CP110: (POP) Anemoy DeFi Yield Fund 1

cp: 110
title: POP Anemoy DeFi Yield Fund 1
author: martin
uses-component: CP5
technical-proposal: yes
requires-onchain: yes
status: rfc
date-proposed: 2024-05-13
date-ended:

tl;dr The Anemoy Defi Yield Fund 1 Pool Onboarding Proposal (POP) for onboarding on Centrifuge through Centrifuge Governance. The POP process is outlined here.

Overview

  • Business Name:
    • Anemoy Capital SPC Limited, a fully-owned subsidiary of Anemoy Limited
  • Current AUM:
    • $10M
  • $ Volume of Transactions Completed Last 12 months:
    • +50
  • Target Launch Date:
    • Planned to open for investments on May 27, 2024, with first capital deployed in underlying funds on June 1, 2024
  • Location and Team Size:
    • British Virgin Islands (“BVI”), 6
  • Years in Operation:
    • Anemoy Limited (“Anemoy”, based on the Anemoi, the Greek wind gods) is a de novo asset management company launching its second product, the Anemoy Defi Yield Fund 1 (the “Fund”) through its British Virgin Islands wholly-owned subsidiary Anemoy Capital SPC Limited.
    • The Fund is a BVI professional fund regulated and approved by the British Virgin Islands Financial Services Commission, for which the shares of the fund are issued in tokenized form under BVI law
    • The directors and team members (“Team”) are finance, fintech, startup, and crypto veterans with a combined experience of 50+ years
    • Martin Quensel (Linkedin)
      • Serial entrepreneur; Co-founded Centrifuge; Startup before co-founding Centrifuge was the Fintech Taulia, which was revolutionizing Supply Chain Finance, finally acquired by SAP; Invented with the Centrifuge team the idea of “real-world assets” (or “RWA”) as the now fastest growing space in decentralized finance (“DeFi”)
      • Co-founder and CEO of Anemoy
      • Director of Anemoy (BVI) Management Ltd.
    • Jason Meads (Linkedin)
      • Private equity specialist who has worked closely with Patron Capital since 2002 and is now on the board of funds; Also director of Intriva Capital Management who is also highly active in the real estate private equity space in Europe; served on the board of Binance (Jersey) for 3 years; Runs the Special Situations desk at the Blue Marine Foundation; Further expertise includes blockchain, ocean protection, and climate change
      • Director of Anemoy (BVI) Management Ltd
  • Historical Loan Tape (years):
    • n/a
  • Key Professional Partners (legal, accounting, operational, technical, structuring):
    • The Team is working with world class partners for the on- and offchain parts of the fund structure and processes. It is using state of the art crypto and cybersecurity tools to protect clients and their underlying assets. The Anemoy DeFi Yield Fund holds the underlying fund participations. Trident Trust provides the fund admin and middle office service. MHA Cayman is the fund auditor. Leftover cash will be held at First Citizens Bank, covered by Federal Deposit Insurance Corporation (FDIC) for cash assets.
    • Research team
      • Lead by Martin Quensel, industry veterans Sanat Rao and Colin Rix acting as advisors to select and supervise the underlying funds
    • Legal and ops
      • There are dedicated legal and operational resources to guarantee timely and professional fund services
    • Fund admininisration
      • Trident Trust, a top tier professional fund administrator in the BVI is the licensed funds administrator doing investor onboarding, accounting, and NAV calculation.
      • In addition Trident Trust provides middle office services for the AUM (the underlying fund participations). They are responsible for the correct execution of investment and redemption transactions with the underlying funds and do all the accounting including the asset side.
    • Fund audit
      • The BVI licensed Fund Auditor MHA Cayman is a specialist provider of audit services to the asset management industry, and has offices in London and the BVI. Anemoy works with MHA Cayman to provide annual audits to investors.
    • Legal Counsel
      • Ogier Advises Anemoy on BVI law issues and has prepared offer documents, corporate constitutional documentation and internal policies.
    • First underlying funds
      • Anemoy will start with two funds - those of Re7 Capital and Dialectic - and will further diversify to up to ten funds as the fund grows. The limitations of the underlying funds mean such a diversified portfolio can’t occur right from the start. For example, minimum investment sizes/redemptions make it impossible to support ten funds from day one. Anemoy has already selected and is in conversations with the next group of funds.
    • This POP does not require further off-chain service providers considering the focus on decentralized institutional investors like decentralized autonomous organizations (“DAOs”) and their respective treasuries, which have the capability to self-custody tokens

