BNC BLUE-CHIP DEFI ETP PRODUCT BROCHURE as of 24 February 2021
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BNC Blue-Chip DeFi ETP is a physical representation of the BNC Blue-Chip DeFi Index, issued on Balancer Protocol.
The ETP mimics the constitution and weights of the index.
The ETP is rebalanced in alignment with the index, providing traders an opportunity to get non-synthetic exposure to the assets that are made up of the index, and/or speculate on arbitrage between the price parity of the index-powered perpetual swaps and the spot market for ETP.
● Non-custodial
● No lock-ups
● No front/back loads
● Free redemption anytime
● 24/7 NAV
● NO FEES FOR V1
BNC BLUE-CHIP DEFI ETP
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BNC BLUE-CHIP DEFI ETP CONSTITUENTS
The exact constituents and weights can be viewed on our web-site.
BNC Blue-Chip DeFi ETP (Exchange Traded Portfolio) is a physical representation of the BNC Blue-Chip DeFi Index, issued on Balancer Protocol. The ETP mimics the constitution and weights of the index. It is rebalanced in alignment with the index, providing traders an opportunity to get non-synthetic exposure to the assets that are made up of the index, and/or speculate on arbitrage between the price parity of the index-powered perpetual swaps and the spot market for ETP.
BNC Blue-Chip DeFi Index tracks the real-time market performance of the largest DeFi assets. Launched in September 2020, this institutional-grade index product is the first in the world to track DeFi assets across multiple pricing sources, at sub second frequency. The index has a maximum basket size of 8 assets and is rebalanced quarterly based on a free float market capitalization weighting with a cap of 25%.
Thesis. Decentralised Finance (DeFi) is an open-source and transparent financial service ecosystem that represents a broad category of applications built on decentralised networks. DeFi leverages decentralised networks to transform legacy banking services and financial products into trustless and transparent protocols that can run without intermediaries. Some of these products and services include decentralised marketplaces & exchanges, asset issuance, insurance, checking accounts, investment services, borrowing and lending, asset management and prediction markets.BNC Blue-Chip DeFi ETP is exactly like the index, but physically holds onto the underlying assets in a non-custodial way, powered by Balancer.
SUMMARY
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Ticker BBDX-ETP
Inception Date TBC
Index Base BNC Blue-Chip DeFi Index
Constituent Amount 8
Weighting Method Free-Float Market Capitalisation with a 25% Cap
Rebalancing Period Quarterly
Platform Balancer Protocol v1
Blockchain Ethereum
Strategy Passive
Index Methodology Link
The Brave New Coin Oversight Governance Committee is responsible for the oversight and
transparency of the Index governance structure as well as all aspects relating to the provision of
benchmarks administered by Brave New Coin Ltd.
Investor Exchange-Traded Portfolio
Adds asset(s)
The Index Committee reviews index constituents
and weights quarterly.
TCap executes rebalancing based on
directives from the index the committee, aligning the ETP assets & weights
to those of the Index. TCap cannot access the
underlying assets.
Withdraw anytime back to a preferred asset
Index Operator
VALUE FLOW
Product Manager
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Investor can mitigate technical risk by obtaining
a smart contract cover from Nexus Mutual or
Unslashed Finance
Smart Contract Cover
Smart Contract Cover
Powered by Balancer, an Ethereum-based liquidity pool and asset management platform.
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Exchange-Traded Portfolios are a weighted and indexed representation of DeFi tokens.
Underlying. Each ETP is a passive portfolio that holds a weighted basket of physical tokens.
Constituents are selected, bundled and weighted according to the IOSCO-compliant methodology, designed by BraveNewCoin.
Primary Issuance. ETPs are issued on Balancer Protocol.
Secondary Trading. When listed ETPs shares can be traded on AMMs, DEXs, and CEXs.
Perpetual Swaps that track the exact same indices are also available on selected DEXs and CEXs.
