🩺Fractality's Investment Methodology

The Goal

Fractality's Yield Vault seeks to deliver high yield (~20%) to users with limited risk (drawdown of ~2%) and low costs (no need for high-frequency trading).

Investment Instruments

We focus on Defi. The income sources are categorised into:

• Mining/Staking

• Borrowing/Lending

• DEX and Liquidity providing

• Speculation

The Fractality Yield Vault utilizes the first three categories to generate yield. As for pure speculation, we believe users can effectively manage it themselves through proper research.

Methodology

Fractality aims to deliver high yield with low risk and low cost by effectively addressing the trade-off between:

• DEX and Liquidity Providing: This category offers higher yields (~20% or more) but comes with high market risk or impermanent loss.

• Borrowing/Lending: This category generally provides lower yields (~5% to 10%), but with lower risk and higher liquidity, supporting real-time withdrawals.

Our approach includes both macro and micro-level analysis to select the most suitable chain and protocol, along with quantitative analysis to hedge downside risks.