Protocol Design

The protocol facilitates the creation and management of diverse investment strategies, collectively referred to as “Farms.” These strategies encompass a range of DeFi yield farming methods, including staking, lending pools, and collateralised debt obligations (CDOs), as well as more sophisticated approaches like rebalanced index funds (e.g., a Memecoin Index Fund) and more novel concepts such as AI agentic Fund of Funds. While there are a variety of strategies possible to be deployed, the protocol ensures the secure deployment and effective performance and risk management of each Farm through the efforts of verifiers. This is accomplished via the Sharpe Consensus, which employs a Proof of Returns mechanism to establish risk-reward benchmarks. The mechanism also promotes competition among stakeholders by implementing block-by-block ranking and weighting.

Protcol Design

The protocol supports both permissioned and permissionless Farm creation, enabling Institutional Farm Owners to leverage their brand reputation and trustworthiness. Ultimately, the decision of where to provision liquidity rests with investors, empowering them to choose Farms that align with their goals.