The tokens that make up these bundles or 'Thematics' are handpicked, researched and curated by the company's investment team based on the criteria associated with the particular theme.
The creation of Thematics represents a long term goal of SwissBorg, first mentioned in the whitepaper way back in 2017 mass adoption of crypto wealth management.
The new feature responds to the initial intention of the team to create an easy to use investment tool aimed at increasing diversification for the user.
Having launched their first thematics SwissBorg plans to cater to the full range of interest of the growing crypto space and will continually launch new Thematics with time..
The Web3 Thematic
Web3 is the all encompassing term for the next iteration of the internet.
It is the internet of the future that will work as the catalyst needed to move us into the next digital epoch of a more open, transparent digital world where individuals are the owners of their own data and identity.
The tokens chosen for this Thematic represent the infrastructure of this digital progression, including blockchains, smart protocols and our CHSB.
Our investment team focused on Proof of Stake tokens that use much less energy than the antiquated Proof of Work system, and projects that have a stable purpose and roadmap.
The strong communities and governance models of these tokens are another deciding factor, the proof of which can be seen in their high ESG Ratings.
The Story of Origins
The aim of Thematics is to give users the ability to invest in expert chosen projects, giving everyone access to SwissBorg's research resources with weekly rebalancing of the crypto assets to lower investment risk and keep up with the trends.
Maintaining a 'best of' crypto portfolio all alone is not only difficult, but close to impossible in the dynamic market of today.
SwissBorg Thematics aims to correct this problem.
Thematics is the logical evolution of portfolio building and risk management.
For many in the space, at some point while reading the bios of a project's team of a new layer-2 integrated bridge, DeFi, DAO, or Nuevo protocol token at 3 in the morning, the thought may come to them, “there must be a better way”.
Now, thanks to SwissBorg Thematics, there is a better way.
Thematics was part of the original thesis of SwissBorg, the idea that there should be a safe, simple, expert-driven way to buy a bundle of tokens based on a theme, giving both amateur app users and financial professionals a tool to invest better.
SwissBorg started building Thematics in 2018 with steady progress from this original concept.
For a more detailed breakdown on all this, we have an article on What Thematic Investing is and how to get started and another article on Portfolio Rebalancing for your more detailed.
Thematics Product Overview
Thematics represents a long term goal of SwissBorg, first mentioned in the whitepaper way back in 2017. It is the second real investment tools released by SwissBorg, following the successful launch of SwissBorg Earn.
Thematics is a tool that can be used to invest in crypto themes and trends with less operational risk and more safety, without having to be an expert in crypto and investing.
That being said, Thematics functions with a high range of users in mind, with a smooth user experience that makes it simple to use, while being a powerful tool for advanced investors.
We like the comparison of Apple and Microsoft.
The Microsoft philosophy makes a more customizable operating system with interconnected parts, better for experienced users who like to modify it for their needs.
Apple likes to build streamlined integrated systems where the needs and experience of the human user are the foundations of the system.
Thematics aims to be closer to the Apple model, where clarity and an effortless user experience are the priority, with the possibility for more customizable options in the future.
Everything you need, nothing you don't.
With the Web3 Thematic now available, we will collect user feedback and pair this with our ideas to come up with the next best Thematics bundles to launch, eventually moving to areas like Smart Thematics, Fan Thematics and even Most Secure Tokens Thematics.
How does it work?
When the app user purchases a Thematic, our smart-engine buys 13 coins from whichever of our 5 trusted exchanges has the best price.
These 13 are stored in the user's SwissBorg wallet account , with the same level of security and liquidity as their other crypto assets.
This actual ownership of the token or coin is fundamental and what differentiates Thematics from something like a traditional stock index fund where you are exposed to a given set of stocks without actually owning any of them.
It is an important distinction because with an index fund you own a slice of the cake, whereas with Thematics you own your own cake.
This 'you own your cake' principle will eventually allow users to do cool things with their Thematic like adding or removing a specific token, something impossible in a traditional index fund.
If an app user chooses to 'unbundle' their 13 coins, they would still own all of them, which is not the case in an index fund.
