The VMD empowers fund and asset managers to devise, set up, manage, and monitor their onchain positions effectively. This innovative system simplifies the DeFi investment process by eliminating the complexities associated with managing multiple positions across various protocols and platforms. Furthermore, the VMD accommodates both strategist and manager roles, enhancing operational flexibility and efficiency.

The VMD's reporting system is a cornerstone feature designed to offer comprehensive reporting capabilities that cater to the needs of vault managers, strategists, and stakeholders.

Bespoke Strategies

Strategies in SingularityDAO fall into two categories

Functional Strategies

Functional strategies are essentially vehicles that the vault manager can utilise to maximise the capital within a vault. These include:

• Yield Bearing Strategies: Interact with protocols such as Curve, Compound and Lido

• Derivatives Strategies: Make use of platforms like GMX and dYdX to optimise trades.

Vault Rebalancing Strategies

Vault rebalancing allows the vault manager to apply rebalancing logic based on specific events.

• Long Only Automation: Involves acquiring assets and holding them.

• Index Automation: Aim to replicate the performance of a specific market segment (DeFi, Metaverse, Meme coins, etc) represented by an index.

• Complex Quantitative Automation: These advanced algorithmic strategies rebalance capital within a DynaVault based on insights from analysing liquidity flows and market movements.

The preview for vaults in Q4 2024 will centre around the Index vaults, specifically focusing on the index of the SNET ecosystem token. A complete launch of these index vaults is scheduled for Q1 2025. Following this, yield vaults–both with and without strategies–will be introduced. This phased approach will allow for a structured rollout, ensuring that the initial index vaults are fully operational before expanding offerings to include various yield vaults.

The Risk Engine forms the backbone of SFI Vaults’ safety architecture, actively mitigating risks associated with DeFi investments. It continuously monitors key parameters to safeguard user funds against adverse events.

Key Metrics Monitored:

• Exit Liquidity Risk: Ensures sufficient reserve assets to manage withdrawal requests without triggering liquidations.

• Smart Contract Risk: Monitors for vulnerabilities or exploits within integrated protocols.

• Depegging Risk: Tracks asset prices against their expected value to avert losses.

Protective Actions:

• Dynamic Reallocation: Rebalances assets in response to liquidity trends or market volatility.

• Emergency Liquidation: Liquidates positions in a loss-minimising manner when predefined risk thresholds are breached.

• Capital Protection: Secures principal by optimising exit routes and preserving reserves.

Integration with VMD:

The system provides vault managers with real-time risk analytics and generates automated risk reports to support informed decision-making and strategy adjustments.

Unified Modeling of Zap Actions as Swaps: The zapper framework integrates seamlessly with the DynaRouterAPI, simplifying and optimising interactions with DeFi vaults and liquidity pools. It models deposits into vaults as a swap from contribution tokens to vault shares. The underlying vault zapper contracts facilitate the transparent exchange of contribution tokens into deposit tokens of the vault. Similarly, liquidity zapper contracts manage the addition or removal of liquidity using a single underlying AMM weighted pool token.

Predictable Cross-Protocol Optimal Routes:

By modelling all zap actions as swap actions, the router framework can select the optimal output amount by previewing vault share redemption against the preview of a swap of vault shares in a decentralised exchange. Fine Grained Access Control: For regulated tokens or closed beta launches, Singularity Finance has developed a TokenWhitelistRegistry that manages access to different token routers and zappers.

The Execution Engine acts as the operational backbone of SFI Vaults, facilitating the seamless execution of asset management strategies. It connects offchain logic with onchain execution, ensuring precision and reliability in trade execution. Trades are initiated offchain by either a human digital asset manager (DAM) or trading algorithm signals, which are activated by events and conditions derived from technical analysis tools or machine learning signals.

All current Vaults trades are handled by the execution server. Both DAM and trading algorithms can create custom trade orders, such as 'Spot' or 'Market If Touch' (MIT) orders, which the execution server validates and executes onchain. The execution server utilises onchain oracles to ensure accurate token pricing and verifies order matches with each new block.

Trading on Vaults occurs exclusively through the execution server.

The read-only endpoints of the execution server incorporate authentication layers using traditional methods. To modify any state on the server, such as creating or cancelling orders, an additional layer of authentication is required, utilising web3 signature authentication with only select authorised wallets.

Governance contract manages different authorization levels:

Governance: Can modify configured governance, management, and guardian roles, as well as add or remove tokens and strategies.

Management: Can manage the vault by swapping tokens and investing or liquidating strategies.

Guardian: Has the authority to place the vault into emergency shutdown mode, which sets all strategy weights to 0%, this will signal strategies to liquidate all investments back to the vault.

Each strategy will feature configurable fee parameters, allowing some to be set to zero while others maintain a minimum. The primary revenue sources include two types of fees:

Performance Fees are derived from the alpha generated by each DynaVault, incentivising effective strategies.

Management Fees are calculated as a percentage of the assets under management and are independent of the Vaults' profitability. These fees typically range from 1% to 2% annualised.

Keepers automate routine vault operations, such as reinvestment and rebalancing, ensuring operational efficiency.

The Router is a generic router that can register multiple routes, which can be registered The Router serves as a versatile tool that registers multiple routes for both onchain contracts and offchain swap execution engines. Users can enable or disable router registrations as needed. The Router's primary responsibility involves abstracting the preview of swapping underlying assets and executing swaps onchain based on offchain collected data. This functionality allows for more informed decision-making regarding swaps. Additionally, the Router can revert swap executions if the output amount deviates from the previewed amount by a configurable threshold, expressed in reference asset value.

• Unified API for Decentralised Applications, Smart Contracts and AI Agents: Singularity Finance has developed a single, standardised interface known as the “DynaRouterAPI” for interacting with various routers (decentralised exchanges) and zappers (tools for bundling complex token interactions).

• Secure Decentralised Router Comparison: This API standardises expected output amounts and slippage across multiple routers and zappers. It enables decentralised applications to perform multiple offchain queries to select the optimal router or zapper, ensuring slippage protection during onchain executions when entering or exiting tokenised positions.

• Reduced Cost of AI Decision-Making: AI agents responsible for managing portfolio rebalancing or executing strategies can easily interact with the API to move assets in and out of complex tokenised positions without the need for custom integrations for each protocol.

• Future Compatibility: The modular design of the generalised router framework allows for adaptability to new protocols and technologies without requiring significant changes. Users can utilise this API without concerns about future updates to routers or zappers, as the API guarantees backward compatibility and extensibility.

An oracle is a service that provides trusted price quotes based on price observations. Our Reference Asset Oracle framework registers a preferred oracle alongside several fallback oracles to ensure continuous and secure pricing in reference asset denominations.

• Asynchronously Updated Decentralised Oracle Networks: Singularity Finance typically employs asynchronously updated decentralised oracle networks as our preferred oracle. Networks like Chainlink aggregate data from multiple sources, reducing reliance on any single data provider. Asynchronous updates complicate price manipulation for attackers within short time windows.
• Manipulation Resistance: Our fallback oracles calculate the geometric mean of prices across multiple observation points in decentralised exchanges (AMMs) to avoid economic exploits using flash loan attacks. The geometric mean smooths out extreme values and minimises the impact of outliers, making it more resistant to manipulation.