The Vault's Concept
What does Vault mean and why it has been created
The problem of huge players suddenly going bankrupt could not exist if there would be direct transparency and control over the company and its financial decisions. 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 company's funds are stored on-chain on a special smart contract that manages all the relationships between participants and controls ingoing 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.
Aspis has a launchpad for Vaults created on Aspis Protocol where investors can browse through Vaults, review their term sheets, deposit funds to receive their LP tokens, and burn these LP tokens to get their funds back. All Vaults have different trading strategies and managers with a transparent portfolio and 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 out beating 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;