Alvara Protocol Testnet Goes Live, Marking Giant Step Toward Democratizing Fund Management

The world of asset management has just made a giant leap toward democratization as decentralized platform Alvara Protocol, which utilizes the ERC-7621 (Basket Token Standard), officially launched its testnet Thursday.

Users now have the opportunity to explore the Alvara Protocol firsthand under a sandbox environment that allows them to interact with other users across the protocol. They can also provide feedback and help shape the protocol's future and impact in not just DeFi, but also in traditional finance (TradFi) sectors.

Alvara said all of its Alvara Factory and Basket Token Standard (BTS) smart contracts underwent extensive audits by leading cybersecurity firm Quill Audits to ensure the testnet's security. For the upcoming mainnet launch, additional audits and comprehensive pentesting will also be carried out.

Alvara is also migrating contracts to the Sepolia test network, since the Ethereum blockchain network's Goerli testnet will be deprecated soon. Users will need sepETH for gas fees and contributions to a BTS on the platform.

The development marks the most significant milestone yet in Alvara's roadmap of democratizing fund management through decentralized finance. "Decentralized fund management is a key driver in the ongoing mission to create a financial system that truly belongs to the people, and we look forward to the help of our community in building the best tool yet for a new, individual-centered, and decentralized world of finance," said Alvara's co-founder Dominic Ryder.

Ryder went on to note that the Alvara team values suggestions and feedback from the community to improve the product and prepare it for an eventual mainnet that should serve not just retailers but institutional investors as well.

Wes Levitt, the co-chief investment officer and head of Europe operations for Alpha Transform Holdings, which is a Key Advisor for Alvara Protocol, sees basket tokens having a significant impact in the financial realm. With Alvara, investors can create on-chain baskets that match the level of exposure they prefer, but with lower fees and increased transparency than other market alternatives, he said.

"Basket tokens will be the mutual funds of tomorrow. In the same way that passive investing revolutionized the traditional finance world, the Alvara BTS will do the same for crypto investment. Currently, there are no easy ways to get crypto sector-specific exposure like to DeFi, AI large cap, etc. Investors must either do the legwork themselves or invest in bespoke funds that charge high fees," Levitt told International Business Times.

Alvara Protocol envisions a democratized world for fund management, wherein users are provided with an innovative tokenized fund factory that leverages DeFi, ups liquidity, maintains transparency, and ensures cost-efficient solutions than traditional hedge funds and exchange-traded funds (ETFs). Alvara's unique ecosystem, which empowers anyone to become a fund manager, promises complete transparency, so investors can confidently contribute to the fund.