Recently, a community member brought up fee structures, mentioning that TradFi funds are starting a race to the bottom, descending from the 2/20 (2% AUM, 20% performance) model.
Let's discuss the reasons we don't care, and aren't tying ourselves to TradFi structures.
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@juliankoh @phitsoaster @FroyoFren@FreddieRaynolds@ribbonfinance@inversebrah How are you going to hire a competent "head of trading" to create new products/strategies AND lead a team for less than a junior banker makes for doing PowerPoints and basic modeling?
@ylv_io@FroyoFren@ribbonfinance The projected yield is literally just ((weekly premium sold / vault TVL) + 1))^52
In other words, the weekly yield *if* the options sold expire OTM, annualized.
The APYs that Jones displays are based on genuine historical vault performance, not meaningless projections. We'll always be transparent on performance, and we're working on UI improvements like live vault PnL to continue delivering on that commitment.
Stay safe out there anons. Almost every protocol offering "structured products" is selling you misleading APYs when underneath the hood you're getting rekt.
Their strategies aren't "complicated," they're just selling close to the money weeklies OTC for weak premium.
Neat trick, @ribbonfinance
ETH vault projected yield 30% while historical performance -20%.
BTC projected yield 23%, reality almost -6%.
If you're having trouble trading options on your own, try depositing in a Jones Vault.
@paradigm and @coinbase should ask @juliankoh why he's building his TVL on the back of a purposefully misleading UI, and how he thinks he's going to find someone to deliver on his promises to investors for <$250k/year.
Stay safe out there anons, not everyone in the on-chain derivatives space is being honest about their productβs risks.
Hereβs what @AtlasCrypt0 and @FroyoFren have been keeping an eye on.
So back to fees. If we're not going to tie ourselves to traditional models, how will they be determined?
Supply and demand anon. There will be an equilibrium point between jAsset yields and veJONES fees. Weβll find it, and continuously monitor it, because it wonβt be static. ποΈπ§
Recently, a community member brought up fee structures, mentioning that TradFi funds are starting a race to the bottom, descending from the 2/20 (2% AUM, 20% performance) model.
Let's discuss the reasons we don't care, and aren't tying ourselves to TradFi structures.
π§΅
πͺπ°Can you accumulate governance power and a share of fee revenues from a hedge fund (veJONES)? Hell no.
I think you get the picture now anons. We're here to build. We're here to create novel products, and to do existing products better.