Sypool Investment DAO
Dear community, after some brainstorming on the project design, we are planning to code the function of “Investment DAO”.
Unlike some fund companies, an investment DAO is a decentralized community-driven fund. Managers can set up a vault and investors deposit their tokens to get a share and have voting power on investment decisions.
Centralized VS Decentralized VS Decentralized community-driven
A centralized fund company raises funds from investors and a manager executes the investment decision with his own research. But the manager will only disclose his positions at a certain time monthly or quarterly without disclosing all the trading details during each period. So there might be information asymmetry between managers and investors. Worse still, some managers might not comply with their duties and misconduct.
A decentralized asset management protocol can avoid misconduct by packaging all the tradings on the chain to make them transparent and traceable. In this case, the inflow or outflow of the funds is fully viewable. But the fund is still operated completely under the manager’s own code of ethics and standard of conduct which might disobey the investing principles of some investors.
So we have decentralized community-driven investment DAO. A DAO is a decentralized autonomous organization with power distributed across stakeholders who collectively cast votes. When it comes to investment DAO, fund shares are tokenized and shareholders are eligible to vote for the investment decision. The execution of one investment will mainly have four steps: First, the manager selects some undervalued assets through his own research. Second, the manager raises a proposal for the investment. Third, shareholders vote to decide on the investment assets. Forth, the manager executes the investment via multi-sig.
In general, a decentralized community-driven investment DAO not only meets the requirements for decentralization and transparency but also offers a sense of participation to investors in asset management.
What is a Sypool investment DAO？
Sypool is planning to build a platform for investment groups to manage their treasury via DAO. The manager will be able to set up the DAO and create the vault by depositing his $SYP as collateral. These $SYP will be deposited into staking pools to serve as the fixed income of the manager.
Different from some traditional funds, the vault is able to invest in any kind of cryptocurrency asset, including but not limited to tokens in the primary market and secondary market, NFTs, indices, in-game assets, etc. Thereby greatly expanding the range of asset selection and enriching the investment portfolio.
We aim to provide investment groups with asset management services via DAO and provide opportunities for individuals to participate in the investment decision-making mechanism.
All details are being discussed and finalized by the team. Stay tuned for more updates!
About Sypool
Sypool is a synthetic asset management protocol built by the professional quantitative trading team.
This is another innovation that we have migrated finance from off-chain to on-chain. This idea was inspired by both off-chain fund companies and packaged asset derivatives. On the one hand, we tokenize fund shares. On the other hand, this share token actually represents a small part of a multi-token pool, thus providing scarce liquidity for the cryptocurrency market.
Therefore, you can consider it as a fund share, or you can consider it as a mirrored token pool asset, or your own portfolio, as well as other new uses that may appear in the future.