Strategy

Business

  • Describe your business and go to market strategy.
    • What makes your approach unique within your industry?
      • Anemoy is creating unique onchain investment opportunities tailored to investors with stablcoins who want to diversify their investments and do not want to make is solely relying on crypto yield or give investors new investment capabilities in form of a token.
      • Based on that strategy Anemoy is starting to offering with different liquidity and risk-adjusted return profiles starting with
        • High liquidity + low risk = LTF (Liquid Treasury Fund)
        • Med liquidity + medium risk = DYF (DeFi Yield Fund)
    • Why are you a good partner for Centrifuge?
      • Anemoy is a web3 native asset manager built on Centrifuge. Each $ of Anemoy AUM is Centrifuge TVL.
    • How do you differentiate yourself from competitors?
      • Legal framework
        • The Anemoy DeFi Yield Fund (DYF) is a regulated, fully onchain fund of funds for direct access to DeFi yields through centralized asset managers. The fund is approved and regulated by the BVI Financial Services Commission (BVI FSC).
        • This is one of the few setups where the token itself if the security including offchain redemption, recourse and claims. Also a reason why Blackrock is using it for its $BUIDL token.
      • Centrifuge
        • NFT and on-chain transparency support for single asset holdings
          • Similar to LTF, where every T-bill Cusip holding is an NFT, DYF will use the Centrifuge NFTs to account for the held underlying fund shares.
      • Multichain support
        • Like LTF, DYF will be deployed on every chain where investors would like to invest and which is supported by Centrifuge.
      • Centrifuge chain
        • The Centrifuge chain is our App Chain for asset and fund management.
  • How is your entity financed today, what are the current sources of capital:
    • Equity raised: n/a
    • Debt raised: n/a
  • What is your entity’s revenue/fee model:
    • Origination fees: n/a
    • Target spread: n/a
    • Other: 1% management fee (see forthcoming offering materials for details)

Capital

  • Please explain the source(s) of, and ability to scale, your first-loss junior (TIN) capital in the pool:
    • Single tranche model without Junior and Senior tranches. The Fund of Funds nature of the underlying asset - fund shares of the underlying funds - does not require tranching or any further securitization.
  • Please explain the source(s) of, and ability to scale, your senior (DROP) capital in the pool:
    • N/A
  • Capital relationships and how much you will bring through Centrifuge KYC to invest in either senior or junior tranche of your pool:
    • Anemoy has a robust network of DeFi and TradFi capital providers. Additional information can be shared with interested parties at the sole discretion of Anemoy and bound by non-disclosure agreement (“NDA”)

DeFi

  • Outline why DeFi is important to your business strategy:
    • The core of this pool will be its focus on investing in a diversified bag of DeFi investment strategies.
    • Additionally, as mentioned above, an essential component of Anemoy’s broader strategy relies on providing superior risk-adjusted returns via DeFi. There is no Anemoy offering that is not tokenized and managed using DeFi at present, nor are any 100% off-chain products presently being contemplated by the Team
  • Articulate why Centrifuge’s community and protocol is a fit for financing:
    • As mentioned above, Anemoy will use Centrifuge as the tokenization platform, which is an essential component for facilitating the Fund. It is anticipated that clients and partners of the Fund will be or are already part of the Centrifuge community

Structure: Risk & Terms

  • Please explain the key risks inherent in this opportunity and asset class:

  • Pool Size & Pipeline:

    • At Launch: $1M
    • 6 Months after Launch: $30M
    • 12 Months after Launch: $100M
    • Origination Pipeline Details:
      • Strong pipeline
      • Already $1M hard committed a launch
      • Interest also from traditional investors being interested in DeFi yield opportunities
  • Asset & Rates:

    • Asset Type(s):
      • n/a
    • Average Ticket Size:
      • n/a
    • Average Asset Maturity:
      • n/a
    • Expect Default Rate:
      • n/a
    • Expected borrowing rate on senior tranche (on-chain):
      • n/a
    • Expected lending rate to end borrower (off-chain):
      • n/a

Update: 5/20/2024:
Proposal submitted and merged on GitHub: CP110

8 Likes

Good day, Community! :wave:

The proposal was submitted and merged on Github and it’s a final now.

Anemoy DeFi Yield Fund 1
Proposal Type: CP5
Proposal on GitHub: CP110
The pre-image hash:
0x209f80b98530c3545896f2f152bfe8eb0eec869a4f078de1ffdc9aaf4f850cec

List of content of this proposal

In accordance with the POP) Anemoy DeFi Yield Fund 1 and CP5 the Centrifuge Council initiated a motion for Pool onboarding Anemoy DeFi Yield Fund 1.

Councillors, please vote at your earliest convenience on Council Motion 89.

:ballot_box: Vote in the portal: Polkadot/Substrate Portal

:ballot_box: Vote on SubSquare: CP110: (POP) Anemoy DeFi Yield Fund 1

Duration: 43,200 blocks ( ~ 6 days)

Once the motion to fast-track the proposal has passed, the proposal will become a referendum, that all token holders can vote on, using their CFG tokens. The referendum will be open for people to vote on for 43,200 blocks (~6 days with an average block time of 12 sec).

@cassidy @thespaceacatjr @prankstr25 @lucasvo @mikiquantum @Ash @vedhavyas