ETH+ DeFi Yield, 10% Target Rate
Last update: Monday, Jan 21st, 2025
Bracket is pleased to present the first actively managed vault on the platform, the DeFi Yield ETH+ 10% Target rate vault* Administrator: Boreal About the Strategy: The strategy deploys to vetted DeFi protocols seeking risk-adjusted ETH-denominated yields. Its objective is to generate market-neutral returns in DeFi by capitalizing on yield opportunities while managing risk and limiting exposure to market volatility.
The administrator employs investment strategies adapted from traditional finance, such as liquidity provision, futures basis, yield arbitrage, and tactical leverage, to build robust systems designed to generate desirable risk-adjusted returns.
The approach focuses on leading Layer-1 and Layer-2 blockchains and protocols and relies on extensive risk management expertise developed over multiple market cycles, ensuring strong performance and security.
BBOR1
Fees:
Performance
30%
Must exceed water mark for positive return
TVL
1.5%
Bracket platform flat fee (1.0%) + Boreal management fee (0.5%)
Source of yield:
Liquidity provisioning Identify the highest risk-adjusted yield opportunities by providing liquidity to leading decentralized exchanges and protocols.
Futures basis Decentralized perps offer a basis premium to CeFi futures, while providing the opportunity to earn additional yield vs holding the spot.
Yield arbitrage Risk infrastructure that maximizes capital efficiency safely via inexpensive tactical leverage against yield-bearing collateral.
Special situations Actively seeks out opportunities to earn competitive yield while betting against assets with flawed fundamentals (eg, stablecoin depeg).
Enforced Capabilities: Policy Managed Wallet Address: 0xD40a658E89170B3FD28009aE55c4D98fe2ad6fb0 Funds movement is limited by the Bracket Protector for MPC wallets, the Policy Managed Wallet, with Bracket Platform serving as a policy administrator. Neither Bracket nor the fund manager/advisor can unilaterally withdraw funds out of this wallet. Funds are non-custodial and limited to the following protocols, assets, and bridges: Decentralized Exchanges (DEXs)
The strategy leverages top DEXs to enable efficient asset swapping, liquidity provision, and yield opportunities:
Uniswap v3: Versatile DEX with concentrated liquidity.
1inch: Aggregates rates across DEXs for optimal pricing.
Curve & Convex: Specialized in stablecoin trading with efficient liquidity.
Balancer: Provides flexible liquidity pools.
Aerodrome: Enhances liquidity and trading capabilities.
Pendle: Tokenizes and enables trading of future yield.
Umami: Focuses on providing sustainable and real yield strategies for DeFi users.
Yieldnest: Enables cross-platform yield optimization by aggregating liquidity opportunities.
Spectra: Integrates AI-powered optimization for liquidity provision and trading efficiency.
Lending and Borrowing Protocols
The strategy optimizes capital efficiency by employing robust lending and borrowing protocols:
AAVE & Compound: Trustless lending and borrowing platforms.
Morpho Blue: Enhances peer-to-peer lending efficiency.
Dolomite: Combines lending with margin trading.
Frax Lend: Focused on stablecoin lending.
Moonwell: Decentralized lending and borrowing protocol native to the Base network, optimized for security and scalability.
Leverage and Advanced Lending
The strategy incorporates advanced tools for leveraging positions and unique borrowing solutions:
Gearbox: Offers composable leverage solutions.
Contango: Enables fixed-income and forward trading strategies.
Cross-Chain Bridges
The strategy integrates various cross-chain bridges:
Stargate, Optimism Bridge, Base Bridge, Avalanche Core Bridge: Secure and efficient cross-chain solutions.
Debridge & Across: Fast bridges for low-latency transfers.
CCTP: Circle-powered stablecoin transfers.
Superbridge & Arbitrum Bridge: Flexible bridging options.
Supported Assets
The strategy supports a wide range of assets for liquidity, stability, and innovation:
LSTs (Liquid Staking Tokens): stETH, wstETH, rETH, weETH, sfrxETH, cbETH, WBETH, METH, pufETH, liquidberaETH,
Ethereum-Based Tokens: ETH, wETH.
Stablecoins: USDC, DAI, USDT, FRAXBP, TUSD, GUSD, LUSD, PYUSD, sDAI, USDS, USDe, USD0, crvUSD, USDR.
Other Lending/borrow assets: mwETH, GMWETH
Other Wrapped Assets: wBTC: A wrapped version of Bitcoin for DeFi use cases on Ethereum.
Blockchain Networks
The strategy ensures interoperability by utilizing multiple blockchain networks: Ethereum, Polygon, Arbitrum, Optimism, Base, Avalanche.
Enforced Deposit and Withdrawal Policies:
Deposit Request
By 7pm EST Monday (00:00 UTC Tuesday)
Deposit Processed
By 7pm EST Monday (00:00 UTC Tuesday)
Withdrawal Request
By 7pm EST Monday (00:00 UTC Tuesday)
Withdrawal Processed
1 week + approx 48hrs to finalize NAV after cutoff for the week, 00:00 UTC Tuesday. (7pm EST Monday)
Initial Calendar
Initial Deposit Request
Opens Tuesday Jan 28th, 9am EST
Begins accepting deposits
Deposit Processed
Monday Feb 3rd, 7pm EST (00:00 UTC Tuesday)
Cutoff by which time you need to deposit
First Withdrawal Request
Monday Feb 10th, 7pm EST (00:00 UTC Tuesday)
Cutoff to request withdrawal
First Withdrawal Processed
Monday Feb 17th, 7pm EST (00:00 UTC Tuesday) + approximately 48 hours to strike NAV
When withdrawals will be processed and claimable. You'll have to manually claim on platform
Disclaimer: Dates listed above may be subject to change with or without notice. Supported assets, wallets, and/or protocols may be updated in line with Changing A Vault's Investment Policy rules. *Target rate for the vault is illustrative and the reported rate will depend on actual performance. Eligible users only, please see Terms and Conditions for more information.
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