ETPs
Brave New Coin’s MethodologyAligned with IOSCO Principles for Financial Benchmarks
Constituent Qualification & Weight Assignment
HFT Calculation;Asset Pricing
PRODUCT TREE: INDEX + ETP
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ETPprimary issuance on
Balancer Protocol
Spot Trading & Money Market
on DEXs & CEXs
Index (not traded)data feed display on
www.BNC.com
Perpetual Swapson DEXs & CEXs
Reconstitution & Rebalancing
Governance & Corporate Actions
Primary Issuance takes place on Balancer. A deposit is made to a portfolio of assets via either multiple or single assets deposit. Upon deposit, a tokenised unit of the portfolio is credited to your wallet, representing your pro-rata ownership claim on the underlying.
ETP MANAGEMENT
Review of Constituents Weights is done monthly by the BNC Index committee.
Constant-Proportion Portfolio Insurance (CPPI). Upon review, the committee discretionarily decides on which tokens to sell assets as they fall, and which to buy as they rise. Reason being is that in the longer-run, the market diverts widely from the entry point, i.e. depreciate or appreciate greatly.
Dynamic Rebalancing for this ETP is turned off, so not to run the Constant-Mix Strategy as in typical Balancer portfolios. The index-tracked market is not considered as a mean-reverting market.
HOW ETPs WORK 1/3
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Powered by Balancer
Extra Yield
Each ETP generates additional yield via swapping fees and liquidity mining rewards/subsidies (e.g. $BAL token).
24/7 Reporting
Balancer allows for real-time tracking of the ETP’s performance - including full visibility over the current weighting and size of each assets, total trading volume done by the ETP, executed transactions, current holders and their stake, liquidity etc.
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BNC Blue-Chip DeFi ETP
BNC Maker Vault ETPHOW ETPs WORK 2/3
Powered by Balancer
Deposits and Withdrawals
Deposit and withdrawals from the ETP can be made either via multi-assets or a single-asset.
In case of a single-asset deposit, Balancer will exchange your asset on pro-rata basis to match the underlying basket.
Tokenised Shares of the ETP
Each ETP is wrapped into an ERC-20 token, which represent your pro-rata share of exposure to the underlying (think: direct ownership of your share in a portfolio). This token is issued to the investor and can be used on secondary markets (trading, borrow & lending, etc).
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Remove Deposit from BNC Blue-Chip DeFi ETP
Add Deposit to BNC Blue-Chip DeFi ETP
HOW ETPs WORK 3/3
Powered by Balancer
PAY WITH CRYPTO
PAY WITH FIAT
DEPOSIT TO A GIVEN
ADDRESS
OUR OTC DESK
CONDUCTS FIAT to
CRYPTO CONVERSION
DEPOSIT
REQUEST WITHDRAW
TCAPCUSTODY
PAY WITH CRYPTO
Connect Wallet
DEPOSIT WITHDRAW
SELFCUSTODY
● Flexible custody.Choose between self-custody and delegating keys management to Techemy Capital.
● Instant crypto transactions.Deposit and withdraw by connecting your wallet (whitelisted during KYC).
● Assisted fiat transactions.Deposit and withdraw with fiat via Techemy Capital’s OTC desk.
● Flexible redemption.Withdraw your funds anytime - no maturity.
PAYMENTS PROCESSING
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Inception TBA
Denomination / Benchmark USD
High Water Mark Yes
Custody Self-custodial (traditional custody available upon request)
Investor Profile Wholesale & accredited investors
Minimum Investment US $10,000 (recommended*)
Maturity Open-ended
Investment Management Index-based, passive
Subscription Subscribe instantly at anytime
Redemption Withdraw instantly at anytime, no lock-ups
Fees ● Management fee - nil on v1 ● Performance fee - nil on v1● Entrance/exit - nil on v1● Fees for v2 TBA (v1 to v2 migration will be optional)● Back/front load - nil● Network (gas) fees - self-service / paid directly by the investor*.
