DeFi Fund
While revenue will be emphasized, capital preservation will always be the team’s top priority. Therefore, the Treasury will be diversified into several positions to ensure compartmentalization and resistance to market contagions. All allocations in the Treasury will be focused either on safe yet strong yield generation or an asset's short-to-mid-term projected price appreciation.
The driving ethos for BlockCentral's investment strategy is to adopt a DeFi Fund that brings added value to our users and gives them access to opportunities they otherwise would not have. Therefore, the taxes associated with the protocol that will be discussed later are the fund's 'performance fees.' This model relies on four core tenets:
Our team has extensive experience within the crypto space and will actively manage the treasury portfolio. Crypto markets never stop, and our team will continuously monitor and adjust the underlying portfolio to ensure maximized returns while minimizing risk exposure.
The treasury investment strategy's primary focus is balancing capital preservation and yield generation. Sustained growth from yield-bearing investments will ensure long-term capital returns that feed back to the shareholder via token buy pressure.
Financial economies of scale more easily allow the protocol to utilize compounding yield-bearing instruments that an outside individual investor would otherwise not have access to due to capital requirements and recurring gas fees that negate significant portions of their return.
The capital allocation of the treasury allows the protocol to participate in venture capital opportunities as they arise and are evaluated by the team. Due to timing or capital requirements, such opportunities may not be available to individual users.
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