Yield App is today announcing a partnership with Trovio Group, Asia Pacific’s leading hybrid asset manager and technology solutions architect, for the launch of the Trovio DeFi Fund.
The Trovio DeFi Fund offers wholesale investors the opportunity to allocate capital into a yield-generating strategy within the DeFi ecosystem. The investment vehicle is managed by Trovio’s asset management team in partnership with Yield App’s highly experienced DeFi risk management team.
The new investment vehicle has a strong focus on capital preservation, using proprietary sentiment capture and analysis tools, utilized by Yield App in its existing DeFi strategies, with the aim to protect the portfolio from market volatility. The fund is being launched with $35 million in capital.
Yield App’s DeFi risk model
Yield App’s DeFi team brings its existing expertise in risk management, along with our proprietary risk model, which has allowed us to weather the turbulent market conditions of the last few months.
The internal risk model focuses on five security assessment pillars (smart contract, platform, counterparty, financial and credit risk), using a sum of 135 measured variables compiled from historical data to analyze all aspects of risk exposure. This allows the fund to generate a universe of DeFi investment opportunities which then undergo rigorous risk analysis.
In addition, our DeFi team uses an automated tool to capture and analyze social media and news sentiment to stay ahead of the curve. Compiling this carefully curated information has improved operational agility by predicting market saturation metrics, compensation decay, governance proposals, and more, well in advance.
To learn more about the rigorous due diligence process we employ across all our investment strategies at Yield App, head here.
Lucas Kiely, CIO at Yield App, says: “Through this partnership with Trovio, we are making the internally tried and tested DeFi strategy that has powered Yield App’s return-generating engine available to a wider audience of wholesale investors.”
He continues: “The expertise of Yield App in the DeFi space combined with Trovio’s long and successful track record within the digital asset industry, makes this the best-placed team in the market to take advantage of the opportunities available in DeFi, while maintaining a strict focus on capital preservation throughout.”
Jon Deane, CEO of Trovio Group, says: “Trovio has spent the last five years building a market-leading asset management solution for digital native assets. Today we are excited to announce the launch of the Trovio DeFi Fund in partnership with Yield App, an institution that we have worked closely with during this period.
“Yield App brings a wealth of experience in managing risks in decentralized finance, and we look forward to continuing to grow this partnership, providing recognizable institutional investment products aligned with best-in-class risk management and governance processes, to our investors.”
Tim Frost, CEO of Yield App, says: “We are proud to bring the cutting-edge expertise of our world-class DeFi risk management team and our industry-leading proprietary risk model to Trovio, a leading asset manager in the digital asset space. This exciting partnership presents an unprecedented opportunity to explore the synergies between our two businesses and we look forward to collaborating with Trovio on this offering.”