Introducing the First Exponent Vault: Ex-ETH V1

Exponent
3 min readDec 15, 2021

Website | Litepaper | Twitter | Medium | Discord

About 48 hours ago, we announced the Beta Release of the Exponent Vault on the Ethereum mainnet. We are very grateful for the early community support 🙏 The first round of deposits, with a goal of 25 wETH, was filled in under 12 hours! 🥅 🚀

In this post, we’ll dive into the details of the underlying strategy for the first Exponent vault, Ex-ETH V1.

Why Ex-ETH?

Throughout 2021, we’ve seen countless DeFi and NFT projects raise capital to begin building their products. The challenge for them, however, is finding a solution to effectively manage the capital raised in a way that generates dependable cash flow for long-term operations and development. For most projects, this means striking a balance between:

  1. Growing stablecoins to fund operations and salary
  2. Accumulating ETH to cover on-chain activities and grow treasury
  3. Protecting the raise or revenue principal while managing the long-term budget
  4. Accessing on-chain products that are easy to understand and require very low levels of engagement from the team

The cryptocurrency market is highly volatile. Early-stage teams and communities will find it increasingly difficult to carry these capital objectives efficiently as their capital needs grow.

Enter Ex-ETH

The New 60/40 for Projects and DAOs

Ex-ETH is a managed vault that seeks long-term growth for liquid capital in DAO and project treasuries. The vault does this by rebalancing between ETH and stablecoin derivatives while maintaining low risk and optimizing stable growth. Stable growth strategies are defined as strategies that aim to consistently generate low double-digit APY across market cycles.

The vault targets a 60/40 portfolio allocation that consists of:

  1. 60% ETH and ETH derivatives with a target APY of 3–5%
  2. 40% income-generating stablecoins with a target APY of 5–12%

With Ex-ETH V1, teams, projects, and DAOs can rest assured that their capital will be allocated productively, tackling future operational and capital expenditures that will come their way — thus enabling them to focus on their core competency without the need to manage assets themselves.

Click here for the Ex-ETH Vault Factsheet

Being a DAO ourselves, we will be one of the first teams to keep our treasury assets in Ex-ETH. Our strategists have already started working on future products, services, and strategies that will change the future of DAO capital allocation. This is only the beginning, anon.

What’s Next? 🦊 🥽

The Vault mainnet Beta is live and accepting deposits. We will start rebalancing the vault by the end of this week.

Over the next few months, you can expect to see new vaults and strategies being added, along with DAO-related activities to build up capital allocator communities.

To learn more about how you can get involved and take part in our community, join our Discord: https://discord.gg/43jv3UKUeK

If you are an NFT project, investment DAO, or early-stage crypto startup, we would love to talk to you and see how we can work together! Contact us at contact@exponent.ai or DM us on Twitter @Exponent_cx

--

--

Exponent

Exponent is a decentralized Capital-as-a-Service (CaaS) protocol enabling Web3 organizations to grow, monitor, and manage the risks of their idle crypto capital