Liqwid Finance, the Switzerland-based decentralized interest rate protocol, debuted a Cardano-based exchange-traded product (ETP).
The ETP launched on March 14 will leverage the expansion and staking incentives associated with the ADA token within the Cardano ecosystem. Known as CASL, it was introduced in collaboration with Issuance.Switch AG has been listed on the SIX Swiss Exchange.
The CASL ETP: Cardano Staking Tokenized
CASL was created to mirror the performance of the ADA token and provide returns based on profits generated through staking the asset. This approach presents investors with a dual advantage: they gain exposure to the potential price appreciation of ADA and benefit from the additional rewards obtained through staking.
Thus, this dual approach boosts the overall return on their investment. Florian Volery — the co-founder of Liqwid Finance — remarked that CASL embodies the strengths of traditional and decentralized finance realms. He added that CASL is a cost-effective, liquid, and institutionally robust product that bridges the gap between conventional financial practices and the rapidly expanding domain of digital assets.
Volery further said that the new ETP will provide investors with exposure not only to ADA’s market performance but also to the rewards derived from staking the token.
In addition, the co-founder opined that the launch of this product positions CASL as a leading offering in the finance landscape. A primary difference between this product and cryptocurrency investment products is that it isn’t solely focused on the asset’s price fluctuations.
CASL’s Uniqueness
CASL distinguishes itself by offering a competitive management fee of 1.5%, providing investors with a more cost-effective option than other similar offerings in Europe. Moreover, the ETP is fully backed by physically held ADA tokens stored securely offline, effectively mitigating the risks associated with online threats.
In addition, Liqwid manages the staking process for the ETP on the Cardano network. A Liqwid contributor, Johnny Sachs, posted on his X handle about this expectation for the recently launched ETP.
Exciting News Alert!
I’m thrilled to announce a groundbreaking development from the Swiss SIX exchange! Today, I had the honor of ringing the bell to officially launch the listing of the Cardano Staking ETP by Liqwid (Ticker: CASL). pic.twitter.com/TXORdYbcAR— Johnny Sachs (@sachs_johnny) March 14, 2024
One notable feature of the CASL ETP is its instant liquidity, enabling investors to access their funds without lock-in periods, a noteworthy departure from typical on-chain staking arrangements. This feature, coupled with the involvement of Swiss entities, provides greater confidence in the reliability of this investment product.
