When we first start this project, the truth is, there weren’t many asset management projects on the market. Neverthless, with the growth of Defi, we have seen the boom of this sub-industry. As a result, the team has to answer the question before anyone else does:
Even in the early stage, four products will be provided and more functions are on the way:
a. Index-tracking SAP (Synthetic Asset Pool)
The manager will, in advance, select an index to follow. Then the protocol would execute the transaction and adjust the proportion automatically. By hedging the non-systematic risk through various types of tokens, users with low risk preference could earn yield from this growing cryptocurrency market.
b. Trader-based SAP
Tokens would be confined in the smart contract. The manager has the access to trade these tokens in the DEX, according to the manager’s research of valuation. And at the end of each period, a clearing process will begin.
c. Structured Yield Fund
Some pools will employ a structured yield mode, which enables users to select different risk level from R1 to R3 (and mint different fund share token SAP-R1，SAP-R2，SAP-R3). Let the risk deserve the yield.
For those users who mint SAP-R1 and SAP-R2 as well as providing liquidity in the secondary market, the protocol will provide them with more staking rewards.
d. Assets-backed quantitative trading SAP
The manager needs to over-stake governance token SYP to build the pool. Before launching, a proposal of max amount raised and price per share is required.
The SYP staked would be locked in the smart contract for a certain time. If the manager defaults, these tokens will be confiscated to compensate clients. If not, tokens will be unlocked and returned after a certain time. At that time, certain rewards would be given to the manager according to the performance.
This type of share token SAP couldn’t be burned and redeemed once minted but could be traded in the secondary markets.
Tokens will be trading quantitatively in a CEX. The total value and total share are also live.
In the future, there will be more functions:
e. New pools will be available for qualified managers to apply.
f. Perpetual No-loss Lottery!
g. NFT elements will be added.
h. It will be allowable for users to stake their SAP as collateral to launch a loan.
Our team consists of two groups: financial group and technical group.
Our members had worked in well-known hedge funds and delivered some very great performances in quantitative trading. Over the years, we have collected various trading strategies from traditional markets and accustomed those strategies to crypto market. And the strategies have proved themselves in the past few years.
As for our technical members, we have designed several projects providing social network and startup tools aggregator. And our teammates have worked on a neuromorphic chip program with Chinese Academy of Science.
🌱Unique farming mechanism
In short, it’s a diminishing mechanism.
In the first few years, the releasing speed is accelerated, but slows down continuously as time flows.
After that, the speed will fluctuate considering the staking volume and the circulating supply.
Each pool will be audited strictly to prevent managers from misconduct. If a manager operates improperly, he will receive a warning. Once more, he will be moved out of the whitelist and his pool will be closed.
We have set up an insurance treasury to protect investors from managers’ misconduct and hacker attack.
More over, we have a risk assessment mechanism. For each pool running for more than one period, we will give an assessment. The main index is based on down volatility & sortino ratio, and we will also rank each pool and give high risk alerts.
Rp: average value, Rf: risk-free interest rate, DR: downward standard deviation
🔊“Stay hungry, stay foolish.”
Since this is only the beginning, we will continue looking for new answers. What we have done is far from what we want to do, but we are on the road. Let’s do this together.
🎉Welcome to Sypool!