💰Investing in Treasuries
Resources to get started as an Investor.
Last updated
Resources to get started as an Investor.
Last updated
By subscribing to a Treasury, tokenholders access below-market management fees, full transparency, complete investor control, and superior alpha potential. All Treasuries are structured similarly to traditional open-end mutual funds and are not traded on the market. Investors looking to subscribe to a Treasury send their contributions through the Daımon investor portal.
By contributing to a Treasury, investors interact directly with a smart contract that confirms the investment and automatically apportions the capital to the underlying asset allocation determined by the Management Castle at that given time. Similarly, upon redemption, the smart contract automatically redistributes the corresponding value of all the underlying assets to the investor.
In exchange for the initial investment, the investor receives a number of veTokens. Upon interaction, veTokens are instantly minted by the smart contract at the prevailing Net Asset Value (NAV) of the Treasury, which in turn is based on the portfolio's underlying on-chain asset price. Similarily, upon redemption, veTokens are burned and removed from circulation.
All veTokens are constituted by the non-fungible standard, representing the fully collateralised basket of underlying digital assets of each portfolio. The price of each veToken is given by an in-built on-chain pricing mechanism that divides the Net Asset Value of the Treasury (including liabilities) by the number of issued veTokens currently in circulation.
The price is given by the following formula, where TPx is the veToken price for Treasury X, NAVx is the Net Asset Value, Lx is the total number of liabilities owned, and CSx is the circulating supply (number of outstanding shares):
