Understanding the Mechanism
Enabling Secure, Sustainable Token Launches in DeFi
A key component of our system is its integration with Enzyme Finance, enabling the creation of decentralized vaults that represent the underlying portfolio, where the assets are securely managed. This integration facilitates on-chain asset management, providing issuers with a transparent and secure way to assign the management of the underlying portfolios to third parties without granting them the ability to withdraw the funds.
Enzyme Finance, launched in 2016 and managing over $200 million in assets, is a decentralized asset management platform that enables users to create and manage investment vaults entirely on-chain. These vaults function similarly to traditional investment funds, allowing for the construction of diversified portfolios with access to over 200 digital assets and integration with various DeFi services.
Enzyme supports multiple investment strategies to generate revenue, including swaps, lending, borrowing, staking, and liquidity provision, offering a comprehensive suite of opportunities to enhance the value of each vault. A key feature of Enzyme is its ability to enable secure and efficient on-chain asset management while allowing vault owners to delegate management to professional asset managers, optimizing vault performance.
Security remains a top priority, with audits conducted by reputable firms such as ChainSecurity and OpenZeppelin, and a $400,000 bounty on Immunefi to identify and address potential vulnerabilities.
This robust infrastructure has attracted a diverse user base, including asset managers, DAOs, and treasury managers, cementing Enzyme’s reputation as a trusted platform and driving its significant growth in assets under management. Enzyme integrates with dozens of leading DeFi protocols, offering an expanding universe of investment opportunities. This flexibility allows users to craft tailored portfolios while benefiting from the transparency and security of decentralized infrastructure.
Enzyme and IO Investment Integration
After defining the tokenomics of the token, issuers can seamlessly create a decentralized vault via the Enzyme protocol directly from the IO Investment platform interface. The process includes:
Setting Up a Decentralized Vault
Users start by setting up a decentralized vault on the platform, providing a secure and decentralized foundation for the underlying portfolio.
Defining the Underlying Asset
Once the vault is created, users define the list of assets and their corresponding percentages to be included in the underlying portfolio. The platform offers access to a universe of over 200 digital assets, ensuring diverse and flexible portfolio construction.
Defining the Investment Strategy
Selecting an investment strategy for the underlying portfolio to optimize revenue generation. Options include capital appreciation, staking, lending, or liquidity provision.
Assigning Asset Management
Delegating the vault’s portfolio management to a professional asset manager or opting to manage the assets independently, depending on the desired level of involvement and expertise.
This underlying portfolio, created through the integration with Enzyme and managed securely within the decentralized vault, is directly BOUND to the token via the BOUND Engine. This connection ensures that any profits generated by the portfolio are utilized to burn token supply, contributing to price stability.
Once the decentralized vault is created and funded, neither the token issuers nor the asset managers can withdraw the assets or funds, ensuring the token remains bound to its portfolio for life. This unbreakable connection between the token and its underlying assets significantly reduces the risk of failure and promotes sustainability.
Note We have partnered with a leading on-chain asset manager, offering issuers the option to delegate the entire process, from vault setup to portfolio management, ensuring a seamless and efficient experience. Alternatively, issuers can choose to handle each step individually based on their preferences. All services can be accessed and coordinated directly through our platform.
On-Chain Asset Management with Avantgarde Finance
To further enhance the performance and security of underlying assets, IO Investment has partnered with Avantgarde Finance, a leading on-chain asset management firm renowned for its expertise in crypto and DeFi investments. Established in 2018, Avantgarde Finance is a decentralized finance (DeFi) service provider specializing in on-chain asset management solutions.
As the core contributor to the Enzyme protocol, Avantgarde leverages its extensive experience in both traditional finance and DeFi to develop compliant, scalable investment products. The firm places a strong emphasis on security, conducting thorough audits and maintaining ISO-27001 certification to ensure the robust protection of assets.
Key highlights of Avantgarde Finance include:
The partnership between IO Investment and Avantgarde Finance brings unparalleled expertise and innovative solutions to token issuers, combining cutting-edge DeFi technology with proven asset management practices. This collaboration empowers issuers to optimize the performance and security of their underlying assets while ensuring compliance and scalability in an ever-evolving market.
Benefits for the token issuers:
• Select predefined investment strategies for managing the underlying assets in the vault or request fully customized strategies tailored to the specific goals of the portfolio.
• Gain full transparency into vault performance with real-time monitoring and auditable reporting, ensuring that asset management aligns with the project’s goals and builds trust with stakeholders.
• Ensure secure, compliant, and professional management of underlying assets to support long-term token stability and market confidence.
A Decentralized Approach to Value Creation
The integration of Enzyme Finance and Avantgarde Finance into the IO Investment ecosystem delivers a robust, secure, and value-driven token issuance framework. By bounding tokens to decentralized, professionally managed portfolios, IO Investment sets a new standard for the sustainability and long-term viability of utility tokens within the DeFi ecosystem.
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