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Understand the flagship product of DAOventures in one article: DAO Citadel Castle Vault
DAOventures中国
特邀专栏作者
2021-05-06 03:08
This article is about 1478 words, reading the full article takes about 3 minutes
DAOventures rides on the momentum to launch a highly experimental portfolio strategy, Citadel Vault, a market-weighted index with a very modern twist.

Introduction

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Encrypted assets continue to appreciate, and liquidity mining rewards are attractive.

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Twitter Meme: Citadel (Castle)

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Many ETFs or index funds are based on conventional market weighting methods. Cash is allocated based on the market capitalization of the index constituents, for example, the higher the market capitalization of a company's stock, the greater its share in the stock market index.

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Investment Methodology
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In this case, BTC constitutes nearly half of the value of our index with a dominant weight of just under 50%. The remaining assets are allocated to ETH, stable coins, or other altcoins on Ethereum, and the proportion is arranged according to the market value, and those with high market value are overweight as appropriate.
The weight of each asset under this strategy is as follows:
● Ethereum 35%

● Stablecoins 5%

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modernity

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However, in addition to holding long positions in these cryptocurrencies, our strategy can match positions to create reinvested liquidity mining rewards.
1. Appreciation difference between WBTC and ETH

2. Transaction fees as a DEX liquidity provider

3. Mining incentives given by the platform, such as SUSHI coins, etc.

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asset allocation
Our Citadel vault strategies match positions as follows:
ERC20 BTC accounted for 30%
- Risk exposure: Bitcoin (15% WBTC, 15% HBTC)

- Trading platform: Curve
- Liquidity combination: WBTC-HBTC
- Incentive Token: CRV
WBTC-ETH accounted for 30%
- Risk exposure: Bitcoin, Ethereum (15% WBTC, 15% ETH)

- Trading platform: SushiSwap (LP stakes on Pickle)

- Liquidity combination: WBTC-ETH
- Incentive Token: PICKLE
DPI-ETH accounted for 30%
- Exposure: DeFi Altcoins on Ethereum, Ethereum (15% DPI, 15% ETH) in the form of the DeFi Pulse Index

- Trading platforms: SushiSwap, Onsen
- Liquidity combination: DPI-ETH
- Incentive token: SUSHI
DAI-ETH accounted for 10%
- Trading platform: SushiSwap (LP stakes on Pickle)

- Incentive Token: PICKLE

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high growth

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Our strategy guarantees the liquidity incentives dug out from the daily sales of the above portfolios, buys back more LPs, and continuously increases the value of the portfolio. Our smart contract enables automatic reinvestment.
The portfolio rebalances the weight of each asset on a quarterly basis, returning to the standard ratio described above, ensuring that investors always maintain an ideal Bitcoin weight!

Providing liquidity to the DEX fund pool faces the risk of impermanent loss, that is, for investors, when there is a significant divergence in the value of a pair of assets, the number of holdings of the asset with outstanding performance will decrease. The impermanence risk level of this strategy is high.

About DAOventures
DAOventures aims to reduce the threshold and risk of DeFi investment, and become a smart investment and financial advisor for users, allowing more people to participate freely and intelligently complete DeFi investment. Through DAOventures, users can have one-stop access to diversified DeFi products, including robo-advisory, lending, fund management, derivatives, decentralized insurance, etc.

Given that this innovative strategy is still in the early stages of trial implementation, the hidden dangers of DeFi smart contracts may lead to the loss of investors' assets.


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