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DeFi Stars
by AlgoLab
A long-only approach with established DeFi assets and derivatives tokens during the uptrend market periods. React quickly to market changes by managing downtrends.
Automated Portfolio Optimization
Deposit your tokens into the vault and let the vault and its automated rebalances optimize them across DeFi opportunities.
Strategy Highlights
Maximum capital growth preference, well suited for portfolios with an initial basket of MKR, AAVE, COMP, LDO, CRV, and USDC.
Carefully balanced asset allocation targets based on our custom trend indicator. Individual asset volatility and risk aversion management.
Automatic order size and execution frequency to improve trend reaction while reducing fees and slippage.
The vault provides users with a strategy to achieve strong growth in their portfolio by focusing only on high-cap assets that offer significant rewards in a future with simplified DeFi adoption. The vault's initial portfolio includes MKR, AAVE, COMP, LDO, CRV as speculative tokens and USDC as a base asset, with a default portfolio distribution of 50% USDC to reduce risk and capture later opportunities.
To evaluate the effectiveness of the proposed strategy, we compare the portfolio's performance against a benchmark scenario of holding assets with no stop plans for price. We evaluate the strategy using Return on Equity (ROE), Maximum Drawdown (MDD), and Sharpe ratio, which is a popular indicator for portfolio tracking.
Overall, DeFi Stars provides a disciplined and diversified exposure to the DeFi sector, helping users manage downside volatility and optimize returns over time. The rebalancing strategy offers a significant improvement over the benchmark scenario and can help users achieve their goals.