TLDR:
- Launched PolyGains, introducing Polygon to the Brahma stack built on top of Lido and Curve to boost stMATIC yield (link).
- More vaults, on more chains, with more composability brings even more diversification.
- Leveraged FRAX yield vault on Gearbox v2 with active risk management launching in October.
- Smart sUSD dynamic option vault on Lyra in the works (watch out for the turkey!)
- Nut-bolting our security and monitoring practices for further product robustness.
- Building deeper risk mitigation products for user-facing use cases.
- Karma v2.1, community bounties, more spaces, AMA and insights in Brahma’s ongoing product developments are planned for Q4.
In spite of the ETH merge being successfully completed early last month, crypto prices failed to break-out of the range and retreated back towards previous lows. TradFi bros have pinned the annual bera to be at its peak during the dire month of September with macro larps worried about the hard-landing that the rapid pace of interest rate hikes may bring. While the market price action depicted flat charts but held ranges, Brahma capitalised on making the volatility work best for fellow degens.
Planned Vs. Achieved
September bore another DegenVault shipping milestone with the PolyGains DegenVault, Brahma's first $ MATIC-based vault on the Polygon chain.
The vault is based on a principle protected model with a similar structure to PMUSDC but with a higher yield thanks to Lido's stMATIC, with atomic deposits and withdrawals enabled by removing the dependency on batcher contracts, thanks to Polygon’s low fees. Another thing PolyGains introduced is compatibility with the ERC-4626 Tokenized Vault Standard, which increases the vault’s composability.
Monthly Vault Performance:
1. Total yield earned this month: 3,991.4 USDC
2. Average APY for the month was: 4.43%
3. Projected APY for Oct 2022 is: 4.19%
4. Signal accuracy for trades taken was: 75%
5. TVL filled: 1.6 of 1.7 mio USDC (94% filled)
1. Total yield earned this month: 1.818 ETH
2. Average APY for the month was: 30.8% (driven by the stETH peg recovery)
3. Projected APY for Oct 2022 is: 6.35%
4. Signal accuracy for trades taken was: 75%
5. TVL filled: 261.8 of 333.33 ETH (77% filled)
The Polygains DegenVault yielding up to 22.8% APY with a 1.5x boost on stMatic took its first 8x long leverage position on Perpetual Protocol this previous trade epoch between 30/9-07/10.
TVL Filled: 111.2K of 600K $MATIC (18% filled)
Plans ahead, October 2022
New DegenVaults
A new DegenVault is being assembled and market-readied as we speak. A leveraged yield strategy to maximise returns on FRAX, built on Gearbox v2 is in the works. This is set to be Brahma's first risk-on strategy, and will have off-chain intelligence for managing the leveraged borrow position, with its liquidation levels, borrow rates as well as monitoring exit liquidity block-by-block.
Another DegenVault, this time fully Optimism native is in the works. It will run on top of Lyra, trading weekly options with dynamic positions aided by custom-built off-chain intelligence. This vault will be targeting high returns and superior capital management as compared to single direction DOVs currently in the market.
Risk Framework
The risk monitoring framework established in August 2022 by our quant chads (more here and here) underwent further optimizations and fixes. While having multiple discussions with liquid funds and DAOs, the team stumbled upon a stark realisation. Risk Monitoring systems aren't as common as we thought with multiple protocols lacking the basic infrastructure to track and simulate on-chain open position health and risks. Brahma is further reinforcing its off-chain risk monitoring systems, and exploring expanding its capabilities even further. While yield is a key part of vault products, keeping vault position healthy and having prompt vault operations in risk events is paramount and we see this as a key differentiator.
Le devs are hard at work on developing a user-facing live risk dashboard for the vaults, featuring live pool monitoring for base pools (Curve) alongside a peg stability monitor.The future of Brahma isn’t only vault-like and denominated in apy, anon.
Community
At the time of writing this post, degens within the community hab gmed each other 16K+ times. Rise and shine, we come bearing good news! 👀
Lastly, a karma bounty frame is WIP with abundant contribution tasks and opportunities to be part of the extended contributing team and preach the way of Brahma. Watch out for more community game nights, updatooors and leaderboard levelling quests real soon.
While a Q4 community call awaits, (join the community to receive the latest updates) we'll dive deeper into our plots and backtestooors to give your crypto bags a sustainable boost, till then we need your help.
We're working on further tight-lining our processes, products and user touchpoints. Community degens, assemble at once. Help us help you better!
Drop in your feedback here on Brahma's upcoming Karma Bounties: https://airtable.com/shrwmgT8ETB18pIVg
For more updates: Twitter | Discord
Disclaimer: The content of this post is provided for informational purposes only.
This article is not an offer of securities, an invitation to sell or a recommendation to subscribe for or purchase any securities, and it has been prepared without any consideration of particular investment objectives. Nothing herein constitutes investment advice or recommendation.