Strategy Vaults
On-chain strategies provided by top crypto-managers
Last updated
On-chain strategies provided by top crypto-managers
Last updated
The approved strategy managers on the Bracket Platform will offer their various yield generating strategies as strategy vaults in their attempt to generate . Strategy vaults are where brktETH holders deposit their tokens to participate in these passive-investment opportunities.
Bracket will offer on-chain strategies that will be managed by a highly-vetted set of top crypto-managers. Some of these vaults may also be automated strategies such as leveraged looping etc.
The investment statement from the manager of how they intend to generate ETH+ returns.
A history of return or, a target return for newly launched vaults.
Any restrictions on deposits or withdrawals, and the associated delays of each.
Fees that will be charged.
The NAV value for the strategy, and the update schedule.
The whitelist of investment capabilities the manager is allowed to invest in.
Eventually, we will try to show Statistic on the current asset distribution including:
Chains
Protocols
Assets
Leverage used
The goal is to be as transparent as possible with the investors in all the strategies.
Managers will not have the the ability to move money out of the platform as they cannot go outside the Policy Managed Wallet's capabilities without approval.
Managers will interact only with whitelisted on-chain activities.
Some aspects of their stated investment strategy will be monitored and enforced by the platform.
Performance will be calculated in a consistent way across strategies to maximize comparability.
All terms set by the managers such as fees, withdrawal queuing, investment minimums and so on, will be enforced and managed fairly by the platform.
The description of strategies and other details will be in a uniform and comparable format (as much as possible).
All assets must remain on-chain, no CeFi or off-chain protocols will be used.
A rebasing token (similar to a-token) is issued for each vault so the user can track their investment. A rebasing token has a number of shares and a balance. Shares do not change unless more money is invested or withdrawn. The balance is reported in brktETH and changes based on the vaults more recent Net Asset Value (NAV) per share. To calculate calculate the value of one's holdings in USD, the balance is multiplied times the USD/brktETH exchange rate.
These values are reported via our front-end, but are also available via the shareOf and balanceOf calls directly on the smart contract.
When an investment is made, the user specifies the amount of brktETH they would like to deposit. When a withdrawal is made, the number of shares to be sold must be specified. Wallets such as MetaMask use the balanceOf function to determine the value of your holdings for your shares. So can view your value in brktETH in your wallet in addition to the number of shares.
Each vault will periodically report official Net Asset Values, which is the value of the vault's assets per share after all fees, denominated in brktETH. The NAV update frequency policy will be stated on the investment details page. A NAV value of 1.2e18, using the standard 18 digit implied decimal numbers, means that each vault share is worth 1.2 brktETH. The NAV is required to be updated on a regular schedule by the manager at a specific time of day. The schedule of NAV updates is detailed on each fund manager's detail page on the app. Once an NAV update time has passed, the vault will be temporarily locked for new deposits until the NAV is updated. Withdrawal requests are for future NAV updates, so they can still be entered at any time. This is important or users could chose to enter the vault at old pricing and thereby secure a valuation advantage. When the NAV is updated, pending deposits and withdrawals that are scheduled to process that NAV will be valued according to that NAV. We also ensure the withdrawals are fully funded by the manager prior to accepting the NAV. To help avoid any bad NAV's being entered by managers, a set of rules are in place in terms of maximum deviation since the prior NAV evaluation, based on the market's performance. If our safety rules are triggered, bracket management must also sign off on the NAV change, perhaps after re-verifying the unexpected deviation with the manager is indeed correct. While Bracket cannot update NAV for a Managers, the manual review process is there to ensure the official NAV is accurate before it's accepted.
Further, there will also be Vanity Net Asset Value updates that are NOT used to process deposits / withdrawals, but provides more frequent valuations to investors so they can have a better indication of vaults performance between the NAV updates. The Vanity NAV may be updated as frequently as the manager chooses.
Deposits entered before a NAV's update time are processed when the next NAV is updated. At the time the deposit is entered the amount of brktETH is known, but the number of shares cannot be determined until the next NAV is updated. Emails are sent to notify clients when a deposit is made and then a second email when the number of shares are determined.
Withdrawal requests are processed at future NAV update times. Please check each vault's withdrawal time delay policy. The reason for this is that the managers needs time to unwind their positions and fund the withdrawal amount. When a withdrawal is first entered, it is a requested withdrawal and a future timestamp is assigned when the user can come and claim their withdraw after the NAV update is updated for that claim time. So a user cannot actually claim at that exact claim time, and has to wait until the NAV is updated.
The number of shares is known at the time of request, but the amount of brktETH they receive for those shares is not known the next NAV update (similar to deposits). Even if the user comes back long after their claim timestamp, their claim amount of brktETH is frozen as of that time.
Time X: The user requests a withdrawal of 10 shares. A time of time Y's NAV update is returned.
The next NAV will be calculated at time Y, and the amount of brktETH returned for the 10 shares is known.
Time Y: The NAV is not yet processed so the user still cannot claim their withdrawal.
When the NAV is updated after time Y: Now the user can claim their withdrawal at the NAV previously calculated after time Y (step 2 above).
We will send out an email at the time of request, a reminder email when the withdrawal is ready to be claimed, and a last email once the claim has been made.
In the case of a fund closing, every user will be processed automatically for a full withdrawal.
In the case of a fund transitioning to a new investment policy that is a significant change, any user that does not explicitly "opt in" for the transition will be processed automatically for a full withdrawal.
Even if the fund initiates the withdrawal, claimants will still need to come back and claim their withdrawal after the claim timestamp time.
When a new vault is launched it has no funding. It is advantageous to give a short period of time for the fund to build up a minimum amount of capital before actually starting the fund management.
During this pre-started period a user that deposits funds can withdraw their money immediately, with no delay or fees taken.
When a vault starts, it begins with the NAV of 1.0 brktETH per share, and any pre-deposited funds are brought in at that 1.0 valuation. After the vault starts, users are subject to the normal withdrawal period delays as described above.
Vault APY estimation Vaults will have an APY estimation that is annualized based on return since inception of the strategy. These figures are updated as managers post their NAV updates, either Vanity NAV and the Official NAV.
Bracket will provide a number of important services to improve investor safety. Specifically, strategies will be controlled though a smart contract or via a wallet with controlled capabilities as provide by our partner Fordefi ():
A safe process for a manager to. Users will not have a significantly change made to one of their investments vaults without the user explicitly opting in.