Balanced Strategy
Systematic DeFi yield with a paper track record since June 2026. Deterministic risk-gated rebalancing across Tier 1 and selected Tier 2 protocols. Research / paper — shown WITH its tail, refused for live capital. The live evidenced go-live book is the Conservative tier.
Target APY Range
Variable APY, not guaranteed.
Risk Level
Uses Tier 1 + selected Tier 2 protocols. No leverage, no looping.
Current Status
Who It's For
Family offices and individual allocators seeking systematic, transparent DeFi yield.
Tier 1 + selected Tier 2 protocols. Deterministic risk-gated rebalancing. Research/paper — the evidenced June 22 track belongs to Conservative, not to this tier.
What's Inside
The Balanced strategy allocates across audited, high-TVL DeFi lending protocols. Rebalancing is triggered daily by the cycle runner and gated by RiskPolicy v1.0 — a deterministic, non-overridable risk engine.
Tier 1 — Primary
- Aave V3 (Ethereum) — ~3.5% APY
- Compound V3 (Comet USDC) — ~4.8% APY
- Morpho Steakhouse — ~6.5% APY
Tier 2 — Supplementary
- Morpho Blue USDC
- Yearn V3 USDC (ERC-4626)
- Euler V2 USDC (ERC-4626)
T2 total capped at 50% of portfolio (ADR-019)
Yield Sources
All yield comes from lending market interest rates. No governance token farming, no liquidity provision, no leverage.
What This Strategy Does NOT Do
Risk Controls — RiskPolicy v1.0
Every proposed allocation passes through a deterministic, hard-coded risk gate. No human, no AI, no strategy can override these parameters.
| Parameter | Value | Effect |
|---|---|---|
| TVL floor | ≥ $5M | Pools below this threshold are excluded |
| Per-protocol cap (T1) | 40% | Max allocation to any single T1 protocol |
| Per-protocol cap (T2) | 20% | Max allocation to any single T2 protocol |
| T2 total cap | ≤ 50% | All T2 protocols combined (ADR-019) |
| APY range | 1% – 30% | Positions outside range are rejected |
| Cash buffer | ≥ 5% | Always held in reserve |
| Kill switch — SOFT | ≥ 5% peak drawdown | De-risk: halt new entries & increases, no liquidation |
| Kill switch — HARD | ≥ 10% peak drawdown | Move whole portfolio to cash |
Performance & Validation Status
All performance data reflects paper trading on a virtual $100,000 USDT/USDC portfolio. Not indicative of future results.
All 29 criteria must pass and 30 evidenced track days must accumulate before live capital activation (ADR-002). Current blockers visible on dashboard.
Strategy-Specific Risks
Investing in DeFi protocols carries material risks. This strategy does not eliminate these risks — it manages exposure within defined parameters.
Smart Contract Risk
Protocol code may contain undiscovered vulnerabilities. We only allocate to protocols with multiple independent audits, but audits do not eliminate risk.
Stablecoin Depeg Risk
USDC or other stablecoins may temporarily or permanently lose their peg. The kill switch responds by tier: SOFT de-risk at ≥5% peak drawdown, HARD (all to cash) at ≥10%, regardless of cause.
Oracle Risk
Price feeds from oracles (Chainlink, Pyth) may be delayed or manipulated. The strategy relies on DeFiLlama aggregated feeds for APY data.
Liquidity Risk
In extreme market conditions, withdrawals from lending pools may be temporarily delayed if utilisation rates approach 100%.
Emergency Behavior
Two-Tier Kill Switch (Peak Drawdown)
The kill switch responds to peak-to-current equity drawdown. At ≥5% (SOFT) the desk halts new entries and any position increase (holds and reductions still allowed) and does NOT liquidate — this blocks further growth, it does not reduce exposure already open. At ≥10% (HARD) the whole portfolio moves to cash. This is non-overridable — no human, no AI, no strategy logic can prevent the trigger.
HARD is the last line of defense: it moves the whole portfolio to cash. SOFT does not reduce current exposure — it only blocks further growth. Neither tier eliminates losses already incurred.
Fee Structure
Fee structure is discussed individually during onboarding. High-water mark applies — no performance fee until the previous peak is recovered.
No fees during paper trading period.
Frequently Asked Questions
What is paper trading?
Paper trading runs the full strategy logic against live market data with a virtual $100,000 USDC portfolio. No real capital is deployed. All trades, risk decisions, and performance metrics are logged publicly.
When does live trading start?
Go-live: decision pending — 30-day gate passed (89/30), date not set. Activation requires all 29 GoLiveChecker criteria passing and 30 evidenced gap-free track-record days (gap_monitor), plus manual owner review (ADR-002).
Can the risk policy be overridden?
No. RiskPolicy v1.0 is a deterministic, hard-coded gate. The code explicitly
prevents any agent, strategy, or human from overriding an approved=False decision.
Changing parameters requires a new ADR and version snapshot.
What assets are supported?
USDT (TRC-20, ERC-20) and USDC (ERC-20). Entry through conversation — no public minimums or pool capacity limits.
What about withdrawals?
No lock-up. Standard processing T+1. Large or complex withdrawals may take up to 5 business days. No withdrawal fee.
Is KYC required?
No KYC required to view the site or dashboard. Identity verification is required before first deposit.
Can I switch strategies?
Yes. Strategy switch is allowed, T+1 standard processing. Manual/semi-automated in MVP.
Is there AI in the execution path?
No. The risk engine, execution layer, and monitoring systems contain zero LLM calls. Prompt injection into capital allocation is treated as a critical attack vector. AI is used only for analytics and advisory tasks that have no write access to positions.
What happens if a protocol gets exploited?
The kill switch responds by tier to peak portfolio drawdown: SOFT de-risk at ≥5%, HARD (all to cash) at ≥10%, regardless of cause. Per-protocol caps (40% T1 / 20% T2) limit single-protocol exposure. The TVL floor ($5M+) excludes smaller pools that are statistically more likely to be exploited.
Can I see the strategy logic?
Yes. The strategy methodology, risk parameters, adapter registry, and tournament evaluator are fully documented. Every change is tracked in git. The public dashboard shows live paper trading results.
Start Your Due Diligence
The dashboard is public. Every trade, every risk gate decision, every equity curve update — there for you to verify.
Contact for due diligence: via the request form on /pilot →
Personal research project in paper validation — not investment advice, not a regulated service, not raising capital; results are simulated. Full disclaimer & risk disclosure →