing newcomers to the cryptocurrency industry.

Users will be taught about crypto fundamentals including what a wallet is, how to set it up and other information, according to the team. Consumers will be relieved if nAssets can manage the more complicated aspects of crypto investment.

Solana Mainnet will be the site of Nova Finance’s soft launch in the coming weeks. For the last several months, the team has been using fake tokens and conducting experiments on a devnet. Their audit with Certik, which assesses blockchain protocol security, has just begun, and they want to reveal the results as soon as possible. Upon the launching of Nova Finance, the team is eager to get input from users in order to improve the user experience.

“We’ll be doing a soft launch in the next weeks, and we’d love for everyone to check it out and provide comments on it. Even if they don’t like it, we want to hear it, even if they don’t like it “Greenberg made the statement.