Partnership with Axo

Who is AXO?

Axo is a trading platform built on the Cardano network to leverage a decentralized, efficient, and scalable infrastructure, which combines traditional and decentralized finance by offering a comprehensive set of trading tools. It’s built on-chain for efficiency but handles complex computations off-chain. Axo is focusing on fairness with its verified Order Matching Engine and offers non-custodial asset management. Users can engage in programmable swaps, creating customized trading strategies, and the platform includes advanced risk management tools for a complete trading experience.

How will Xerberus Risk Ratings be integrated?

Integrating Xerberus Risk Ratings into the Axo platform will allow traders to purchase the Xerberus Risk Rated Index directly through self-managed batch or basket buys. These real-time risk ratings will enhance the reactivity of Axo’s indexes to market sentiment and network changes, allowing indexes to quickly adapt to the dynamic landscape of the crypto market, thereby offering users a smart investment strategy. Finally, this integration will allow Axo users to create ad hoc strategies by implementing the Xerberus Risk Ratings in programmable swaps as a trading signal, expanding the available investment strategies even further and, as a candle on the cake, there will be the possibility to perform backtests using open APIs. This means you will soon be able to test the validity of Xerberus Risk Ratings in the quantitive setup you chose.

We did our homework…

At Xerberus, we are obsessed with data veracity, and that is precisely why we have thoroughly backtested the proper functioning of our risk rating applied to random baskets of tokens before finalizing the partnership.

We conducted an extensive backtest on our Risk Ratings to assure ourselves of the validity of our Risk Ratings. The setting of this backtest was harsh; we simulated all possible combinations of buys and sells over the entire time horizon that native assets have been available on Cardano. This backtest of random entries and exits have shown that if such a strategy is applied, the Xerberus Index baskets result in an average return of 15%. This 15% represents the aggregation of all positions. The worst-performing baskets lost 40%, while the best-performing baskets in our setup made more than 200% profit.

It is reasonable to assume that an actively managed portfolio that uses the Xerberus Risk Ratings as part of a larger strategy will outperform the random buys and sells performed. We are excited to see how the community will use them.

For more details and insights, we suggest you catch up with our Twitter/X livestream, where we discuss this topic. Find the link below.


(Image from the livestream)

About Xerberus

Xerberus is a risk rating protocol that provides you with comprehensive metrics to help you know your crypto asset.

Learn more about us, stay connected, and ask questions: