Yield App announced a partnership with Trovio Group, Asia Pacific’s leading hybrid asset manager and technology solutions architect, for the launch of the Trovio DeFi Fund.

The Trovio DeFi Fund offers wholesale investors the opportunity to allocate capital into a yield-generating strategy within the DeFi ecosystem.The investment vehicle is managed by Trovio’s asset management team in partnership with Yield App’s highly experienced DeFi risk management team.

The new investment vehicle has a strong focus on capital preservation, using proprietary sentiment capture and analysis tools, utilized by Yield App in its existing DeFi strategies, with the aim to protect the portfolio from market volatility.The fund is being launched with $35 million in capital.

Yield App’s DeFi risk model

Yield App’s DeFi team brings its existing expertise in risk management, along with our proprietary risk model, which has allowed us to weather the turbulent market conditions of the last few months.

The internal risk model focuses on five security assessment pillars (smart contract, platform, counterparty, financial and credit risk), using a sum of 135 measured variables compiled from historical data to analyze all aspects of risk exposure.This allows the fund to generate a universe of DeFi investment opportunities which then undergo rigorous risk analysis.

In addition, DeFi team uses an automated tool to capture and analyze social media and news sentiment to stay ahead of the curve.Compiling this carefully curated information has improved operational agility by predicting market saturation metrics, compensation decay, governance proposals, and more, well in advance.