The quick view
December: -10.02% (NAV = 0.9739 ETH)
Since inception & 2022: -2.61%
High watermark: 1.0579 ETH
Performance
The outlook above may look bad at first with only three positive months out of nine (as the investment strategy really only started on April 1st) but with a maximum drawdown (MDD) of 11.87% in what we could call one of the worst year of crypto history, the strategy is promising and offers green sparkles of hope in the future.
In 2022 the portfolio slowly allocated non-ETH positions up to 88% at the later stage, which is a great indicator of diversification as promised, reinforcing the argument of the 11.87% MDD being decent while most cryptocurrencies lost dozens if not hundreds percent against ETH this year.
Thanks to the decentralized technology stack 10102 Capital was not affected by any of the catastrophic events of the year either which helped our performance resiliency.
Strategy
This last quarter was relatively quiet both in market movements and infrastructure activities. The portfolio of 10102 Capital has been solid overall and I feel confident about its composition for the next 2 years.
In the big picture, 2022 was the year of inception of 10102 Capital ending with a robust set of infrastructure investments. I am excited about 2023 and some of the plans we already have:
We will be staking our Ethereum thanks to the latest Enzyme integration with Kiln (native, non-custodial staking), averaging a 5% additional return for the asset.
We will add a few more distressed assets but nonetheless essential to the ecosystem, some of which are described below in the “next wave” section.
We aim to utilize the governance assets and support their respective networks in a positive direction, eventually becoming a credible and eligible hub for governance delegation over time.
Portfolio updates
Aave
AAVE is now part of the portfolio, about 8% of it at the start of 2023. We may look to accumulate more as and if it continues to go down against ETH in these market conditions.
With a smooth Ux and battle-tested SC security, Aave is a fundamental infrastructure of DeFi today for both institutional and retail. Their own stable coin $GHO is coming as well, more on that probably in next edition.
Next wave
There are many infrastructure protocols that are on the path of becoming significant, if not essential to the industry. We keep studying this space closely and these are just a few on that list. Keep in mind that fundamentals are not sufficient, we need the capture of value component to be well designed too and it sometimes come at later stages.
Gelato is a protocol to automate smart contract executions at its core, but aims to extend functionality to become an essential decentralized backend of web3. More research needs to be done on the value proposition of the token GEL, but this one is definitely on the radar.
TheGraph enables data structures and queries on the Ethereum blockchain. By far the leader in this segment, TheGraph fulfills such an important piece of infrastructure in the backend of web3. In fact, the protocol used by 10102 Capital Enzyme Finance could not operate properly without TheGraph, like most protocols in the space. GRT holders can support indexers & earn rewards by delegating $GRT.
Uniswap is the emblematic DeFi DAO, always pushing forward and defining the new trends and their limits. Uniswap has the most volume of all DEXes (decentralized exchanges) and gets income through transaction fees. More inflow was observed after the failures of the various CEXes in 2022 and if that’s not enough, NFTs are now part of the trading features.
Filecoin has been one of those useful products with inefficient value capture so far. What if that could change as early as Q1 2023? Indeed FVM (Filecoin Virtual Machine) and smart contracts are expected by then and that could potentially fill the tokenomics gap.
VitaDAO is leveraging the strength of NFTs for IPs with real science, more specifically longevity research, while being governed by a decentralized autonomous organization (DAO). We keep following very closely and so far VitaDAO seems to be the best play in the biotech industry as it takes the lead in DeSci, or decentralized science.
Disclaimer: I have been personally invested in VitaDAO from its inception, just like most other fundamental projects 10102 Capital is allocating to.
Data / Bookmark it
Coverage on Polygon by OurNetwork
Coverage on The crypto that matters in 2022 by Crypto Archive$
10102 Capital Info
Dashboard
(select ETH on the upper right for proper benchmark numbers).
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Special NFT By ATSALA
10102 is our chapter 2 and futuristic brand.
Tokenpot was our chapter 1. We created a dedicated NFT * to commemorate this early adventure. A collection of 50 badges of honor are up for grab. The claim page was first sent to the initial investors, and now we share the link with you.
* this badge is free and has no value except being an historical proof of participation in the early phase of Atsala, and more broadly, an early experience in the crypto world (2015-2019).
Finally, with love and many dreams,