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@Dimensional_Cap is building independent verification of Vault backings
We will soon be releasing tracking information for
@Hyperwavefi
@hyperbeat
@kinetiq_xyz
We track the positions these vaults take and calculate an independent share price. By doing this users can verify that the vault is both:
1. Actually backed by positions
2. The yield they are generating is real
A hidden risk in vaults is that updating the share price of a vault is arbitrary. A vault which looses money doesn't look like its loosing money until it reflects that in its share price. Many vaults reprice using a watermark mechanism where they only reprice when they increase in value.
Our data will calculate a continual share price on all vaults and show comparisons between what we calculate and whats reported on-chain. This will expose any vaults which are not reporting losses in a timely manner
Our goal is cover all vaults and bring an independent source of data that users, funds and ideally everyone can use to compare vaults and understand the risks
Cain O'Sullivan@cainosullivan
The unfortunate reality is that Stream likely isn’t an isolated case. Over the past year, we’ve seen a steady rise in opaque “vault” strategies that thrive in risk-on environments where users look to amplify their yield. But when sentiment flips and markets turn risk-off, that’s when we finally learn what these vaults were actually doing with user funds.
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