TCap’s Structured DeFi: Term Sheet
BNC BLUE-CHIP DEFI ETP: FACT SHEET
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*Note: Gas fees are an independent variable of the Ethereum network, determined by the network usage at the time of the transaction. Gas fees are reflective of the complexity of smart contracts that the transaction is interacting with. However, network fees DO NOT depend of the size of the transaction in the sense that $1-dollar transfer typically costs as
much as $1 million-dollar transfer. Therefore, it might make smaller-size transfers economically inexpedient to execute.
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TRACK RECORDP.O.C. DEFI PORTFOLIO 1.0
The investment strategy is based on years of in-house proprietary trading experience from the very onset of the crypto markets.
During 2020, we ran our first private Proof-of-Concept DeFI Fund, which subsequently was closed ~410% ROI.
DEFI PROTOCOLS USED
CompoundLending/Borrowing
Platform
AAVELending/Borrowing
Platform
UniswapAutomated Market
Maker
Curve FinanceAutomated Market
Maker
yEarn FinanceAutomated Yield
Aggregator
StakedAutomated Yield
Aggregator
TokenSetAutomated
Asset Manager
Nexus MutualDiscretionary
Cover
dYdXLending/Borrowing
Platform
mStableAutomated Market
Maker
ZapperPortfolio Manager &
Execution
BalancerAutomated Market
Maker
Mooniswap
MooniswapAutomated Market
Maker
1inch ExchangeDEX
Aggregator
Metric ExchangeLimit Orders
DEX Aggregator
xDAI ChainStablecoin Payments
AkropolisDecentralised
Banking
xDAI Chain
BUILD DAODecentralised
Venture Builder
UMAProtocol for Building
Synthetic Assets
FUND DESIGN HEDGE
68%of principle is insured
Nexus Mutual, a mutual discretionary, provides
insurance-like cover against technical failure of smart contracts for
funds deployed in DeFi.
ASSET HOLDINGS
POC DEFI PORTFOLIO 1.0: OVERVIEW
85%
YIELD GENERATION
in Stablecoins
in Volatile Assets
12 MonthsMaturity.
Closed-Ended
10%Target RoR
GP/LPStructure
31 Jan2020
Inception
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Digital Assets
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DeFi Protocols
15%
via money markets (lending yield)
2%
via market making (share of fees)
via hybrid strategies
via staking
DAI USDT
USDC TUSD
uUSD
22%YIELD
10%9%
Build Finance
BAL MTA
KNCAAVEETH
JRTUMA
STAKE OMGLRC
YFI REN
CRV MLN BUILD
METRICDARKSNX
L2 APY
NET ASSET VALUATION
CAPITALGAIN
YIELD GAIN
WINDFALLGAIN
BENCHMARKING
+411.3%10-Month Gain
NAV
POC DEFI PORTFOLIO 1.0: PERFORMANCE
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395.4%Appreciation of Volatile Assets
23.5%EAR Actualised on
Yield-Bearing Assets
7.3%Hedging, FX, &
IncentivesTraditional Markets Crypto Markets
BTC Portfolio Performance
TRADING TRACK RECORD
ETH Portfolio Performance
During 2020, we also ran our first investable and non-custodial trading portfolios on TokenSets decentralised platform. Below are performance snapshots:
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$5,000,000,000,000
Stablecoins
Decentralised Exchanges (DEXs) & Aggregators
Lending & Borrowing
Automated Market Makers (AMMs)
Derivatives & NFTs
Layer 2 & Cross-Chain, Real World Assets
Data Source: DeFi Pulse Analysis: BraveNewCoin & Techemy Capital
$5 TRILLION CASE FOR DEFI
1 Jan 2022
Decentralised Finance (DeFi), aka Open Finance, is an ecosystem of blockchain-powered applications that are recreating common trading instruments from traditional finance. Run by programmable algorithmic code, DeFi removes middlemen, connecting principals directly. DeFi reduces friction and capital inefficiency, hence offering the possibility of higher yields. DeFi money markets offer instruments that can provide lower risk profiles and greater liquidity.
