Risk Defined & Protected Yield Aggregator
Fixed or Perpetual Instrument
Perhaps the simplest instantiation, an Instrument can represent any yield-generating strategy in DeFi, where the instrument contract can be as simple as supplying to the relevant DeFi protocol.
Passive LPs would by default be exposed to a senior tranche to a wide set of complex strategies assessed by the managers in a single click. They would however are also able to granularly customize their risk profiles for each individual instrument.
RAMM could be a one-stop area for all complex yield sources out on the risk curve, powered by a decentralized risk assessment and insurance tech.
LPs would be able to gain
set and forget yield for a number of complex strategies
higher yields
insurance
strategies assessed by key Defi opinion leaders whose incentives are forcibly aligned with LPs via code
with a single click, and
the ability to customize risk exposures for each instrument if desired
Simple Example
A RAMM USDC vault invests in the following strategies, approved by the managers.
Strategy 1, yielding 10% APR
Strategy 2, yielding 13% APR
Strategy 3, yielding 8% APR
For managers who participate in each instrument, their longZCB
APR is as follows(rough number, specific would depend on individual vault parameters)
Strategy 1, junior tranche yielding 20 % APR
Strategy 2, junior tranche yielding 21% APR
Strategy 3, junior tranche yielding 13% APR
Note that a manager need not buy into every instrument longZCB.
For LPs who invest in this RAMM USDC vault, their APR is as follows
Strategy 1, senior tranche yielding 7% APR
Strategy 2, senior tranche yielding 8% APR
Strategy 3, senior tranche yielding 5 % APR
Yielding an average of 6.66% for the vault. However, an LP could also customize his instrument exposures. For an LP who is especially bullish on strategy 1 but bearish on strategy 3, he can create a custom vault as the following
Strategy 1, senior tranche yielding 20 % APR
Strategy 2, senior tranche yielding 8% APR
Strategy 3, senior tranche yielding 0% APR
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