Toros Finance has expanded its product range as part of a full launch. This includes a number of new innovative vaults to help simplify decentralized finance for everyday users.
Toros dynamic vaults have transparent payoffs that evolve over time to remain profitable and competitive. Depositors can simply set and forget.
The 3 new vaults are:
- Stablecoin Yield Dynamic Vault - dUSD
- Bitcoin Yield Dynamic Vault - BTCy
- Uniswap V3 Ethereum Managed Liquidity Dynamic Vault - mlETH
Current State of DeFi:
DeFi is getting increasingly complex and vaults often have hidden risks. For example:
1. Yield pools are only valuable in the short term
Going into today’s yield pools is normally only good in the short term. Depositors need to keep an eye on whether the yield strategy is still valid or if the market has moved on to better things. There are no true yield aggregators and users have to switch pools to access better strategies. This can be both risky and time consuming.
2. Vault risks are often hidden
Nobody wants a false sense of security only to get rekt. Complex derivative products are becoming very popular and often are simplified to attract investors. As an example, Option selling vaults are mis-marketed as yield products. Everything is fine until the vault blows up with overnight losses.
3. Liquidity management has become harder
Uniswap V3 delivered on the promise of increased capital efficiency, but with it has created an unequal playing field for liquidity providers. It has become more difficult to profitably manage LP positions and impermanent loss becomes permanent with ineffective LP rebalancing.
Considering this landscape, Toros is launching new dynamic vaults to solve these issues:
Toros Automated Solutions
What are Dynamic Vaults?
Dynamic Vaults are an algorithmic investment strategy that targets a specific payoff.
The investment strategy can change for improved returns, but the underlying market risk remains constant.
For example, the Stablecoin Yield vault targets USD yields, but the underlying assets and strategy can update to improve yields.
Stablecoin Yield Vault - dUSD
This Toros Stablecoin vault hunts for the best safe USD yields to hedge inflation. This vault automatically farms incentives from Polygon based stablecoin yield farms.
It’s a true aggregator: once a better stable strategy is found, the vault switches to it to maximize yield. Later, it will also expand to spread risk across multiple strategies at once.
Currently dUSD is in a Balancer pool comprised of USDC-DAI-MiMATIC-USDT. This pool is earning BAL and Qi rewards.
Every time the pool stakes more tokens, it automatically harvests the rewards and rebalances the newly acquired stablecoins to restore equal weighting. After ensuring equal weighting, the pool then provides those assets as liquidity and restakes.
Upon depositing into dUSD, the algorithm ensures the deposited assets are properly rebalanced so they can be supplied as liquidity and staked.
dUSD is designed in a way so that investors have an auto-compounding stablecoin instrument that optimizes for the best yield without having to continuously manage the position themselves.
Highest sustainable Bitcoin Yield vault - BTCy
The Toros BTC Yield vault aims to farm the highest supported safe Bitcoin pools on Polygon. It will switch farming pools when higher Bitcoin yield opportunities arise over time, for long term performance. ETH & other yield vaults will be released soon.
At time of publishing, vault liquidity is in the Balancer wBTC-renBTC pool harvesting incentives.
Uniswap V3 Managed Liquidity vault - mlETH
The Toros ETH Managed Liquidity vault automates the management required to efficiency operate Uniswap v3 liquidity pools.
This vault uses backtested liquidity provision (LP) strategies to increase yields and minimize rebalancing losses. Rather than rebalancing entire positions, the vault extends and contracts the liquidity position to remain in-range. The strategy will evolve over time to capture more of the trading fees, including Just-In-Time (JIT) liquidity.
Future for Toros
As Defi derivatives grow, Toros will integrate promising protocols to expand and build new structured products with specific payoffs.
Here’s a great overview of the derivative space currently by @0xperp:
Custom Automated Strategies
Do you have an amazing strategy you would like to see implemented? Reach out and DM us on Twitter and let us know. https://twitter.com/torosfinance
Utilizing the power of dHEDGE’s SDK makes it possible to automate strategies by having a bot manage a dHEDGE pool. This opens up to many opportunities; you can interact with any of the integrated protocols to trade, lend, borrow, provide LP and stake. Current integrated protocols are 1inch, Sushi, Quickswap, Uniswap V3, Balancer, AAVE.
About Toros Finance
Toros Finance is a dHEDGE incubated protocol integrating Aave and 1inch. Toros Finance aims to simplify access to complex derivative strategies, safely, via offering these strategies through a single token.
Toros Finance offers a suite of on-chain tokenized derivatives products. Currently Toros is deployed on Polygon and is under development to deploy on Optimism.