Fully on-chain
More specifically, how can a fund operate directly on a blockchain? Melon Protocol is a crypto project that has emerged in 2016 with the ambitious goal of building the future of asset management. The original core team and Melon Protocol community have therefore been developing a suite of smart contracts that could allow any type of asset management strategy to run on Ethereum. And we made use of it as soon as possible.
We are in a close relationship with Avantgarde Finance, the main contributors to the protocol today. In fact, some features have been developed specifically for us, such as a US accredited KYC onboarding process.
The main take away here is that Enzyme Finance* (*its new name as of December 2020) is an essential part of our fund, the core engine that we are using for all the fund operations.
As a reminder, the new fund 10102 Capital was officially announced on the brand new twitter account on February 22, 2022. While purposely remaining low key, the manager and another smart investor took a leap of faith right away and trading started on April 1st, at the very beginning of a calendar second quarter.
Accumulating ETH via fundamental positions
The benchmark is Ethereum, which means that performance fees are only executed when the fund outperforms ETH rather than USD. That is because in our book, assets such as Bitcoin and Ethereum will always outperform USD in the long run and therefore it is not sufficient to ‘just’ do that. We want to beat the king of smart contracts itself, ETH. In other words, we want you to have more ETH as time goes on while remaining fully invested in the crypto space (>75% of the portfolio at all times). This fund is for the core believers, the fundamentalists, and the Ethereum hodlers.
Strategy
The high level strategy of this fund is to invest on the fundamentals, or more precisely, the fundamentals of tomorrow. What do we mean by that?
Once again we didn’t create a fully US compliant vehicle to invest just on blue ships that are already popular. The real focus here is to envision what the world will ideally look like in the next 5 to 25 years, and invest on all the necessary pieces of that outcome. Not only we want to support that outcome with our capital, but we want to build the puzzle that will bring us there. Vision is the keyword and that’s what comes after the basics of today. After 101 comes 102. The fundamentals of tomorrow.
Another aspect of the strategy is to stay keen on the latest DeFi developments and leverage the yield opportunities that have been proven to be safe. Having experienced DeFi from its very beginning and followed it through all along, the manager is well situated to take on the opportunities relevant to the portfolio.
Not an investor yet?
Do not worry, even though the NAV is now above the initial 1 (that is 1 ETH per share), most of the actual growth is likely to come between now and the next few years. Here is how you can get more familiar with us or be a part of it:
Dashboard (select ETH on the upper right for proper benchmark numbers)
Email to info@10102.io
* US accredited investors only.