Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom), Written by LeftOfCenter, published with permission.
Editor's Note: This article comes from
Chain News ChainNews (ID: chainnewscom)
Su Zhu
, Written by LeftOfCenter, published with permission.
You must not know that Su Zhu, a star cryptocurrency trader with nearly 40,000 followers on Twitter, is actually a "native" Beijinger. In addition, you may not know that this digital asset hedge fund manager with a background in traditional finance and good at trading has already devoted himself to the investment wave of decentralized finance (DeFi).
Su Zhu is the co-founder, CEO and chief investment officer of the hedge fund Three Arrows Capital (Three Arrows Capital). The Three Arrows Capital he founded is currently one of the most active cryptocurrency hedge funds and has been boldly experimenting with different types of encryption In the field of market structure investment, in addition to the quantitative investment of various encrypted currency assets, this year Three Arrows Capital also became a shareholder of Deribit, an encrypted derivative trading platform, and is also the single institutional investor with the largest share of Grayscale's Bitcoin trust fund. And now, this hedge fund has quietly become a waver in the field of DeFi investment that cannot be ignored.
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It's time to take a full look at Su Zhu - the former high-frequency trader, today's DeFi waver.
For more people, what is easy to see is Su Zhu, who exists as a "well-known Internet celebrity in the cryptocurrency circle". He works hard on his Twitter and frequently expresses his judgments on the trend of the cryptocurrency market. His insights and insights have been quoted by various media and made him a well-known Internet celebrity in the encryption circle. But at the same time, it is difficult for you to tell which of these two identities (Su Zhu as a KOL in the encrypted world or the founder of an encrypted fund) is more famous?
By chance, we had the opportunity to have an in-depth dialogue with Su Zhu because of a live broadcast of "Lianwen×Crypto Tonight". He also satisfied our curiosity and gave us the opportunity to unravel his encryption Another identity besides the Internet celebrity status and the founder of the fund-a native Beijinger.
How has his experience of living and working between the East and the West influenced his way of thinking? How are these thoughts reflected in his encryption investment strategy? Of course, as an encryption fund investor, Su Zhu also shared with Lianwen the investment strategy and unique advantages of Three Arrows Capital, as well as his views on the emerging DeFi income farming.
A Pekingese's Encrypted World Journey
Kyle Davies
Except for the sharp and sharp comments on the cryptocurrency market that are frequently posted on Twitter, Su Zhu's personal life as a "net celebrity trader in the encryption circle" is not well known.
Su zhu's "native language" is Chinese, but he is better at expressing his views in English. Obviously, this native Beijinger who immigrated to the United States with his parents as early as 6 years old has long been accustomed to thinking in English.
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Three Arrows Capital was named by Kyle Davies and designed a very "simple" Logo for it. Saying it is concise is actually a bit crude. In fact, this Logo was designed by Kyle in Microsoft Paint during his busy schedule, and has been used until now.
Although simple, the meaning of the Three Arrows composed of three arrows is straightforward. The three arrows tied together are stronger and more stable than loose individuals that are prone to breakage, Su Zhu said, "symbolizing the invincible team spirit and cohesion".
Investigate the reason again, "Three Arrows" comes from the allusion of "Three Arrows" of the Maori family during the Warring States Period in Japan, which means "If the three brothers are not united with each other, they will be broken like arrows one by one; but if they become Three arrows, it is not easy to be broken", warning that only by working together can we defeat the enemy.
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"Three Arrows" comes from the allusion of "Three Arrows" of the Maori family during the Warring States Period in Japan
As the earliest co-founders of the team, the partnership between Kyle Davies and Su Zhu can be traced back to junior high school and college.
After immigrating to the US at age 6, Su Zhu went through high school at Phillips Academy and college at Columbia before working as a derivatives trader at Credit Suisse in Tokyo and Deutsche Bank in Hong Kong. From school days to the workplace, Kyle Davies and Su Zhu have been classmates and colleagues. In their spare time, they will spend a lot of time eating and exercising together. The two started their own business in 2012 and established Three Arrows Capital in San Francisco.
From Boston, New York, Tokyo, Hong Kong to Singapore, the two founders of Three Arrows Capital have been going in and out together. They know and trust each other very well, and they cooperate very harmoniously. Just like the Mitsuya spirit represented by this highly symbolic Logo, whether as a partner or a classmate, the cooperative relationship between the two has gone through the test of time for many years.
Su Zhu said, “Our different perspectives on things help to understand the overall situation. This is especially important when trying to understand opportunities in different time frames.”
In 2013, Three Arrows Capital relocated to Singapore. After being born in Beijing, growing up in the United States, and traveling to many cities in Asia, Su Zhu and his Three Arrows Capital finally chose to settle in Singapore, and lived in this place where Chinese and Western cultures converge to join their entrepreneurial wave. In addition to being "a business-friendly environment that respects the free movement of labor and capital, while having a strong infrastructure," Su Zhu said, it is also a crossroads of "elements of East and West."
