Learn about the non-custodial DeFi fund Apophis DeFi in one article

Build Finance has partnered with Enzyme and Uncuts to launch a non-custodial DeFi fund.

Learn about the non-custodial DeFi fund Apophis DeFi in one article

Article Highlights.
Build Finance is pleased to announce the launch of a new product: Apophis DeFi, an Enzeyme Finance

a non-custodial managed portfolio built on Enzeyme Finance with exclusive access to Unslashed Finance’s insurance.

The portfolio is designed and managed by members of the BUILD DAO community.

20% of the profits will be used to build the DAO and the other 10% will be used to repurchase $BUILD.

Apophis DeFi is backed by the following.
Nansen- On-chain data analytics platform.

Marc Zeller – Head of Aave Integration.

Loi Luu – Co-founder and CEO of Kyber Network.

vfat – vfat tools.

There are other people who wish to remain anonymous.

1
What is Apophis DeFi

Learn about the non-custodial DeFi fund Apophis DeFi in one article

Enzyme on Apophis DeFi user interface The Lord of Chaos. Apophis is the original ancient Egyptian god of chaos. Apophis is the embodiment of the unpredictable dark matter of the universe.

Life and nature are also chaotic and changeable. In the human world, the greatest manifestation of life is the marketplace, and the greatest manifestation of the marketplace is DeFi, which is invisible, unpredictable, and always in flux.DeFi’s borderless open source architecture fosters explosive and continuous innovation, and DeFi is the ultimate expression of the free market.

Every era has an exciting story to tell. And this era is the era of the Great Economic Reset (GER).

DeFi is truly the Great Economic Reset, where value is created by spontaneous order and network effects, and control over DeFi is dispersed between cooperative and self-organizing participants and decentralized autonomous organizations (DAOs).

The story of this era is the decentralization of money and the rise of the financial internet.

DeFi is not a substitute, it is a completely new way of operating finance. It is like the Internet that will completely replace the old system and place itself within it. DeFi is evolving from within and will be mature by the time the traditional world enters the space one by one. By historical standards, DeFi adoption will happen quickly, so it has a relatively short window.

Of course DeFi also has special systemic risks and unique market dynamics. It trades around the clock, 365 days a year, with new projects and updates released daily. DeFi is in a perpetual state of conflict: there are protocol and liquidity wars, hostile takeovers, forks, vampire attacks, sandwich attacks, flashpoint lending attacks, prophecy machine price manipulation, hacking and exploitation, in fact Ether is a dark forest. Outsourcing portfolio management to protocols that work 24 hours a day can help mitigate these risks.

2
What is the main product of Apophis DeFi?
Apophis DeFi aims to leverage DeFi to commercialize our in-house investment management skills.

Apophis DeFi provides exposure to the DeFi ecosystem by leveraging capital appreciation and revenue generation strategies. It is a bet on the DeFi protocol to shape the world of the future.

Apophis DeFi is a discretionary managed portfolio where all decisions are made by the portfolio manager. It relies on the portfolio manager’s knowledge of the DeFi space, as well as fundamental and sentiment analysis; technical analysis (TA) is only supplemented here.

Apophis DeFi provides a unique framework for portfolio construction, asset allocation and token selection. For more details, please click here.

Apophis DeFi’s decision-making capabilities are enhanced by advanced access to the on-chain data platform Nansen and other tools such as Token Terminal, Crypto Quant and Nyctale.

Broadly speaking, Apophis DeFi will divide capital allocation into two categories.

Financial protocols: money markets, derivatives and insurance platforms, automated market makers (AMM), decentralized exchanges (DEX) & DEX aggregators, fund management infrastructure, income aggregators, etc.

Middleware: prophecy machines, data indexing, interoperability bridges and wrappers, scalability, privacy and security, data analytics, etc.

Learn about the non-custodial DeFi fund Apophis DeFi in one article

Strategic Asset Allocation

3
Go-live details
The launch of Apophis DeFi will take place in several phases.

The first phase is capped at $1 million, of which $500,000 is reserved for the broader community, and approximately $500,000 has been allocated to our partners and DAO members who have indicated their willingness to support a pre-release of the portfolio in order to launch the project.

There are no Apophis tokens yet. However, we are considering “tokenization” of transaction fees, and Apophis DeFi follows best DeFi practices for token design and community engagement that will incentivize early contributors. Please note that this may or may not happen.

