Conservative Strategy
Capital-preservation focused yield. Tier 1 protocols only — maximum stability, minimum complexity.
Target APY
Target profile — validation pending. Not paper tracked. Variable APY, not guaranteed.
Risk Level
Tier 1 protocols only. No leverage, no looping, no Tier 2+ allocation.
Current Status
Who It's For
Allocators prioritising stability and capital preservation over yield optimisation.
Tier 1 protocols only. No looping, no leverage. Higher cash buffer. Stricter protocol eligibility. Validation pending — paper tracking has not started yet.
What's Inside
The Conservative strategy allocates exclusively to Tier 1 lending protocols — the highest TVL, most audited, longest-running DeFi lending markets. Higher cash buffer than Balanced.
Tier 1 Only — Primary Allocation
- Aave V3 (Ethereum) — ~3.5% APY
- Compound V3 (Comet USDC) — ~4.8% APY
- Spark sUSDS — ~5% APY
No Tier 2 or Tier 3 protocols. APY variable, not guaranteed.
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. Conservative strategy applies stricter constraints on top of the base policy.
| Parameter | Value | Effect |
|---|---|---|
| TVL floor | ≥ $5M | Pools below this threshold excluded |
| Tier restriction | T1 only | No Tier 2 or Tier 3 protocols |
| Per-protocol cap | 40% (T1) | Max allocation to any single Tier 1 protocol |
| Cash buffer | ≥ 5% | Always held in reserve |
| APY range | 1% – 30% | Positions outside range rejected |
| 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 |
Track Status
Conservative IS the evidenced paper-tracked book — the live go-live track (anchor June 22, 2026, ~3.3% realized so far). This is the tier the desk actually runs. All APY figures are variable, not guaranteed.
Strategy-Specific Risks
Even with Tier 1 only allocation, material risks remain. This strategy manages exposure within defined parameters but does not eliminate risk.
Smart Contract Risk
Protocol code may contain undiscovered vulnerabilities. Tier 1 protocols have multiple audits and years of operation, 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.
Protocol Insolvency
If a lending protocol becomes insolvent, depositors may lose funds. Per-protocol cap limits single-protocol exposure.
Oracle Risk
Price feeds may be delayed or manipulated. Strategy relies on DeFiLlama aggregated feeds for APY data.
APY Compression
Lending rates can drop significantly during low-demand periods. Target APY is not guaranteed and may materially underperform.
Liquidity Constraints
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)
At ≥5% peak-to-current equity drawdown (SOFT) the desk de-risks: it halts new entries and position increases, without liquidating. At ≥10% (HARD) the whole portfolio moves to 100% cash. This is non-overridable.
The kill switch limits further exposure after a drawdown event. It does not eliminate losses — it caps them.
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
Why Tier 1 only?
Tier 1 protocols (Aave, Compound, Spark) have the highest TVL, longest operating history, and most comprehensive audit coverage. Restricting to T1 sacrifices some yield for lower smart contract risk.
How does this differ from Balanced?
Balanced allocates to both Tier 1 and selected Tier 2 protocols for higher yield. Conservative is T1-only, with stricter eligibility and a higher effective cash buffer. Lower expected APY, lower risk profile.
When will paper tracking start?
Conservative is the live paper-tracked book — the go-live track. The 30-day evidenced track is accumulating toward go-live. The Balanced strategy is the current priority for paper track record validation.
Can I lose capital with this strategy?
Yes. All DeFi strategies carry material risk of capital loss. This strategy manages exposure within defined parameters but does not eliminate risk. See the risk section above.
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.
Start Your Due Diligence
Compare strategies, review risk parameters, and monitor the paper trading track record — all public and verifiable.
Contact: 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 →