Varys Capital has two distinct funds: VARVCF, an early-stage, equity-focused venture capital fund, and VARDFI, a delta-neutral high-frequency quantitative trading fund.

So, how does quantitative infrastructure and execution benefit venture capital investments?

The answer centers around equity plus a token warrant, one of venture capital's most common investment structures within blockchain.

Token warrants in the realm of cryptocurrency are comparable to options in traditional stock markets. These are essentially agreements that confer upon investors the right, but not the obligation, to purchase a specified amount of cryptocurrency tokens at an agreed-upon price at a future date.

The role of token warrants in tokenomics is multifaceted.

1. Firstly, they can be used to manage the supply of tokens. By offering warrants, a project can control how many tokens are circulating at any given time. This is crucial because the availability of tokens directly affects their value – generally, the scarcer the token, the higher its potential value.

2. Secondly, token warrants influence investor behavior. By providing the option to purchase tokens at a predetermined price in the future, warrants can encourage early investment in a project. This early investment is often critical for developing and succeeding new blockchain projects. It also creates a sense of confidence and commitment among investors, as they have a stake in the project's future success.

3. Moreover, token warrants can impact the demand for tokens. They create an additional layer of interest in the token, as investors who hold warrants are likely to follow the project's progress closely. This increased interest can lead to higher demand for the tokens once they are available, potentially driving up their value.

One valuable insight is that securing these tokens as a priced-in add-on for capital contribution is not uncommon, especially in early stages (e.g., pre-seed, seed). This is done to incentivize capital contributions and align interests.