For a long time, Three Arrows Capital has occupied an important position in the foreign exchange trading of the global emerging markets, and once accounted for nearly 8% of the foreign exchange trading volume of the global emerging markets. In 2015, the investment firm had 35 employees.
The two first encountered the beauty of Bitcoin arbitrage trading in Singapore. Later, they gradually discovered that Bitcoin occupies a very important position in replacing the traditional financial system, and began to devote themselves to the field of cryptocurrency in September 2018. The entire company's business has shifted from traditional finance to the cryptocurrency market.
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East-West Fusion Perspective and Encryption Investment Viewpoint
Living and working in different cities, Su Zhu has become accustomed to understanding different cities and societies as an "outsider" and viewing everything from a critical and comparative perspective.
He said that such a way of thinking is conducive to digging order out of chaos, identifying and digging out useful information or knowledge from chaotic and relatively scattered channels and markets, especially in the relatively early encryption market.
In fact, as an investor who has transitioned from traditional finance to the encryption industry, Su Zhu believes that the biggest difference between traditional finance and the encryption circle is that the order in traditional finance has already been established, so there are many established studies available for traders. However, the cryptocurrency industry is at an early stage, chaotic, and the market lacks a clear asset valuation model, which provides opportunities for investors oriented by "investment themes". At the same time, it also brings difficulties to investment participants. It is the basic quality of a cryptocurrency investor to maintain an inclusive and open attitude to pay attention to everything happening around him, and to analyze it with critical thinking.
"Keeping an open mind to see many different types of market structures, keeping an eye on what's happening around you at any time, and being able to seize opportunities decisively without restrictions is Three Arrows Capital's competitive advantage." He said.
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The office of Mitsuya Capital in its early days
For example, for a period of time, Ethereum was very popular in the West, but not so popular in China, and Chinese cryptocurrency investors preferred the narrative of the Ethereum killer. Now, however, the situation has changed, with the West paying more attention to the Ethereum killer and the East focusing more on Ethereum itself.
Additionally, he said, bitcoin forks have never had much support in the western community, whereas in the east they have more supporters.
The phrase "one day in the currency circle, one year in the world" is often used to describe people's rapid changes and fluctuations in the currency circle. For Su Zhu, who used to be a high-frequency trader, it is obvious that he has been able to deal with these rapid changes. He said that in addition to being keenly aware of what is happening around you and looking at things critically, it is more important to perceive the undercurrents under the surface, understand the gradual progress that the encryption industry is making and invest in these areas.
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Investment territory
Su Zhu also talked to Lianwen about Three Arrows Capital's investment strategy, which is a mixture of "market neutral arbitrage trading" (market neutral arbitrage trading) and long-term long-term investment.
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Three Arrows Capital Invests in "Foundation Layer"
On this basis, Su Zhu is very optimistic about the DeFi track, investing in projects including Aave, Synthetix, DerivaDEX, mSTABLE, dHEDGE, Kyber and Futureswap, and established a special fund DeFiance Capital for this purpose, led by well-known early DeFi participants Operated by Arthur Cheong.
Arthur Cheong is also a well-known opinion leader in the DeFi community. He once published a 33-page SNX report when the price of the SNX token was 4 cents, and he was bullish on the value of the token. At present, the price of SNX tokens has been rising all the way, reaching a maximum of around $4.
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From the perspective of investment portfolio, Sanya Capital has invested in almost all decentralized contract trading platforms.
In Su Zhu's view, decentralized derivatives trading is a major current trend. As a trader, he believes that the current situation of centralized derivatives proves the market's demand for cryptocurrency derivatives, and the current centralized derivatives tools are very mature, which brings opportunities to decentralized derivatives platforms, and DeFi The advantage is that development can be customized according to needs, and it can provide a unique composable experience.
The many ways in which collateralized and exchange-based contract products can interact with each other will be very useful and interesting, he said. Therefore, he firmly believes that there may be more than one ultimate winner on this track, but a derivatives platform covering many different mechanisms from AMM to centralized limit orders.
Su Zhu said that he and his team are still actively researching all mainstream governance tokens and DeFi protocols, hoping to find future stars from them.
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"Alpha Investment Strategy"
Su Zhu said that the trading master he admires most is Soros, especially his sentence - "the more the market believes in the truth of something, the more likely it is to become a fact". Inspired him a lot.
For example, in the DeFi Yield Farming craze that is currently in full swing, Su Zhu has personally participated in various yield farming activities. This, he said, reflects Three Arrows Capital's "alpha investment strategy"—being as active as possible in the projects it invests in.
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