Case Study
seriesOne LIVA Fund
What is the LIVA fund?
The LIVA fund is a Bahamas Securities Commission registered fund that invests in DeFi Products. The purpose of the fund is to provide liquid, secure, and stable investment returns over time on behalf of professional (i.e. institutional and qualified) investors, who seek portfolio exposure to yield producing digital asset vaults in DeFi.
Uniquely, the LIVA fund is a DeFi fund managed by proprietary AI (Artificial Intelligence) driven algorithms targeted at investors more comfortable with traditional investments.
Goals of LIVA fund
- Stable, predictable returns between 15-25% with no or minimal risk to the principal
- Market neutral strategy
- Build a portfolio with the most attractive Risk/Reward Ratio in the DeFi Space
- Investment process for crypto products that is familiar to traditional investors
- No need to convert from fiat to crypto and vice versa by utilizing stable coins
- Fast time to market – average three months or less compared to building a solution, which would take a minimum of one year
Conditions
- Accuracy
- ensure that we have accurate and auditable NAV (Net Asset Value) calculations
- Secure system protecting from misuse and hacking
- access controls – being able to control who is able to invest and withdraw from the fund
- System of checks and balances with multiple authentications ensuring that no single entity can access and manipulate algorithms, steal, or misuse user data
Challenges Addressed
- There is no single viable protocol in DeFi that reliably produces 15 – 25% returns, which means that in order to achieve that goal we needed to stack returns of different protocols.
- Fast-moving 24/7 market requires active 24/7 monitoring.
- Avoid extreme volatility of many crypto assets whereby protecting principal.
- Complexity of the integration of different underlying protocols – complexity drives cost and risk.
- The ultra-short lifecycle of the products we invest in requires constant maintenance and development of protocol integrations.
- Development cost of building the platform is prohibitive.
- Finding the talent in this space is difficult – there are a limited number of experts in this space.
Solution
Yieldster is a DeFi platform that fully automates DeFi investments. It gives investors the ability to run an investment strategy on DeFi including portfolio allocation, arbitrage, and liquidation. Unlike other players in this space, who create walled gardens for their protocols, Yieldster provides a compliance overlay that covers its own protocols as well as others (including protocols from Yearn, Aave, Compound, CURVE, etc.).
Performance
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