Taking this a step further, another advantage is that any combination of tokens is possible like a Smart Thematics with instructions to search and swap the most promising cryptos, Fan Based Thematics that the community votes on and even a Risk Based Thematics for those with different appetites .
The possibilities are endless.
In its basic form, being a bundle of crypto assets,
the users can diversify their investment while lowering risk as the rebalancing ensures a fair distribution and diversification between the crypto assets composing the Thematic.
Of course when risk is lowered it is most likely that the returns are lower, but all can agree most important is that any returns made by a user are safe and accessible.
What is Rebalancing?
It is no secret that the crypto market tends to fluctuate and change with big moves.
As this is a feature of this emerging technology, investors and investment tools have to make sure they find trusted projects with the lowest possible risk.
Like investing in anything, the more varied the portfolio, the less risk.
The main reason for rebalancing a Thematic is to keep the portfolio of 13 tokens well diversified in order to minimize risk by distributing it properly among the crypto assets.
Every 7 days the profits from the highest performing tokens in the Thematic are reinvested back into the calmer tokens.
This is the rebalancing, effectively minimizing risk by balancing gains between the crypto assets.
As an example, let's say we have a two coin Thematic of ETH and DOT.
In one week the price of DOT increases by 5x and ETH stays the same.
Scenario 1: DOT price falls and your earnings are lost, a common occurrence in a sideway or dropping market, easy come easy go.
In this case the best plan would be taking the profit from this high performer and re-invest it back into the more stable ETH.
Doing this ensures that profit is not lost and increases the chances that you keep it.
After this is done, if the market continues sideways, your profit is secure;
if ETH starts to rise, you have a bigger investment in a more stable coin and if the market drops, it will likely drop less for ETH than for DOT.
Scenario 2: DOT continues to rise beyond the 5x and you lose out on these gains.
The thing is, as the market works as a whole, there is a low chance that DOT would continue to rise without a correction down.
If it does keep rising, it is likely that the entire market is on the rise meaning the whole Thematic will be up.
The smarter option would be to move your quick gains in DOT into ETH in this bull market scenario with gains to be made in ETH too, even if not as big.
This method can be seen as 'reduction of profit for reduction in risk' and is the long term technique of all investors.
So, why do we Rebalance?
Because the crypto market changes are rapid and large, we need an equally fast and accurate investment system that removes as much risk as possible and holds onto gains.
Rebalancing reduces the possibility that the positive moves in the Thematic are lost by stabilizing gains and keeping the Thematic portfolio diversified.
The last market cycles have clearly shown that trends are the main force of change, and if a user catches one – like DeFi and NFTs before – with a balanced and safe portfolio of tokens within the theme, they'll be in a good place.
The Smart Engine
The smart engine was built to buy and sell individual tokens.
One of the toughest challenges for the Thematics team was to make the Smart Engine buy the multiple tokens within a Thematic, and all at the same time.
This breakthrough was a great feat and SwissBorg is extremely proud of their engineers for figuring it out and getting it done!
When an app user invests in a Thematic, the Smart Engine buys the 13 tokens with the same method it uses to buy a single coin.
Behind the curtain, the Smart Engine looks at the 5 trusted exchanges used by SwissBorg, finds the best price and best trade route if the coin must be bought in steps, and makes the purchase.
Scaling this up to 13 coins at once is the brilliance behind Thematics.
With so many projects and tokens out there, and such little time, SwissBorg sees thematics as an investment in time and energy for users, letting our team find the best of the trends and topics while the app user lives their life!
So far the Smart Engine has worked without a hitch and SwissBorg is ensuring that this norm continues, as they look for new tasks and challenges to overcome and build.
What is Reallocation?
Every 70 days the SwissBorg Investment Team checks the 13 coins and tokens in the Thematics to make sure we still have the best selection.
If a token is underperforming and there is a suitable, better performing one on the sidelines that has passed the QC check, it will replace the current one.
Before the new token is added, the Investment Team also decides on the weight of it in relation to the rest of the token selection to ensure the Thematic stays true to its theme and stays at minimal risk while performing at its highest level.