Learn about the non-custodial DeFi fund Apophis DeFi in one article

Apophis DeFi’s launch phase, dates and specifications are subject to change

The reasons for phased capital access are as follows.

Enzeyme integration. In April and May, Enzeyme will be joined by a number of agreements that will significantly enrich the options for revenue generation.

It alleviates the pressure to establish an in-chain track record and allows for the finalization of partnerships as well as capital dialogue; it also

allows for the rebalancing of a large number of portfolio funds, thus reducing gas costs for fund managers. When funds from liquidity providers are deposited into Enzeyme, the fund portfolios do not change until the manager rebalances their allocations. Therefore, balancing a small amount of funds is impractical.

4
Why Apophis DeFi is running on Enzeyme
Fund management is a multi-trillion dollar industry, and Enzeyme Finance (MLN) dwarfs those traditional fund infrastructures.

Enzyme (formerly known as Melon Protocol) is a decentralized and non-custodial fund management platform. We can think of it as an eBay version of a fund. It is not permitted or trusted, and anyone can shop and put money into a fund that suits their interest and risk appetite. enzyme is to funds what YouTube is to video media.

While Enzyme started out for these “non-natives,” their goal is to allow investment banks and asset managers to offer products to institutional investors, family money rooms, insurance and pension funds, and other sophisticated investors who want to participate in this shiny new asset class.

The day is not far off when we will see JPMorgan Chase create an Enzeyme fund with Bill Gates’ family office, Cascade. Until then, we have the opportunity to make our mark and carve out our own place in the sun.

Some of the benefits of running an Enzyme portfolio.

Simple interface – UX’s Enzyme V2 is a true work of art.

DeFi Lego – Portfolio managers can not only go long cryptocurrency assets by seeking liquidity through Paraswap, Uniswap, 0x and Kyber, but also invest in traditional assets such as Tesla, XAU or short the market thanks to Enzyme’s integration with Syntix. Enzyme’s integration with Aave and Compound integration allows participation in cryptocurrency markets; Staking with Lido and Stakehound using ETH. integration with Balancer, Curve and desire will lead to more income options. And this is just the tip of the iceberg.

ChainLink – Only assets integrated with ChainLink prophecy machines (and assets derived from them, such as ctoken) are listed on the platform. This mitigates the risk of specific assets to a certain extent.

100% on-chain – Ether is a public chain, so all transactions, purchases and sales, and registration of access on Enzeyme are transparent and traceable. Users have the peace of mind that they can check the manager’s actions in real time.

24 / 7 NAV reporting – Track the performance of your portfolio at any time.

Deposits – Any time a deposit is made with DAI or ETH (as long as Apophis is at the current stage).

No lock-in period – depositors are usually free to move in and out at any time. There are a few exceptions: First, synth has an 8-minute settlement time, so withdrawing immediately after a synth transaction may not be possible. Secondly, once borrowing is introduced into Enzeyme, this will change the withdrawal process as the CDP is indivisible. These instances will be communicated in advance via the main user interface and Twitter.

Withdrawals – It is possible to withdraw from the portfolio at almost any time (depending on the above). This is currently done through investment class distribution (i.e. on exit, the liquidity provider receives the underlying assets in proportion to the portfolio’s allocation), although Enzyme is looking to allow liquidity investors access to preferred asset choices.

Transferable Shares – Soon Enzeyme will make portfolio shares available for transfer, which means we will create decentralized exchanges and markets on a second tier network.

Capital Efficiency – Our upcoming integration with Rari Capital’s Fuse will allow depositors to use their own LP tokens as collateral for lending. In the long run, Rari’s Tank will allow access to portfolios without selling collateral.

5
Why Unslashed Finance
An important part of making money is not losing money. It’s a portfolio manager’s job to look for opportunities and limit the risk of a particular asset. But there are some things we can’t control, like platform risk. Apophis DeFi has no custodial risk, and neither the portfolio manager nor Enzyme has access to these funds because they are locked into smart contracts. However, the risk shifts to the technology.

We are pleased to partner with Unslashed Finance (USF), which will provide Apophis’ limited partners with exclusive access to the Enzeyme platform’s smart contract overlay, which is not yet publicly available. Savers with access to Apophis DeFi can apply for coverage and receive customized transactions from Unslashd.

