The Vault's Concept
What does Vault mean and why it has been created
The problem of companies and funds suddenly going bankrupt could not exist if transparency and direct control over the company and its financial decisions were implemented. This can be done with Aspis, bringing direct control and ownership over the entity's capital to its liquidity providers. The registry of shareholders is stored on-chain and gives voting power over the company's financial decisions because all the company's funds are stored on-chain on a special smart contract that manages all the relationships between participants and controls incoming and outgoing transactions with the company's funds. We called this concept a Decentralized Asset Management Vault.
Every Vault has its own token representing ownership of a part of the treasury funds. It gives voting power to change parameters of the Vault that can only be obtained through the depositing liquidity into the Vault, similar to Uniswap’s LP tokens.
On Aspis Protocol, investors can browse through Vaults, review their term sheets, deposit funds to receive their LP tokens and burn them to get their funds back. All Vaults have different trading strategies and managers with a transparent portfolio, proven track record from results, and real APY calculated on-chain.
Killer features of Vaults built on Aspis protocol:
Transparency: treasury, shareholders registry, transaction history, and voting history stored on-chain
Safety: all investors receive LP tokens on their deposit representing ownership of part of the Vault capital and corresponding voting power
Clear rules for both managers and investors managed on-chain without the need of 3rd party
Investors protection: manager is not having direct access to the investors' funds and can not get away with funds without the investor's approval
Voting results are irreversibly implemented by smart-contract itself
WHY it is called the Decentralized Autonomous Fund?
WELL, because it is:
Decentralized: The registry of shareholders counted with the circulation of special LP tokens minted on each deposit at the rate of the share of the brought capital to the capitalization of the DAO. Which is the sum of all assets stored in its treasury wallet.
Autonomous: All assets of these organizations are stored on-chain on a company's treasury wallet
Fund: This smart contract that stores the company's assets is called Aspis protocol (here below) of the direct interactions between participants and has its roles and rules.
Types of Vaults: There is a number of different Vaults types with different parameters:
VC/PE funds - funds that aimed for long-term investment strategies with returns on 5+ years of the horizon, which locks its shareholders' capital for a long period of time;
Trading funds - funds aimed at outbeating the market trends and gaining better than average market returns with active trading activities such as market-making, arbitrage, and high-frequency strategies;
Portfolios - funds aimed for time-to-time diversification and rare trades but need to store capital and do not need 3rd entity to manage their assets for them thanks to decentralized exchanges possibilities which can do swaps directly from and to the user's wallet without 3rd party involved;
Indexes - same as a portfolio but do not have max cap and can be infinitely minted;
Why "Decentralized Autonomous Fund"?
Decentralized: Shareholder registration is based on LP tokens, reflecting each member’s contribution to the fund’s capitalization.
Autonomous: Assets are securely stored on-chain in a treasury wallet, eliminating the need for third-party management.
Fund: The Aspis protocol governs direct interactions and enforces rules within the smart contract framework.
Types of Vaults:
VC/PE Funds: Focus on long-term investment strategies, locking in capital for extended periods.
Trading Funds: Aim to outperform market trends through active trading, including market-making and arbitrage.
Portfolios: Suitable for periodic diversification, allowing direct swaps from the user’s wallet without third parties.
Indexes: Similar to portfolios but with no maximum cap, allowing for infinite minting.
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