Key Information
Fund Overview
Investment Strategies
The fund actively allocates capital across a range of yield optimization techniques, aiming to maximize nominal returns on stablecoins (USDC, USDT, DAI) while maintaining zero historical drawdowns on the fund’s price per share
Capital allocation across strategies is guided by a disciplined investment framework that combines in-house expertise in protocol risk assessment and a systematic evaluation of market and macroeconomic trends.
Performance
Live PerformancePortfolio Allocation
Key Metrics
DAMMstable vs Benchmark
APR vs AAVE
Percentage Outperformance vs AAVE
DAMMstable generated approximately 2× the weekly return of AAVE, while maintaining near-zero correlation (−0.038) to lending rate movements, indicating an independent yield source rather than leveraged credit exposure.
Risk Disclosure
We always seek to minimize risk wherever possible; however, decentralized finance (DeFi) operates in a highly adversarial environment where protocols are frequently targeted for exploits and attacks. The following are key risks associated with the DAMM USD stablecoin Money Market Fund:
Smart Contract Risks
Despite thorough due diligence, smart contracts can contain undiscovered bugs or behave in unanticipated ways, resulting in assets being frozen, lost, or exploited. This risk, inherent to the DeFi ecosystem, could impact the stability and security of the fund’s holdings.
Custodial and Multisig Risks
Assets within this fund are stored in a Gnosis Safe Multisig wallet for added security, requiring multiple authorized signatures for transactions. However, if all signers’ private keys are compromised, the entire asset pool could be at risk of loss.
Stablecoin Depeg Risks
While stablecoins are generally designed to maintain a 1-to-1 peg with the U.S. Dollar, temporary depegs can occur during periods of market stress. Although many of these are resolved quickly, there is a risk of a permanent depeg, which could lead to significant losses for the fund if the stablecoin’s value diverges from its intended dollar parity.
Policy - Protocol Deployment
| Chain | Protocol | Action | Tokens |
|---|---|---|---|
| Ethereum | ◎ Aave v3 | Supply · Borrow | USDC, USDT, USDS |
| Ethereum | ◉ Spark | Stake | USDS |
| Ethereum | ◆ Morpho | Supply | USDC, USDT |
| Ethereum | 🐮 CoW Swap | Swap | USDC, USDS, USDT |
| Arbitrum | ◎ Aave v3 | Supply · Claim | USDC, USDT |
| Base | ◆ Morpho | Supply | USDC |
| Base | Ⓒ Circle CCTP | Send · Claim | USDC |
| Gnosis | ◎ Aave v3 | Supply | USDC.e, wxDAI |
Disclosures
This Fund may not be available to certain persons or in certain jurisdictions, and the availability of this Fund may be limited in your jurisdiction. The Fund is not registered with, or approved by, any financial or regulatory authority and does not constitute an investment fund, securities business, or virtual asset service provider. Nothing in this fact sheet constitutes, or should be taken as, an offer to buy, a solicitation to purchase or sell.
The information provided is for general informational purposes only and may be updated or amended at any time without notice. It does not constitute financial, legal, tax, or other professional advice. You should consult with your professional advisers before making any decisions.
Participation in crypto-assets, including through this Fund, involves significant risk, including high volatility and the potential loss of your entire investment. Returns are not guaranteed. You should conduct research and due diligence before engaging in any crypto-asset activity.