How is it Different from Traditional Finance? DeFi is a self-running, self-adjusting peer-to-peer market based on data-driven automation and open access. DeFi eliminates a need for an intermediary, hence eliminating traditional bottlenecks such as central and commercial banks, brokers, clearing houses, etc.
Software replaces intermediary to ensure
transactions validity and assets storage. At all time you are in control of your
funds, not the bank.
NON-CUSTODIAL Anyone with Internet can
access the systems. Anyone can audit and verify the code and the
asset ledger.
PERMISSIONLESS
Plug & play architecture. DeFi apps are created and
combined at a very low cost.
PROGRAMMABLEBlockchains are
transparent and auditable. Anyone can check
transaction history and see where the funds are.
TRANSPARENT
WHAT IS “DEFI”?
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How Big is the Opportunity?What is the Economic Benefit?
There’s no central party controlling how and who can use DeFi apps, hence no rent-reeking. With no barriers to trade, the market is truly free and evolves rapidly.
All fees and yield are distributed between DeFi market participants: buyers & sellers, borrowers & lenders, market makers & liquidators, etc. Each party is incentivised to be a good actor via revenue sharing and penalised for bad behavior (e.g. liquidation fees, slashing).
No fractional reserve, no money printing. DeFi is measured by the value and the quality of the collateral that is deposited in the ecosystem. Collateral is currently represented by digital assets such as ETH, BTC, USDC, etc, but the mid-term goal is to use real-world assets, expressed in a digital format (i.e. tokenised).
DEFI IS A NATURAL EVOLUTION OF FINANCIAL SYSTEMS
DeFi is growing fast with the total value of the ecosystem currently sitting at around $25Bil as of Jan 2021 .
It is expected to reach $200Bil by YE’21, and $1Tril by 2022.
WHY “DEFI”?
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A BESPOKE DIGITAL ASSET INVESTMENT FIRM
Exquisite financial & technology solutions for professional investors: funds management, OTC, yield-optimisation, investment intelligence.
Deep industry knowledge, experience, and proven capability since 2013.
Techemy Capital Limited is a boutique investment management company focused on management of digital assets. We seek to provide clear, well researched and leading edge investment opportunities to fund managers and institutional investors.
Techemy Capital Limited is an authorised Financial Services Provider to wholesale investors under New Zealand law.
COMPANY
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Bespoke Services
● Compliant on- and off-ramps;● Wallet and private keys management;● Custody and treasury management;● Assistance with purchasing smart contract cover.
DeFi Products
✔ Investable portfolios with both active and passive management;
✔ Structured DeFi products;✔ Bespoke yield-bearing financial
instruments.
OTC Trading
✔ Over-the-Counter trading for accredited investors;
✔ Multiple fiat currencies;✔ Liquidity pool collaboration.
Prop Trading & Arbitrage
✔ T.A. / Fundamental / Algo trading;✔ Models applied across all crypto
markets;✔ Trading strategies & analysis.
We leverage a number of DeFi protocols to offer an array of financial instruments to meet the needs of professional money managers and sophisticated investors.
PRODUCTS & SERVICES
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Fran StrajnarExecutive Director
A multi-disciplined entrepreneur and blockchain evangelist, Fran co-founded Techemy and Brave New Coin and has been deeply involved in the cryptocurrency and blockchain communities from their earliest days. Describing his mission in life as “terraforming the crypto asset landscape” he is a sought-after industry thought leader and subject matter expert.
Matthew PagetGroup COO
A barrister and solicitor since 1992, Matt’s experience spans banking, finance, and corporate law. He has held senior positions at Norton Rose London, HSBC London, Deutsche Bank Sydney as well as various private equity and fund management organisations. He has specific expertise in derivatives and structured products, mergers and acquisitions, private equity and venture funding.
Michael Carr-SmithAdviser
Michael has over 25 years of experience in investment banking, capital markets and international equities, most of that while working in New York City with the likes of JPM, Barclays, and Deutsche. Michael provides consulting and advisory around investment and risk management for Techemy Capital.
