A DBT, or Digital-Basket-Token is a type of managed digital asset product that tracks a basket of underlying digital assets which are listed on the HootDex Digital Asset Swapping System. DBTs are traded on HootDex just like other digital assets, with a liquidity pool associated with them and register in real-time on the Pecu Novus Blockchain, which makes them more liquid than a typical digital asset product.
Although they were originally conceived on HootDex, they were created for potential mass adoption across all digital asset exchanges, promoting inclusion as is the core goal of the Pecu Novus Blockchain Network itself.
DBT’s are priced at fair market value of the underlying digital assets in the DBT itself. So a Fair Value Calculation is utilized and the pricing is based on exactly that in real-time, this eliminates any possible pricing manipulation or major disparities from exchange to exchange.
DBTs are seen to become a popular digital asset choice for both individual and institutional investors. They offer a number of advantages over other types of digital asset investments, including:
Diversification: DBTs allows for portfolio diversification with exposure to a basket of digital assets instead of just a single digital asset.
Liquidity: DBTs have liquidity pools associated with them and traded on HootDex and will more than likely make their way to other digital asset exchanges, which makes them more liquid than other digital asset vehicles.
Transparency: DBTs on HootDex automatically disclose their holdings in real-time to the general public. This makes them more transparent than other types of digital asset vehicles.
Cost-effectiveness: DBTs have low transactional fee associate with them and no gas fees if swapped on HootDex.
DBTs can be a good choice for those individuals and institutions that are looking for a diversified, liquid, and transparent digital asset exposure option.
Real-Time Disclosure on HootDex
DBTs listed on HootDex follow a real time disclosure policy, making them a shining example of transparency. In real time, these tokens are required to reveal their holdings, offering individuals, institutions and other exchanges an invaluable window into the assets that comprise the DBT. This means that anyone can monitor and track the performance of the DBT, akin to the way they would scrutinize the stocks in a traditional investment portfolio.
Oracle of Transparency
HootDex’s commitment to transparency sets a precedent in the digital asset industry. It becomes the oracle of pricing transparency, a source that individual investors, as well as institutions, can easily reference to verify the fair market value of the underlying digital assets within the DBTs in real-time. This approach ensures that the pricing of DBTs accurately reflects the combined worth of the assets they represent. As a result, DBTs avoid the risk of massive spreads or any potential price manipulation that can occur on exchanges listing these tokens. Investors can rest assured that the value of their DBT investments is based on a fair and equitable assessment.
Why Transparency Matters
Transparency matters in the digital asset space for several reasons:
Informed Decisions: Transparency empowers investors to make informed decisions about their investments. Knowing what assets are held within a DBT allows investors to assess the potential risks and returns associated with these tokens.
Preventing Manipulation: The automatic real-time disclosure of holdings acts as a safeguard against market manipulation. Investors can trust that the pricing of DBTs is based on an accurate representation of the assets they contain at any particular time.
Tracking Performance: Investors can actively track the performance of their investments in real-time, facilitating a clear understanding of how their portfolio is evolving over time.
In a market where clarity is paramount, DBTs on HootDex are paving the way for the future of digital asset investments. HootDex is helping to build trust and confidence throughout the global investment community, which is essential for the long-term growth and adoption of digital assets.
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