# Castle finance --- ### Yearn for DAOs - DAOs need to manage their treasuries and pay for expenses - overwhelmingly governance tokens - move a part of it to stables - earn yield on that stables --- ### How? Vaults - risk managed - only smart contract risk - diversification(?) - high yield vaults - (only stables) - solend/jet/port --- ### How? - DAOs can submit/withdraw their money at any time - Permissioned updates of weights by castle.finance team --- ### Weight submission - E[R] = R - EL - R - Return from interest rate curve of money market - EL - Expected loss - https://github.com/castle-finance/optimizer_math/blob/master/optimizer_math.ipynb - can rebalance every 60 seconds (!) --- ### More on rebalancing ```rust= /// Calculate and store optimal allocations to downstream lending markets pub fn handler(ctx: Context<Rebalance>, proposed_weights_arg: StrategyWeightsArg) -> ProgramResult { ``` ```rust= pub struct StrategyWeightsArg { solend: u16, port: u16, jet: u16, } ``` --- ### Fees - No reference in the docs, so code ```rust= pub struct VaultConfig { /// Basis points of the accrued interest that gets sent to the fee_receiver pub fee_carry_bps: u32, /// Basis points of the AUM that gets sent to the fee_receiver pub fee_mgmt_bps: u32, ``` --- ### Fees (contd) ```shell= $ ANCHOR_WALLET=~/keypairs/foo.json ts-node test/client.test.ts Initialized client { ... feeCarryBps: 0, feeMgmtBps: 0, referralFeePct: 0, allocationCapPct: 60, ... strategyType: { maxYield: {} }, padding: [ 0, 0, 0 ] } ``` --- ### Wen token? - no token as of now --- ### Huge focus on integration with DAOs - https://realms.today/realms (solana specific, create a DAO in 4 clicks) - voting (quorums) - multisigs - Protocols can add their custom actions (Iphone widgets) to DAOs created by realms --- ### Things we can learn - A client sdk to interact with vaults (not sure how relevant on Ethereum) - Seamless DAO integration - Relatively nice/professional UI --- ### Comments - We should focus more on "using offchain intelligence" part in our pitches - Bespoke/customized optimization functions for each DAO is our strength - The problem of decentralized weight updates is extremely difficult! --- # End ---