Aspis Protocol is revolutionizing the DeFi space by introducing Aspis Vaults, fully autonomous and decentralized on-chain funds powered through only smart contracts, without the need for a middleman. These Vaults aim to solve the problem of trust between investors and capital managers by allowing the deployment of non-custodial on-chain Vaults that store the commonwealth and serve as a point of interaction between the shareholders.
Aspis Vaults are changing the way investors and asset managers interact in DeFi. Unlike traditional financial institutions, these Vaults provide transparency, security, and accessibility. So, let's dive deeper into what Aspis Vaults are and how they work.
Aspis Vaults are non-custodial on-chain Vaults that allow investors to pool their funds together and invest them in different DeFi protocols. Aspis Vaults eliminate the need for a middleman, which helps reduce costs and increase transparency. These Vaults are autonomous and decentralized, meaning there is no central authority controlling them.
The problem that Aspis Vaults aim to solve is the issue of trust between investors and capital managers. In traditional finance, investors entrust their money to a fund manager, and it's up to the manager to make the right investment decisions. However, the manager can misuse or mismanage the funds, which leads to losses for the investors. Aspis Vaults solve this problem by removing the middleman and allowing investors to invest directly in a Vault, which stores their funds securely on the blockchain.
Aspis Vaults work by allowing investors to pool their funds together and invest them in different DeFi protocols through the Vault. Investors can deposit their funds into the Vault, which then deploys them to various protocols and generates returns. The profits earned are then distributed proportionally among the investors based on their investment.
Aspis Vaults serve as an interface for interaction between managers and investors. Here is a step-by-step guide on how the Vault is created:
The manager deploys the Vault, where they specify the initial rules of the fund, such as the list of assets they are able to trade and the platforms they will be able to trade on.
Investors deposit their funds into the Vault and receive LP tokens, which represent their share in the fund.
The manager can manage the capital directly from the Vault via WalletConnect. Each transaction that the manager triggers from the Vault balance is checked to see if it is according to the contract.
Investors can burn their LP tokens to get back their funds and any earnings that have accrued due to the manager's results. At this step, the manager receives their commission.
If the manager wants to change the rules of the fund, he is able to create the voting proposal that needs to be approved or rejected by the holders of LP tokens. We will cover the voting in our next blog posts and explain how it works, but basically, every parameter available on the Vault Rules page (the page below) can be changed with the corresponding voting proposal, including assets and protocols (incl. DEXes) manager is able to use:
Oh, another good use is that you do not rely on some backend here on the interface since all the data is synched directly from the chain, allowing to present to you up-to-date information about all current parameters of the fun, its history of transactions, deposits, and withdrawals.
Each Vault has its own smart-contract address, stores its parameters as variables in this smart-contract, and funds separately without an aggregation. The manager also does not have direct access to the funds, so he is not able to withdraw the funds from the Vault without the investors’ permission.
Aspis team does not have access to any funds stored in the Vault. This means that investors can trust that their funds are safe and secure, and they don't have to worry about the Aspis team mismanaging their funds.
Moreover, the manager does not have direct access to the funds, and the Vault serves as a gatekeeper by not allowing managers to scam investors without their permission. Aspis Vault handles all the accounting and serves as the source of truth for everybody, eliminating trust issues between the manager and investors.
Aspis Vaults are always accessible, thanks to the underlying blockchain technology. As they are running on blockchain, there is no downtime, which is a common problem faced by traditional investment funds.
Lastly, Aspis Vault handles all the accounting and serves as the source of truth for everybody, eliminating trust issues between the manager and investors. The smart contract is the only law avoiding the hypocrisy of the current legal system in DeFi. Smart contracts are not subjective, and they execute automatically based on predefined conditions, ensuring that all parties are treated equally and fairly.
There are the number of different Vaults types with different parameters depending on the “mission” of the Vault:
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;
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
Aspis Vaults are transforming the DeFi space by providing a transparent, secure, easy-to-use, and accessible way for investors and asset managers to interact. These Vaults eliminate the need for a middleman and provide trust and security to investors by using non-custodial on-chain Vaults.
In conclusion, Aspis Vaults offer a unique solution to the challenges faced by investors and asset managers in the DeFi space. With Aspis Vaults, investors can feel secure that their funds are held in a non-custodial manner, and managers can operate with greater ease and efficiency.