Goal
The goal of this forum post is to discuss the upcoming Cellar proposal asking Governance to accept the DeFi Stars strategy. The proposal will go to vote on Monday, May 1, 2023.
Context
AlgoLab is a DeFi strategy development team that specializes in providing state-of-the-art cryptocurrency automatized strategies. Their strategies are designed to be highly responsive to market conditions, transparent, and decentralized in their implementation. The team consists of dedicated data scientists and blockchain enthusiasts who leverage their diverse skill sets and extensive industry knowledge to identify trends, uncover opportunities, and manage risks in the rapidly evolving crypto market. AlgoLab’s passion lies in utilizing advanced analytics, artificial intelligence, and machine learning to provide cutting-edge solutions for their clients.
See our website for more information.
The Sommelier architecture enables a wide variety of dynamic strategies, including portfolio management and yield strategies. We are proposing to launch a dynamic index of DeFi tokens called DeFi Stars. The strategy will initially take exposure to the following blue-chip assets:
- COMP
- CRV
- LDO
- MKR
- AAVE
We believe this strategy will provide the most flexible and efficient way to take exposure to DeFi growth. Existing offerings such as Index Coop’s DeFi Pulse Index provide similar exposure, but rebalance very infrequently and are therefore unable to respond to changing market conditions. DeFi Stars will utilize the Sommelier architecture to provide an index with more appealing characteristics.
See this presentation for more details on the historical development of the strategy, including backtesting performance in chapter V:
https://ipfs.io/ipfs/QmRqPinFBF7ydNR1BLFjgRtwicuXtquYvxVR9qXMinBfcC?filename=Defi_Stars.pdf
Proposal for cellar authorization for strategy DeFi Stars
If approved, the chain will accept signed function calls submitted to the cellar contract from the strategy provider.
Name: DeFi Stars
Cellar share token: STARS
Platform fee: 2% (1.5% for strategy provider + 0.5% for protocol)
Performance fee: 20% (15% for strategy provider, 5% for protocol)
Strategy providers: AlgoLab
The strategy for the cellar is provided by AlgoLab, including strategy development and signal generation. Seven Seas has developed tooling and infrastructure as per Governance proposal SIPS-012 and will manage the proposed Cellar.