Unslash is the next generation of DeFi insurance protocols. They provide flexible and adjustable protection against a variety of risks, from exchange and smart contract hacks, to anchored stablecoin issues and prophecy machine failures. Users are paid only for their insured time, which has no minimum term and can be cancelled at any time. If you are considering insuring your deposit, please contact us.

6
What are the advantages of DAO?
This is very different from what BUILD DAO has built before, but we hope that this is just the beginning of a new suite of products that will benefit the larger community.

In addition to market exposure, marketing, community outreach, partnerships and awareness, Build Finance will have a direct impact on revenue: the

20% of the performance fee will go to the Treasury, controlled by holders of $BUILD tokens.

10% of the performance fee will be used to purchase $BUILD tokens from the market and distribute them to the liquidity providers (savers) of the portfolio. In this way, we can both add value to token holders and expand the community by converting liquidity providers into BUILD community members, who in turn are exposed to the benefits of being $BUILD holders. It’s a win-win all around!

In addition, as the portfolio grows, we will seek further incentives for depositors and BUILD DAOs, which will come in part from portfolio manager reductions in.

First, community support is needed for research, risk assessment and report writing activities.

Second, BUILD DAO has begun brainstorming other potential products of a similar nature that will further leverage our community.

Just as all life forms come from the chaos of time and matter, Apophis DeFi will be the cradle and template for new products already conceived by our community

We won’t share too many details here, so please join us in the discussion!

7
Fee Structure
Traditional funds typically charge a fee of 2/20. Apophis DeFi has a different approach, it charges a nominal fee of 0.5/22.

0.5% management fee. The portfolio does not have significant management fees and operating costs, which are mainly gas and marketing. Currently, the gas fees are paid jointly by the portfolio manager and BUILD DAO. At a later stage, a portion of the gas fee will be paid to the portfolio’s liquidity provider.

A token 22% performance fee. The actual fee is 19.8%, of which 2.2% is returned to the liquidity provider via $BUILD repo.

Learn about the non-custodial DeFi fund Apophis DeFi in one article

Apophis DeFI’s fee structure

  • The apportionment of the management fee between the DAO and the portfolio manager is not fixed and may vary depending on the fee. the allocation mechanism for the financial reduction of the BUILD DAO and the BUILD repurchase will be confirmed.

Other important matters to note.

The currency and benchmark is DAI (actually USD). However, ETH is the currency, so the portfolio will seek to accumulate reserve assets (ETH and BTC) and attempt to outperform the DeFi Index.

The performance fee has a crystallization period of 14 days.

The High Water Mark (HWM) is deployed. It is used as the cut-off point for determining the performance fee payment. The purpose of this is to protect liquidity providers from paying fees for underperformance and from repeatedly paying fees for each time a fund makes a profit. A new High Water Mark is established for each crystallization, and depositors pay a fee that covers only the amount between the High Water Mark and the highest level of the portfolio.

Balancing. As a nice bonus for savers, if they enter when the portfolio is below the high-water mark, they get a free profit. Enzyme has not yet implemented the mechanism used by traditional open-ended investment vehicles to ensure that the allocation of fees in the portfolio is the same for all shareholders, regardless of when they enter.

The minimum return, which is the required minimum rate of return, is not currently available. Enzeyme does not currently allow for its generation.

More details on how the Enzeyme fee collection and calculation works are here.

8
Project Portfolio Management and Control
Son of Ishtar-Portfolio Manager, who entered the cryptocurrency space in 2017 and was an investment product manager for a digital asset fund.

Vfat-Portfolio advisor. senior user of DeFi, creator of vfat.tools.

0xSHA2 – Technical Advisor. Led the development of Metric Exchange, 0x DAO bootstrap commission.

Vfat and 0xSHA2 represent the interests of building DAO. They will advise on investment opportunities and risks and provide an overall check on the portfolio manager’s decisions. The address of the portfolio vault controls the commissioning of transactions, charging fees and changing miscellaneous settings, and the Gnosis multi-signature vault will house two-thirds of the private keys.

Learn about the non-custodial DeFi fund Apophis DeFi in one article

Apophis DeFi Portfolio Management and Control

Please join the BUILD DAO community and follow us.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/learn-about-the-non-custodial-defi-fund-apophis-defi-in-one-article/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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