Teragon
  • 🌳Introduction to Teragon
  • 🏛️TERAGON'S THREE PILLARS
    • Vectors
      • Vector Basics
      • Benchmarking Methodology
      • Global Crypto Index (GCI)
      • Smart Contract Index (SCI)
      • Chain Ecosystem Indices (CEIs)
      • GameFi Index (GFI)
    • Tensors
      • Balanced Strategy
      • Buy The Dip Strategy
      • Risk-Control Strategy
      • All-Weather Crypto Strategy
    • Hypercubes
      • Ping-Pong Option Vault
      • Worst-Of Put Vault
      • Long Call Options on Tensors
      • DeFi Option Vault (DOV)
  • Teragon - Bastion Managed Vault
    • Overview
    • Investment Guidelines
    • Implementation
    • Fee
    • User Guide
  • Teragon - Bastion Degen Yield Vault
    • Overview
    • Fee
  • TERAGON DAO
    • 🏡Overview
  • DEVELOPERS
    • Deployed Contracts
  • Links
    • Twitter
    • Medium
    • Discord
    • Website
Powered by GitBook
On this page
  • Target Allocation
  • Yieldfarms and Stablecoins
  • Directional exposure selection and weightings
  • Volatility Strategies:
  • Rebalancing Methodology
  • Vault Management
  1. Teragon - Bastion Managed Vault

Implementation

Target Allocation

Stables: 55-75% Tokens: 10-30% Option Strategies: 10-20%

Yieldfarms and Stablecoins

Our stablecoin holdings will be deployed for yield. This will be run like a diversified portfolio of bonds avoiding concentration on any specific yield source. We will use fully collateralized stablecoins only. Cash will be deployed in well-established projects. We will do regular credit risk evaluation of our exposures and cap our exposure to 25% in any single yield farm.

Directional exposure selection and weightings

Individual coin exposure is capped to 10% for high market cap coins such as Bitcoin or Ethereum. Individual altcoin max 1% of the portfolio. No more than 5% in aggregate in altcoins. Open to VC / SAFT investments but extremely well-vetted projects with no more than 1% of the total portfolio allocated.

Volatility Strategies:

Call and put overwriting strategies are primarily used as a rebalancing tool i.e. allocating part of stablecoins to buying the market in crashes and using call over-write as a way to take off exposure in rallies. No more than 10% allocation to puts and no more than 10% allocation to calls. Potential use of AMM when implied volatility levels are lower than AMM breakeven fees. Other uses of long volatility strategies for tail risk hedging depend on market conditions.

Rebalancing Methodology

Portfolio rebalancing to achieve target weights will be done once a month on Options expiry to synergize with call/put options. Intra-month market rebalancing actions will be taken in the case of extreme market moves (>25%) or in the case of any security events on portfolio tokens. These are general guidelines and discretion and flexibility will be used from time to time to take advantage of or avoid losses due to extraordinary market conditions or lack of market liquidity.

Vault Management

The vault is managed via gnosis multi-sig with a 2/3 authority.

PreviousInvestment GuidelinesNextFee

Last updated 2 years ago