30 days of Transparency: Day 4
Protocol: @avantprotocol
Transparency Dashboard:
This one was requested, it may be a bit spicy.
Detailed Exposure 🧵
Avant is another vault-strategy protocol, however the slight twist is that it has senior and junior tranches and also has vaults for ETH, BTC, and USD.
For a long time, this was a "grey-box" like Stream, and we gave serious / severe warnings as a result.
HOWEVER, they recently made their wallets public.
After the Stream/Elixir collapse, Avant was quick to post an Octav dashboard showing the backing of their USD vault.
Currently you can track 100% of savUSD underlying assets there:
They intend to work with @pennyworks for their NAV tracking and clarity for the ETH and BTC protocol.
So please note that those are not fully transparent yet and should be treated as such.
HOWEVER, let's actually dig into the backing.
savUSD Exposure (over $100K):
@aave:
⇒ USDE
⇒ PT-USDE
⇒ PT-SUSDE
⇒ WETH
@term_labs:
⇒ PT-SUSDE (Jan)
⇒ PT-USDE (Nov)
@eulerfinance
No collateral exposure,
⇒ just a bunch of vesting $EUL
Note: This doesn't count towards NAV
Holding:
⇒ $101K USDT
What I noticed:
No Stream Exposure
No Elixir Exposure
No Stables (USDx) Exposure
However, Avant did have Stream and Elixir exposure prior to everything falling apart, and it should be noted that strategy vaults in general discretionarily allocate without necessarily going through a risk committee and governance process.
I.E., transparency doesn't mean safety, but it does prove solvency, which is great.
I like the added benefit of the junior tranche, but be mindful it only covers up to a 10M loss.
Anywho AVANT IS NOT A PROTOCOL THAT I WORK WITH.
They have also recently transitioned strategy teams to @Borealxyz, who has insisted on being more transparent, which I appreciate.
DO NOT TAKE THIS AS AN ENDORESEMENT OF AVANT. Strategy vaults are effectively hedgefunds. While this has the benefit of a junior tranche absorbing losses, you are still accepting the risk profile of the underlying team.
That said, h/t to Avant for committing to more transparency.
I hope to see it for savETH and savBTC next.
10.71K
50
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.