What is QQQAI?

QQQAI is an enhanced hedge fund based on the NASDAQ-100 Index (NDX100), designed to optimize returns and provide downside protection through options strategies, thereby maximizing returns while minimizing risks. Its strategy relies on options trading and volatility management to help investors achieve higher returns in bull markets and reduce risks in bear markets.

As a smart-enhanced equity ETF, QQQAI combines index tracking and options strategies, not only improving returns but also offering protection through options strategies during unfavorable market conditions. For long-term and institutional investors, QQQAI provides the perfect balance of steady growth and flexible hedging.

QQQAI-S is the on-chain tokenized representation of QQQAI fund shares, where each QQQAI-S token represents 1 unit of QQQAI fund ownership. Web3 investors can subscribe to QQQAI-S tokens using stablecoins, thereby gaining indirect ownership of QQQAI fund positions, with the flexibility to freely transfer these tokens among investors. Furthermore, holders can utilize QQQAI-S in DeFi protocols for lending, liquidity mining, liquidity mining, significantly enhancing capital efficiency.

ETF Comparisons: QQQAI / QQQAI-S vs. Other ETFs

Compared to traditional stock ETFs, bond ETFs, and treasury ETFs, QQQAI delivers five core advantages tailored for yield-seeking investors requiring controlled risk exposure.

Dimension	QQQAI / QQQAI-S	Traditional ETFs (QQQ/SPY)
Return Structure	Index returns + Options strategy alpha	Pure index tracking
	✓ PUT options premium reduces cost basis	✗ No derivative-enhanced returns
	✓ OTM CALL positions capture upside
Downside Risk Mitigation	Tail-risk hedging mechanisms	No active protection
	✓ Long-dated OTM PUTs hedge extreme downside	✗ Full exposure to market crashes
	✓ Volatility arbitrage during IV spikes
Volatility Alpha	Dynamic volatility optimization	Passive volatility exposure
	✓ Low IV: Amplify returns via option overlays	✗ Neutral to volatility regimes
	✓ High IV: Lock gains through delta hedging
Position Strategy	Multi-timeframe hybrid approach	Single holding strategy
	✓ Short-term: Systematic PUT selling for income	✗ Static index replication
	✓ Long-term: OTM CALL/PUT combo for convexity
Institutional Utility	Sophisticated strategy integrator	Basic allocation vehicle
	✓ Embedded institutional-grade options strategies	✗ Requires manual derivatives construction
	✓ Enhanced Sharpe ratio (risk-adjusted returns)	✗ Returns constrained by directional markets
	✓ Built for Hedge Funds/Family Offices/Pension Funds	✓ Retail-oriented

QQQAI-S Competitive Edges

Compared to traditional ETFs, QQQAI-S revolutionizes investing through Web3 tokenomics – lowering barriers, amplifying liquidity, and enabling DeFi interoperability. Its advantages in asset liquidity, accessibility, capital efficiency, and DeFi composability redefine global investing for Web3 natives.

1. Instant Subscription/Redemption & Enhanced Capital Efficiency:

Instant Subscription & Redemption: Investors can subscribe to QQQAI-S instantly with USDC, bypassing periodic fund subscription cycles.

Automated settlement: Smart contracts mint/burn QQQAI-S tokens upon USDC payment, with multi-sig CEX accounts (e.g., Binance) handling fiat conversions autonomously.

Secondary market liquidity: Trade 24/7 on DeFi DEXs/RWA marketplaces with minimal slippage.

2. Democratized Access for Mass Adoption:

Institutional vs Tokenized: Minimum investment drops from $500k (traditional) to $100 (QQQAI-S), redemption threshold from $100k to $1k.

Web3 inclusivity: Enable micro-investing for retail users without capital barriers.

3. 24/7 Global Liquidity Engine:

Break free from traditional market hours (NYSE T+0/T+1).

Trade QQQAI-S peer-to-peer 24/7 via blockchain settlement.

Deep liquidity pools on Uniswap/Curve/Balancer.

4. Cross-chain Interoperability:

Multi-chain deployment: Native support for Ethereum/Solana/Movement.

Seamless asset transfers via LayerZero/Wormhole bridges.

5. DeFi Supercharger:

Staking: Earn yield via Ondo Finance/Maple Finance/Aave.

Collateralization: Borrow against QQQAI-S positions for leveraged strategies.

Liquidity Mining: Capture fees on Uniswap/Balancer pools.

6. Transparent & Verifiable Infrastructure:

Smart contract execution: Eliminate intermediary manipulation risks.

On-chain auditability: Real-time tracking of NAV/trades/fund flows.

7. Cost Efficiency Revolution:

Slash traditional fees: No broker/management/custodian charges.

Direct DEX/RWA platform trading maximizes net returns.

8. Institutional-Grade Investment & Capital Optimization:

Institutional investors gain asset allocation flexibility: QQQAI-S serves as RWA (Real-World Assets) collateral for structured products, liquidity pools, and lending protocols, enhancing capital utilization rates.

Web3 financial institutions can utilize QQQAI-S as foundational assets to construct decentralized index funds or yield-optimized strategies.

