Invest with Lykos - Digital Asset Fund I, LP
1
Expected Deals/Year
0
Unique LPs have invested
Note from Lykos - Digital Asset Fund I, LP
As its investment strategy, the Fund uses proprietary investment selection criteria and methodologies developed by the Investment Manager to invest in digital currencies, cryptocurrencies, digital assets, cryptographic tokens and other types of assets based on encrypted decentralized blockchain based protocols and assets related thereto (together referred to as “Blockchain Digital Assets”).
The Investment Manager seeks to achieve the Fund’s objectives by trading Blockchain Digital Assets listed on various centralized and decentralized digital asset exchanges. The Investment Manager intends to use a four-part strategy to achieve its investment objectives divided into separate modules.
Under Module 1, the Fund will purchase various Stablecoins (as defined herein) and investing them in decentralized finance (“DeFi”) projects that include liquidity, yield generating and reward programs for storing and registering Blockchain Digital Assets with their network investments, such as yield farming and proof of staking. The Fund will focus on such staking and yield farming protocols that are expected to provide returns on average of 8.4% annual percentage yield and follow U.S. and G7 compliance standards. Annual percentage yield is commonly calculated, (1+(period rate/number of compounding periods))n - 1, where r = period rate and n = number of compounding periods. G7 is an informal grouping of seven of the world's advanced economies and includes Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union. “Stablecoins” are cryptocurrencies that attempt to peg their market value to some external asset or basket of assets such as a fiat currency or a commodity’s price such as gold.
Under Module 2, the Fund will actively trade what the Investment Manager believes to be highly liquid coins or tokens, based on market cap, and will likely include investments in Bitcoin and Ether. These cryptocurrency coins or tokens will primarily be in the top 50 cryptocurrency coins or tokens based on market capitalization, although the Investment Manager may invest in smaller cryptocurrency coins or tokens not listed on the top 100 that it believes has sufficient liquidity. The Fund intends to periodically use profits generated from the active trading and convert them to Stablecoins invested under Module 1.
Module 3 will incorporate trading of Blockchain Digital Assets and will be conducted by one or more algorithmic trading programs developed by the Investment Manager that will automate trading decisions regarding investments in Blockchain Digital Assets (the “Algorithm” or “Algorithms”). The trading decisions made by the Algorithms will continuously adjust the Fund’s portfolio based on curated market indicators and other information collected by the Algorithm. The underlying programing of an Algorithm will take into account a Fund’s investment parameters and risk tolerances as determined by the Investment Manager.
Module 4 is expected to further capitalize on staking and yield farming through DeFi protocols and invest in low-market cap projects before they become mainstream in an effort to increase profitability for our investors as these projects grow.
