WAY Fund
AvaltAsset ADA Yield (WAY) Fund
The WAY fund is designed to target yields in excess (relative to ADA)
AvaltAsset ADA Yield Fund (“WAY”) is a DeFi liquidity fund designed to support the new decentralized exchanges, lending protocols, and stablecoin issuers building on Cardano*. Each of these decentralized applications adds to the strong foundation of the ADA blockchain as it realizes a fully functional and diverse ecosystem.
Potential Future of Cardano DeFi
Source of Yield- Liquidity Mining
Decentralized Exchanges (DEX) are set up without market makers, and instead with two pools of assets that represent each side of a trading pair. This creates a liquid pool of assets to trade against. DEXs rely on Automated market makers (AMMs) to facilitate the transactions between assets within a smart contract pool.
Source of Yield- DeFi Lending
Decentralized lending protocols are fully transparent, permissionless applications built on the blockchain using smart contracts.
Risk Factors
Market Risk
MARKET RISK
Blockchain-native assets make up the vast majority of collateral across decentralized finance. Therefore every actor is exposed to movements in the market prices of those assets.
Additionally, since yield is paid out in wrapped or native tokens, the value of your yield may decrease if the underlying token prices drop.
IMPERMANENT LOSS
Occurs when one side of the pair decreases in value compared to the other side, leaving the liquidity provider holding more of the lower-value asset and thereby losing out on gains in the higher-value asset.
This imbalance can correct if the assets in the pool revert to their previous price parity, which is why it’s known as Impermanent loss. The higher the volatility of an asset, the higher the potential impermanent loss risk. This is one reason that the fund will only deploy with stablecoin as they’re a lower volatility asset.
LIQUIDATION
Risk of failure of an asset that is being used as collateral on the protocol; risk of liquidators not capturing liquidation opportunities in a timely manner, or low market liquidity of the principal asset to be repaid.
Systems & Technology Risks
SMART CONTRACT
The daily operation of decentralized capital markets are autonomously and deterministically dictated by the codebases of each platform and the integrations between platforms.
Coding flaws can be exploited by bad actors at will, with little to no recourse available to victims.
DESIGN & INCENTIVE
The underlying digital ledger technology, and added features such as scaling technologies, rely on complex game-theoretic incentive designs. Flaws in the incentive design can skew operational outcomes.
LIQUIDATION
Risk of the Oracle system not properly updating prices in case of extreme market downturn and network congestion; risk of the Oracle system not properly submitting prices, causing improper liquidations.
Credit Risks
SMART CONTRACT
The daily operation of decentralized capital markets are autonomously and deterministically dictated by the codebases of each platform and the integrations between platforms.
Coding flaws can be exploited by bad actors at will, with little to no recourse available to victims.
DESIGN & INCENTIVE
The underlying digital ledger technology, and added features such as scaling technologies, rely on complex game-theoretic incentive designs. Flaws in the incentive design can skew operational outcomes.
LIQUIDATION
Risk of the Oracle system not properly updating prices in case of extreme market downturn and network congestion; risk of the Oracle system not properly submitting prices, causing improper liquidations.
Stablecoin Specific Risk
LOSS OF PEG
When trading stablecoin pairs, if one of the stablecoins in a pool goes significantly down below the peg of 1.0 and never returns to the peg, it will effectively mean that pool liquidity providers hold almost all their liquidity in that currency. Please check out our Stablecoin Research Paper for more information on these risks, Stablecoin Research
Regulatory Risks
The regulatory environment surrounding these assets continues to develop and there are risks new legislation may impact these assets.
Learn More
How to Invest in Avalt Asset
Services
Our team has deep institutional experience managing third-party capital across traditional and decentralized finance, in particular venture capital, derivative, lending, and staking expertise.
In addition, we have built strong relationships with institutional service providers leveraging our blockchain and digital assets network across the world.
Treasury Management
AvaltAsset's Corporate Treasury Management services include digital asset lending programs and derivative strategies designed to capture additional yield and fine-tune risk, with a range of qualified custodians and counter-parties. AvaltAsset also operates across multiple DeFi protocols for lending, borrowing, trading, yield farming, staking, and mining. AvaltAsset applies our deep experience in digital asset strategies to bespoke risk managed portfolios. AvaltAsset is UK COMPANY HOUSE regulated focused exclusively on digital assets, and have a fiduciary duty to protect our clients.
Wealth Management
Your ultimate solution for digital asset portfolio management, combining custody, execution, and tailored investment strategies. AvaltAsset is a leader and pioneer in digital asset investment management. We are focused exclusively on digital assets, our offering is designed to provide the ultimate all-in-one portfolio solution for corporate and individual investors, and we have taken steps to ensure that assets are UK COMPANY HOUSEure, growing, and generating income.
Protocol Inventory Management
Tokenized staking fund for your protocol. Programmable liquidity through fully-compliant global exchanges. We deal with all the administrative hurdles providing you the ease of use
Investment Funds
High Liquidity Funds
Select 5 Crypto Index Fund (WS5)
AvaltAsset Select 5 Digital Fund provides exposure to one of the best performing asset classes of the last 5 year
BTC Income & Growth Fund (WBIG)
AvaltAsset Bitcoin Income and Growth Fund- A professionally risk-managed Bitcoin fund product designed to transform BTC volatility into stable yield
Stable Asset Yield Fund (SAYF)
The newly launched Stable Asset Yield Fund (SAYF) targets a 6-10% annual yield with minimal volatility, low correlation to cryptocurrency price movements, and monthly liquidity with a focused strategy on DeFi yield generation.
AvaltAsset ADA Yield Fund (WAY)
AvaltAsset ADA Yield Fund (“WAY”) is a DeFi liquidity fund designed to support the new decentralized exchanges, lending protocols, and stablecoin issuers building on Cardano, each adding to the strong foundation of the ADA blockchain as it realizes a fully functional and diverse ecosystem.
AvaltAsset’s investment team draws on decades of asset management expertise to offer actively-managed strategies.
Low Liquidity/VC Funds
cFund
cFund is an early-stage UK COMPANY HOUSEtor agnostic venture firm in the blockchain industry anchored by IOHK and managed by AvaltAsset
NFT Fund
The NFT Fund invests in NFT collectibles, platforms, and protocols
Whiskey Fund
AvaltAsset Whiskey 2020 Digital Fund, the world’s first tokenized whiskey barrel fund that captures value appreciation associated with the aging of Kentucky whiskey, designed to be recession resistant