Treasury Services Overview
Separately Managed Accounts
- Segregated portfolios with bespoke investment strategies
- Two options: sub-account structure under Wave Digital Assets, or separate British Virgin Islands business entity
- High-touch, white-glove service with personalized advice
Portfolio Strategies
- Digital asset yield strategies facing centralized and decentralized counterparties
- Digital asset derivative strategies designed to capture additional yield and fine-tune risk
- A range of vetted custody providers and counterparties available, reviewed for risk
Liquidity Services
- Assisting protocols and UHNW with liquidity
- Active trading management designed to accommodate efficient transactions and manage risk
- Multiple yield and liquidity strategies to suit different timelines and risk profiles
Stablecoin Case Study
Analyzing the Wave Digital Assets investment team’s active management of an adverse market event
Saturday, May 7th, 2022
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, 2022
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, 2022
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, 2022
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 Management Process
Wave’s risk management framework and credit due diligence helped avoid any exposure to distressed entities following UST’s collapse in May 2022.
Due Diligence Process
Wave’s Credit Due Diligence of potential counterparties led our Senior Credit Review Committee to avoid any relationships with many of the counterparties that came under pressure in June of 2022. Our Credit Due Diligence Analysis includes:
- Review of their Organizational Chart, Corporate Legal Structure, and Balance Sheet*
- Extensive questionnaire of Risk Management & Security Structures, Counterparty Diversification/Concentration, and
impactful credit or liquidation events.
Quick Action & Exposure Reduction
Terra’s demise and ensuing market events led 3AC and a number of CeFi lenders to face insolvency issues, affecting the entire crypto market. During these events Wave quickly and successfully worked to remove exposure to distressed CeFi counterparties.
Wave has since taken more of a risk-off approach in managing client assets during turbulent times, and will continue to evaluate market conditions for disciplined deployment of client assets.
Competitive Advantage
Unique advantages compared to similar service providers
Wave Digital Assets is an Investment Adviser focused predominantly on digital assets. We have a fiduciary duty to put our clients’ interests ahead of our own.
We keep our fee structure simple.
Fiduciary = legally obligated to work for your best interests alone, a higher standard than broker/dealers and unregulated providers of crypto investment management services.
Client assets are held in Separately Managed Accounts (SMAs) or Separately Managed Entities (SMEs). Each SME is a British Virgin Islands-domiciled entity, facilitating asset and liability segregation in an offshore structure designed to be tax neutral.
Fees
*The fees and costs associated with Treasury Management Services may vary and are negotiable. The fees stated are representative of the typical fees charged to investors. Performance Fees apply only to Qualified Investors. Fees charged for Options, Futures and Performance are in addition to the Per Annum management fee. Other costs may apply. Please see the Investment Management Agreement for specific fees and costs attributable to the account.
1%
Per Annum
On assets under management
15%
Of Option Premiums
Generated using Wave’s Derivative Strategies
10%
Of Performance
On all DeFi yields generated (Qualified Investors Only)
0.1%
Of Futures Contracts
Calculated on notional value
*Wave Digital Assets is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC CRD 305726 is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave Digital Assets at www.wavegp.com.
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.
