Targeting yield generation with minimal volatility and low BETA to underlying cryptocurrency price movements
Target 6-10% yield per annum
Market neutral strategy due to stablecoin deployment
Monthly liquidity seeking
Targeting DeFi Yield Opportunities Through Stablecoins
The strategy focuses on DeFi yield generation strategies deployed using stablecoins to limit market volatility investing opportunistically in favorable CeFi lending and other yield opportunities.
DeFi Lending
Liquidity Mining
Stablecoins
CeFi Lending
Others
Key Offering Details
get startedFund
Wave Select 5 Crypto Fund (BVI master entity with US and BVI feeder)
Investment Objective
Deliver 6-10% yield per annum
Discretionary Dividend
Targeting 0.50% of net NAV per month after fees & expense
Investment Manager
Wave Digital Assets LLC
Fees
1% p.a. management fee, 10% performance fee. See Prospectus for further details
Domicile
BVI (Offshore ISIN: VGG9500U1021)
Investment Minimum
$100,000
Offering Schedule
Monthly subscription & redemption
Service Providers
Willkie (US Legal), Harneys (Offshore Legal), StoneGate Global (Fund Admin), Deloitte (Auditor)
Service Providers
Overview of Wave’s Handling of UST Depeg 2022
Analyzing the Wave Digital Assets investment team’s active management of an adverse market event
Saturday, May 7th
Wave team takes action
While monitoring all open positions and the overall ecosystem, Wave’s DeFi & trading team noticed signs of instability regarding UST (increased price volatility, imbalanced Curve pool) and swiftly removed all exposure (approx. $16m) to mitigate risk.
Sunday, May 8th
Calm before the storm
On Sunday the peg appeared to stabilize, fooling many other investors into believing the storm had passed. However, our analysis of the underlying metrics indicated more turmoil to come.
Monday, May 9th
UST begins to fully depeg
Mass panic ensues among investors as UST begins to rapidly lose its peg. In a matter of hours, UST depegged by over 34%, wiping out billions of dollars in value.
Friday, May 13th
Decisive action pays off for Wave
UST peg fails entirely, diving below $0.10 as the value of LUNA goes to zero. All crypto prices tumble as panic spreads throughout the market.
Risk Factors
Market Risks
MARKET RISK
Blockchain-native assets make up the vast majority of collateral across decentralized finance. Therefore every actor is exposed to movements in the market prices of those assets.
Additionally, since yield is paid out in wrapped or native tokens, the value of your yield may decrease if the underlying token prices drop.
IMPERMANENT LOSS
Occurs when one side of the pair decreases in value compared to the other side, leaving the liquidity provider holding more of the lower-value asset and thereby losing out on gains in the higher-value asset.
This imbalance can correct if the assets in the pool revert to their previous price parity, which is why it’s known as Impermanent loss. The higher the volatility of an asset, the higher the potential impermanent loss risk. This is one reason that the fund will only deploy with stablecoin as they’re a lower volatility asset.
LIQUIDATION
Risk of failure of an asset that is being used as collateral on the protocol; risk of liquidators not capturing liquidation opportunities in a timely manner, or low market liquidity of the principal asset to be repaid.
Systems & Technology Risks
SMART CONTRACT
The daily operation of decentralized capital markets are autonomously and deterministically dictated by the codebases of each platform and the integrations between platforms.
Coding flaws can be exploited by bad actors at will, with little to no recourse available to victims.
DESIGN & INCENTIVE
The underlying digital ledger technology, and added features such as scaling technologies, rely on complex game-theoretic incentive designs. Flaws in the incentive design can skew operational outcomes.
LIQUIDATION
Risk of the Oracle system not properly updating prices in case of extreme market downturn and network congestion; risk of the Oracle system not properly submitting prices, causing improper liquidations.
Credit Risks
SMART CONTRACT
The daily operation of decentralized capital markets are autonomously and deterministically dictated by the codebases of each platform and the integrations between platforms.
Coding flaws can be exploited by bad actors at will, with little to no recourse available to victims.
DESIGN & INCENTIVE
The underlying digital ledger technology, and added features such as scaling technologies, rely on complex game-theoretic incentive designs. Flaws in the incentive design can skew operational outcomes.
LIQUIDATION
Risk of the Oracle system not properly updating prices in case of extreme market downturn and network congestion; risk of the Oracle system not properly submitting prices, causing improper liquidations.
Stablecoin Specific Risk
LOSS OF PEG
When trading stablecoin pairs, if one of the stablecoins in a pool goes significantly down below the peg of 1.0 and never returns to the peg, it will effectively mean that pool liquidity providers hold almost all their liquidity in that currency. Please check out our Stablecoin Research Paper for more information on these risks, https://wavegp.com/stablecoin-research/
Regulatory Risks
The regulatory environment surrounding these assets continues to develop and there are risks new legislation may impact these assets.
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How to Invest in the Wave SAYF Fund
get started*The material provided herein does not constitute an offer to sell or a solicitation of an offer to buy any interest in the Fund or any other securities. Any offering of a Fund will be made only in accordance with the terms and conditions set forth in the Fund’s private placement memorandum or similar document (Offering Materials) Please see IMPORTANT DISCLOSURES provided at the end of this presentation.
**WAVE DIGITAL ASSETS LLC IS REGISTERED WITH THE US SECURITIES & EXCHANGE COMMISSION AS AN INVESTMENT ADVISER, CRD 305726. PLEASE SEE THIS SITE FOR MORE INFORMATION, OUR DISCLOSURE BROCHURE AND OUR RELATIONSHIP SUMMARY HTTPS://ADVISERINFO.SEC.GOV/FIRM/SUMMARY/305726.
***FUND INTERESTS ARE SUITABLE ONLY FOR SOPHISTICATED INVESTORS FOR WHICH AN INVESTMENT IN THE FUND DOES NOT CONSTITUTE A COMPLETE INVESTMENT PROGRAM AND THAT FULLY UNDERSTAND AND ARE WILLING TO ASSUME THE RISKS INVOLVED IN THE FUND’S SPECIALIZED INVESTMENT PROGRAM. Certain criteria, including minimum financial status and experience may apply.
Services
Our team has deep institutional experience managing third-party capital across traditional and decentralized finance, in particular venture capital, derivative, lending, and staking expertise.
In addition, we have built strong relationships with institutional service providers leveraging our blockchain and digital assets network across the world.
Treasury Management
Wave’s Corporate Treasury Management services include digital asset lending programs and derivative strategies designed to capture additional yield and fine-tune risk, with a range of qualified custodians and counter-parties. Wave also operates across multiple DeFi protocols for lending, borrowing, trading, yield farming, staking, and mining. Wave applies our deep experience in digital asset strategies to bespoke risk managed portfolios. Wave Digital Assets is SEC regulated focused exclusively on digital assets, and have a fiduciary duty to protect our clients.
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Wealth Management
Your ultimate solution for digital asset portfolio management, combining custody, execution, and tailored investment strategies.
Wave Digital Assets is a leader and pioneer in digital asset investment management. We are focused exclusively on digital assets, our offering is designed to provide the ultimate all-in-one portfolio solution for corporate and individual investors, and we have taken steps to ensure that assets are secure, growing, and generating income.
Protocol Inventory Management
Tokenized staking fund for your protocol. Programmable liquidity through fully-compliant global exchanges. We deal with all the administrative hurdles providing you the ease of use
Learn MoreInvestment Funds
Wave’s investment team draws on decades of asset management expertise to offer actively-managed strategies.