1Summary
FARMARE splits capital 80 / 20. The 80% (Core, the safe base) sits in liquid stablecoin lending: it yields ~2.7% today, with no swings, withdrawable instantly. The 20% (Momentum, the extra-return engine) opens delta-neutral positions on new exchanges to harvest their future airdrops. The Core's interest — not the capital — gradually buys tokenized gold and S&P 500. The capital is never bet on the price of anything.
2The thesis
Most crypto strategies bet on price direction. FARMARE does not. The thesis is that a real return can be earned without directional exposure — from stablecoin lending and from harvesting airdrops on balanced positions — and that this yield can be used to build extra return without ever putting the capital at risk. It is a reinforced money market with free optionality, not a speculative fund.
3Structure
An 80 / 20 barbell, with a protected-capital extra return inside the 80%.
Core — 80%
Stablecoin lending on blue-chip, battle-tested protocols (such as Aave). It yields ~3.3–4.0% today, drawdown ~0, withdrawable instantly. No tokenized T-bills in v1: this choice guarantees 100% immediate withdrawal.
RWA extra return — the Core's interest
The coupon generated by the Core is peeled off and bought at market, every week (batched to save on gas; "buy the dip" was tested and discarded) into gold (PAXG) and tokenized S&P 500. The capital is never sold: only the accumulated coupon is at risk (~20% of capital after ~3 years). A market crash hits that 20% of coupons, never the foundations.
Momentum — 20%
Delta-neutral positions on low-gas perp DEXs. Below ~€20,000 of account (or when funding is thin): airdrops only — funding does not cover the fixed costs at small size. Above that threshold or in a "hot" regime, the funding carry is added. Each venue has a cap tied to its robustness (from 1% to 5%), and the Momentum allocation can rise dynamically (20→40%) only when funding is fat.
4How the money moves
- Deposits → capital splits 80% Core / 20% Momentum.
- Every day the Core produces interest.
- Every week that interest (never the capital) buys gold / S&P.
- The Momentum opens balanced positions on the new exchanges and collects their points; at the airdrop it cashes in, sells to stablecoins and recycles into the next candidate.
- Withdrawal → immediate, paid from liquidity (Core + cash). You get back capital + interest + the value of the RWA nest egg + any airdrops already cashed in.
5Return
The numbers are kept separate by source — never a single number that fuses lending and alpha. Figures are gross of the 10% carry, from tests on real historical data, not promises.
Measured today
| Component | Today | Note |
|---|---|---|
| Core (lending) | ~3.3–4.0% | measured, solid and liquid base |
| Momentum edge | ~0 | funding compressed now; regime-dependent |
| RWA extra return | 0 → +1 pp | only in a benign period; not bankable |
| Airdrops | lottery | convex; zero in many periods, sometimes a lot |
Regime scenarios (assumed, not measured)
| Regime | Fund base |
|---|---|
| Conservative (today) | ~3.4–3.6% |
| Normal | ~4.3–4.8% |
| Hot market | ~6–7% |
The scenarios depend on the funding regime — they are forward-looking assumptions, not the output of a backtest. Expected drawdown in the single digits; the Momentum's tail is bounded by the per-venue caps.
RWA extra return — backtest on real history
The "0 → +1 pp" above comes from a real test: period Oct 2023 → Jul 2026 (1,020 days), with real lending APY, real PAXG price and S&P 500 from FRED. The Core's coupon is DCA'd weekly; the capital is never sold, so the drawdown hits only the accumulated position.
| Variant (coupon DCA'd) | CAGR | maxDD | RWA pos. |
|---|---|---|---|
| Lending only (period baseline) | +5.6% | 0% | — |
| Coupon → 50/50 gold+S&P (strategy v1) | +7.2% | −2.2% | ~21% |
| Coupon → S&P only | +6.7% | −1.4% | ~20% |
| Coupon → gold only | +7.5% | −5.3% | ~22% |
Strategy v1 (50/50) sits in the middle: +1.6pp uplift over lending only, with a drawdown of just −2.2% versus −5.3% for pure gold. By contrast, in the real S&P crash (−34%, 2020) a static 20% would have cost ~−6.8% of the whole fund; DCA'ing the coupon risks only the small position.
6Risks
Real and stated — we keep them small, we do not make them disappear.
- Failure of a venue (the Momentum's biggest risk). Mitigated: a 1–5% cap per venue according to its robustness, continuous monitoring, exit at the first sign of trouble. The realistic worst case is a scratch of a few points, not the capital.
- Stablecoin depeg. Mitigated by choosing the most robust stablecoins and diversifying across protocols. Not cheaply hedgeable with a short.
- Smart contract. An ERC-4626 vault with structural protections (section 9); an adversarial pre-deploy audit with the holes closed. No code is ever free of risk.
- Negative funding. In a neutral/bear regime the short pays: the Momentum's edge can go to zero. That is why the basis allocation rises only when funding is fat.
- RWA swings. Gold / S&P can fall: they hit only the accumulated coupon, never the Core's capital.
- EUR/USD exchange rate. The fund operates in USD stablecoins; anyone measuring in euros carries a currency risk, to be assessed separately.
7Liquidity
Immediate withdrawal, paid from the Core's liquidity (lending withdrawable in the same block) plus cash — even with the fund paused. The vault never blocks an exit covered by realizable liquidity. No slow T-bills in v1, precisely to guarantee 100% exit with no waiting.
8Fees
10% of the gain, only above the all-time high (high-water mark). Zero if you do not gain. No fixed fee on capital. Example: €10,000 → €10,350 in a normal year = €35 to the manager, €10,315 to you. If the year closes flat or down, the manager's share is zero.
9On-chain security
The fund is an ERC-4626 vault (FarmVaultV1). The protection is structural, not a promise:
- 80/20 invariant enforced on-chain: the "at-risk" share (Momentum) can never exceed 40% of the vault, not even the keeper can concentrate it beyond that.
- Tiered per-venue cap (5% large · 3% medium · 2% small · 1% micro) — less exposure to shallow venues.
- 48-hour notice on every rule change (venues, fees): never by surprise.
- Automatic loss breakers (0.5% per operation, 2% per day) and an inflation guard on the first depositor.
- Deposits blocked if a venue's value is temporarily unreadable (no one can mint shares at a corrupted price); exits always open.
- The keeper (bot) can only move funds between already-approved venues — never withdraw to an external address.
10Governance
Sole operator, no DAO, no governance token. Decisions belong to the owner (hardware wallet) + the system, always through the 48-hour notice. The depositor has one unconditional right: to exit at value, at any time.
11Method
Every number has been put to the test on real data — repeated, verified and deliberately attacked to find its holes. 686 markets analyzed (delisted ones included), ~1,258 days of real rates and funding, 94 independent analyses and backtests, 52 on-chain tests passed.
12Disclaimer
FARMARE started as personal capital — it is not a public offering nor a solicitation to invest. Any entry happens on a private basis and under dedicated arrangements. The numbers here come from tests on real historical data, they are not promised gains: there is not yet a long track record behind them and no return is guaranteed. The biggest risk — that a venue fails — is real. This document is for informational purposes and does not constitute financial advice.