Web3 institutions leverage QQQAI-S to access the DeFi ecosystem, amplifying asset liquidity and revenue streams.

QQQAI Tokenization Process

QQQAI employs RWA tokenization, where an SPV (Special Purpose Vehicle) holds fund shares and tokenizes them via the BlockRock platform to generate QQQAI-S tokens.

Asset Custody & Token Issuance

1. The SPV (Special Purpose Vehicle) subscribes to QQQAI fund shares.

2. The SPV custodies fund assets to ensure compliance and manages capital accounts.

3. The SPV issues QQQAI-S tokens through the RWA platform (BlockRock) for Web3 investor subscription.

4. Coinbase Custody safeguards stablecoin reserves, ensuring asset security and enabling fiat conversion.

5. The SPV manages QQQAI-S token redemptions, allowing eligible users to exchange tokens for fund shares.

6. Independent auditors conduct regular SPV asset audits and publish reports to guarantee financial transparency.

Token Subscription & Trading

1. QQQAI-S Subscription: Investors use USDC/USDT/fiat to acquire QQQAI-S tokens.

2. Secondary Market Trading: QQQAI-S is tradable on Uniswap/BlockRock exchanges.

Liquidity Management Framework

1. Enhanced Returns:

Establish QQQAI-S/USDC pools on Uniswap/Balancer/Curve to enhance market depth.

Market Makers (MMs) provide liquidity to improve trading depth.

2. DeFi Protocol Integration:

Collateralized Lending: QQQAI-S serves as collateral to borrow stablecoins via Aave/Compound/Ondo Finance.

Staking: Users stake QQQAI-S in DeFi protocols to generate yield.

3. OTC Buyback:

MMs, hedge funds, and VCs provide OTC liquidity support.

As a closed-end fund with quarterly redemptions, QQQAI allocates $10 million USDC to enable 24/7 instant liquidity for QQQAI-S token holders.

QQQAI/S Pricing & Market Performance

QQQAI-S Token Price: Dynamically determined by supply-demand dynamics on secondary markets (DEXs).

QQQ-S NAV: Reflects the actual value per fund share (total assets minus liabilities). NAV is published quarterly via audited reports.

Token Price vs. NAV Comparison

Dimension	Token Price	Token NAV
Pricing Mechanism	Market-driven supply-demand	Calculated from underlying assets
Update Frequency	Real-time (second-level)	Quarterly + event-driven adjustments
Key Drivers	Liquidity, sentiment, DeFi activity	Underlying asset moves, options strategy returns
Deviation Risk	Potential premiums/discounts	Reflects intrinsic fund value
Primary Use Cases	Short-term trading, DeFi leverage	Long-term investing, institutional audits

Market Performance

Target Yield: 15% ~ 30%

QQQAI Future Outlook

Web3Port will leverage its strong resource network to drive the adoption of QQQAI-S within the Web3 financial ecosystem by deepening partnerships with DeFi protocols and RWA agreements.

Lending Market

Objective: Use QQQAI-S as collateral to support lending and leverage trading.

Collaborating Protocols: DeFi lending platforms such as Aave, Maple Finance, Goldfinch.

Liquidity Mining

Objective: Provide liquidity on DEX platforms like Uniswap and Balancer, and reward LPs (Liquidity Providers).

Collaborating Protocols: Uniswap V3, Balancer, Curve Finance.

Staking

Objective: Allow investors to stake QQQAI-S tokens and earn fund returns or protocol rewards.

Collaborating Protocols: Ondo Finance, Lido Finance, Yearn Finance.

Cross-Chain Interoperability & Integration

Objective: Ensure QQQAI-S tokens can freely circulate across multiple blockchains, enhancing asset accessibility and capital efficiency.

Supported Chains: Polygon, BNB Chain, Solana, Movement, etc.

FAQ

1. How to buy QQQAI-S tokens?

You can purchase QQQAI-S tokens using stablecoins (e.g., USDC) through the BlockRock platform.

2. How does QQQAI-S increase liquidity?

Investors can trade QQQAI-S on decentralized platforms like Uniswap, enhancing liquidity through DeFi protocols.

3. How does QQQAI-S differ from traditional investment funds?

Traditional funds have investment thresholds and trading time limits, while QQQAI-S leverages blockchain technology to lower barriers and supports 24/7 trading.

4. Which DeFi Platforms Support QQQAI-S?

Web3Port plans to expand QQQAI-S’s DeFi ecosystem integrations, including:

Liquidity Trading: Trade on DEXs like Uniswap, Balancer, Curve.

Lending: Use as collateral to borrow stablecoins via Aave, Compound, Ondo Finance.

Staking: Earn yields by staking QQQAI-S in DeFi protocols.

5. How Does QQQAI-S Ensure Investor Safety?

Smart Contract Audits: All contracts audited bytop-tier security firms with public reports.

Asset Custody: Fund assets held by regulated financial institutions for compliance.

Redemption Mechanism: BlockRock operates USDC redemption channels for instant liquidity.

6. Who Can Use BlockRock?

Global Investors (compliant with regulations).

Institutional Investors (hedge funds, family offices, asset managers).

DeFi Participants (Web3 wallets, protocols, exchanges).