Optimizer Finance DAO

August 23 - September 13, 2024

Submission deadline: September 8, 11:00 hrs

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Project Title: Optimizer Finance DAO

Problem:

Traditional investors find the crypto asset market highly volatile and complex to manage without prior experience with on-chain tools.

Solution:

A decentralized platform offering tokenized investment products in crypto assets, managed in an automated and transparent manner through a DAO.

Key Features:

• Defined strategies: Each product aligns with a specific investment thesis, offering options for different risk profiles and objectives.
• Risk management: Optimized for financial metrics such as Value at Risk (VaR) or Expected Shortfall (ES), protecting investor capital.
• Automation: Operates with minimal human intervention, reducing costs and errors.
• Intelligent rebalancing: Uses Machine Learning (ML) algorithms based on on-chain data to adjust the portfolio and maximize returns.
• Transparency: Fully auditable on the blockchain, providing trust and security to investors.

How It Works:

1. Product creation: The DAO community proposes and votes on the creation of new investment products, defining the key parameters (assets, risk level, ML model, duration, etc.).
2. Investment: Investors acquire tokens that represent a share in the chosen investment product.
3. Automated management: The product operates autonomously, rebalancing the portfolio according to market conditions and established parameters.
4. Transparency and audit: All transactions and operations are recorded on the blockchain and can be audited at any time.

Value Proposition:

• Ease of use: Simplified access to sophisticated investment strategies.
• Profitability: Risk-adjusted return optimization.
• Transparency: Full visibility and control over investments.
• Security: Capital protection through risk management and blockchain technology.

Summary

A dApp that manages a crypto portfolio, similar to an ETF in the web3 context, offering:

• Expected returns
• Risk reduction
• Diversification benefits

The application will use data and projections to back its claims, allowing users to invest in a diversified basket of liquid tokens managed by machine learning algorithms. This will provide greater efficiency and optimization in digital asset management, dynamically adapting to market conditions.

Team Members

• Diego J

• Brandyn H

• Antonio T

• Contains the 2 main crypto assets

• For traditional and institutional investors

• Secure and efficient exposure to the on-chain market.

  Product Example: Token101 by OptimizerFinanceDAO(R)

  Investment thesis:

Proposed Product: C101

| Feature | Detail | | ----------- | ---------------------------------------------------------------------------------------- | ----------- | | Name | C101 | | Duration | 5 years | | Blockchain | Ethereum Mainnet | | Assets | ETH, BTC | | Rebalancing | Daily, based on an open-source ML model running in a Trusted Execution Environment (TEE) | | Data | Obtained hourly via Chainlink | | Model | Portfolio Optimizer V3 |

| Feature | Detail | | ----------- | ---------------------------------------------------------------------------------------------- | ----------------------------- | | Name | C201 | | Duration | 3 years | | Blockchain | Ethereum Mainnet | | Assets | MATIC, SOL, AVAX, LINK, UNI, AAVE, DOT, and other selected altcoins | | Rebalancing | Weekly, based on an open-source ML model running in a Trusted Execution Environment (TEE) | | Data | Obtained in real time through decentralized oracles such as Chainlink and Band Protocol | | Model | Portfolio Optimizer V4 (optimized for high risk and return) |

See also: Tokenomics | RWA Financial Model | Critical Path | Prizes | Tech Stack

Related projects: ETH Global NYC | Financial Contracts