SwissBorg is now the app users research team, finding the best projects in the crypto space and saving the app user all that precious time.
Reallocation is a huge step forward and a powerful tool for thematics and your portfolio to thrive!
Show me the Tech
Thematics has been built in a logical way, moving from what the team had to what the user needed.
The main technical challenge faced by the Thematics team was scaling up the Smart Engine from being able to purchase 1 coin for the best price and path to being able to buy the 13 coins of a Thematic at the same time as mentioned in the previous section.
At the start of this investment tool, there will be execution fees when buying, rebalancing and selling, but no monthly fees.
Later in the year, a monthly fee for everyone will be introduced for the transactions involved.
A dull breakdown of the fees is available in the Thematics app, easy to access and clear.
Show me the Data
At the time of writing the crypto assets for all users of the Web3 Thematic represent the equivalent of $2.7 million from about 6,200 users.
SwissBorgs Flagship Product, Thematics, is Here!
SwissBorgs
SwissBorg expects and hopes that more users will try out the flagship Thematic as Web3, as a group, has out performed Ethereum over the last 2 years – according to SwissBorg's analysis – this is an ideal example of the potential of what these crypto bundles can do !
SwissBorgs Flagship Product, Thematics, is Here!
SwissBorgs
As for ongoing data, SwissBorg plans to release regular data reports on how the thematics are doing to keep everyone up to date and on track.
The Team
It took a lot of good work from many at SwissBorg to make Thematics a reality.
Building something like this is not done by a team of devs in a room with lots of screens and caffeine, it takes a balance of focus on the main idea and inventiveness along the way to get it done.
To find this balance, SwissBorg discovered that creating squads from members in the established teams was the best method, allowing for new groups to collaborate and share the knowledge that a project like this demands.
The teams that built the squads have a wide range of expertise – including backend and frontend engineers, designer, QA folks, data analyst, data scientist, growth hacker, support agent, and more.
The result of this cooperation was a big, autonomous, dynamic squad with all the needed skills;
and the results were great.
Now, as users start to use Thematics,
Roadmap
With the initial concept of Thematics presented in SwissBorg's white paper, this is an important milestone for us that SwissBorg looks forward to building with the help of their community.
Our next significant milestone is Thematics Rewards.
Thematic users will be able to stake all the coins of the Thematic that can be staked – on a trusted exchange, with yield paid out to users.
SwissBorg chose to focus the teams energy on Thematics Rewards as it is important to us and the community.
Rewards give users the opportunity to receive yield on a Thematics by letting SwissBorg stake their Thematics tokens.
We are woking hard on this and hope to show it to everyone early next year, enabling user to benefit from staking.
Putting it all together: A word from Anthony Lesoismier
At SwissBorg, we believe crypto represents a serious investment.
Our mission is to create a range of crypto financial tools that are long lasting and offer everyone the chance to participate in the greatest transition of wealth in history.
For us, the best way forward in this long-distance investment thesis is to package it in a cutting edge interface that is easy and fun to use.
As a symbol of our expertise and divergent positioning we are the first to offer 'Thematics'.
Thematics are bundles of cryptos that are automatically rebalanced – we trade for the user to optimize – and where the tokens are reviewed and reallocated every 70 days by our team of financial experts.
Why is that different from investing in an individual coin?
● The Problem: 95% of tokens die within 1 year of launch – dropping to a value of 0$ with no chance of recovery.
This makes it extremely difficult for anyone to make solid long term investments.
● The Solution: As a correction to this, in Thematics we cherry pick the best cryptos in the associated themes like GameFi, Web3, Social media that we are confident will stand the tests of time and hold strong value.
We help to create your long term investment thesis for crypto, because we all believe this space holds the next generation's Amazon, Netflix, and Meta.
This type of investing with exchanges is very difficult and has its risks, but with SwissBorg it's done safely with 1 click.
We at SwissBorg see Thematics as a giant step forward in the world of responsible crypto investing, and look forward to seeing Thematics grow and thrive for everyone in the community.
