In our development phases, before launch of the product to the public, we have engaged in internal testing of the strategies we are intending to offer to Professional and institutional investors this year pending approval. Our testing was based on a total fund allocation of $1,000,000 on October 31st.
Core numbers
10.12%
Total Return
8.96%
Volatility
27.97%
Annualised Return
14.89%
Annualised Volatility
1.63
Sharpe Ratio Annualised
4.94%
YTD Performance
8.71%
Alpha Observed
Despite a rocky Q4 for crypto asset markets and traditional assets alike, with Bitcoin (-1.50%), Ethereum (-9.28%), and the SP500 (-0.27%) declining over the observation period of 31st October 2022 and March 9th 2023, DeFi in particular stable-coin yields detached to offer strong alpha. With declining liquidity and increased volatility, trading through DEX providers generated above average yields for the period.
The DeFi Opportunities product had three core underlying assets in the period, USDDFRAX, USDD3CRV, and IBEURUSDC positions on Curve.fi
at 33%, 33% and 34% respectively. Using the max boost available to stakers on Curve. Yields were generated in principle underlying and in Curve protocol token $CRV. The fund between 31st October to 7th November engaged in Daily compounding, where we sold generated CRV in batches every 24 hours, and re-allocated this capital back into initial weights. From the 7th November to 20th February, we accumulated generated CRV to re-compound into the CRVCVXFRAX pool, which offers aggressive yields and the holding of CRV during this period also gives us directional market exposure during upswings in the market. (See below)
New Planned Allocations
Increased in exposures to CHF and EUR, to counter possible weakness in USD over the coming months with macro economic headwinds particularly in comparison to possible CHF performance during these periods as a 'safe-haven'
Increased exposure to DAI as decentralized providers have proven increased resiliency in stabilizing their Stable values, and our support for new stability mechanisms in MakerDAO.
Allocation of DAI on the AVAX chain, due to recent yield spikes and an ongoing trend towards growing utiliziation of Avalanche based Decentralised finance protocols will increase liquidity demand and lead to strong yields effective.
Disclaimers and notes:
- Please note, while we are open and proud of the performance of our allocations in this test phase, fair disclaimers must be offered that these are unaudited internal testing statistics, while we attempt to our best ability for these figures to be as accurate as possible, these figures are unaudited, generated on internal data of our planned allocations over the period analysed, our allocations and planned allocations should not be considered as financial advice, decentralised finance and crypto assets can incur high risks to private investors, particularly without competent understanding of the execution and allocation of funds. Past performance may not be representative of future performance and please do your own research or consult an advisor about whether an allocation with such a risk profile will fit your needs.