Rob BrewisAdviser
An experienced commodities trader in both physical and derivative products over a 25 year career, including Enron, Shell, Vitol, and Managing Director of JP Morgan (Asia) and Sempra. Rob is managing Techemy Capital's trading team, ensuring the development and growth of the trading business.
Josh OlszewiczTrader / Portfolio Manager
An early crypto adopter, Josh is a recognised expert in technical analysis. Josh evaluates trading algorithms and executes Techemy Capital’s trading strategies, buying and selling digital assets, margin and option trading, and hedging the proprietary treasury. Josh also conducts regular fundamental and technical analysis for price forecasts and market sentiment.
Jason WoodHead of Compliance & Audit
Jason oversees the compliance function, ensuring that Techemy Capital adheres to regulatory requirements associated with Anti-Money Laundering and Countering Financing of Terrorism. Jason is responsible for ensuring that we have processes in place to adequately perform customer due diligence as required.
Michelle TehGroup CFO
A qualified Chartered Accountant, Michelle works alongside the CEO office and the Board to provide support in the areas of financial control, cashflow, taxation, audit, and corporate governance. Previously, Michelle worked as Group Head of Finance at Velocity Made Good, and Finance Manager at Rocket Lab, and KPMG.
TEAM
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Donn KrassiyenkoHead of DeFi Products
An analyst with a 12-year track record in technology markets incl. cloud and cybersecurity, Focusing on opportunities presented by digital assets, Donn develops and executes strategies to support investment activity and engineering of DeFi-based financial instruments. Donn holds an MBA and other qualifications majoring in finance and international business.
Paul SalisburyTechnical Lead
With a background in Enterprise software projects in FinTech, Paul intersects blockchain expertise with his understanding of the business, commercial, and regulatory needs of projects. Resulting from his work with Blockchain technologies over the past 7 years, he co-founded BlockchainLabs, is on the advisory board of several startups, and is Chief Blockchain Officer for Techemy Group.
PARTNERS
Decentralised Lending & Borrowing Platform
Decentralised Mutual Discretionary Cover for
Smart ContractsOn-chain Data Analytics
Platform
Decentralised Exchange Aggregator
Decentralised Liquidity Pool & Asset Management
Platform
Decentralised Leveraged Exchange / Gluon Plasma
Sidechain
Smart Contact Audit & Development
Digital Asset Exchange
Decentralised Fund Management Infrastructure
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Decentralised Staking and Liquidity Wrapper
Market Data, Research & Indices Provider
Decentralised Insurance-like Cover for Smart Contracts
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This presentation contains information, ideas and analysis which are proprietary to Techemy Capital Limited (“Techemy” or the “Company”). By agreeing to receive this information you also agree to respect the confidential nature of this entire presentation. Specifically you agree not to reproduce in any manner any part of the information contained herein without our prior written consent. This presentation has been prepared by and issued by Techemy to assist in informing interested parties about potential participation in DeFi products. It should not be considered as an offer or invitation to subscribe for or purchase any securities or financial products in any entity or fund or as an inducement to make an offer or invitation with respect to securities or financial products. This presentation is intended for distribution to wholesale or accredited investors only.
This presentation may contain forward looking statements. Whilst Techemy has no reason to believe that any such statements are either false, misleading or incorrect, it cannot and does not warrant or guarantee that through either the passage of time or actions beyond the control of Techemy they will not become so. You should not act and you must refrain from acting in reliance on any of this presentation material. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview does not purport to be all inclusive or to contain all information, which its recipients may require in order to make an informed assessment of Defi or crypto assets.
Neither the Company nor its advisers has verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company make no representation and give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions, from any information, statement or opinion contained in this presentation.
DISCLAIMER
FRAN STRAJNARCEO, Techemy Group
DONN KRASSIYENKOHead of DeFi [email protected]
TECHEMY CAPITALwww.techemy.capital
PO Box 90497, Victoria St West, Auckland Central, 1010, New Zealand
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