Valory’s project will leverage the Autonolas tech stack to enable an autonomously controlled Smart Managed Pool (SMP) structure. You can think of SMPs as DeFi-native ETFs or robo advisors. Valory will build the first SMP and from there, developers will be able to fork the code, create their own strategies and attract capital.
Balancer Managed Pools are coming soon. Today, pools could be operated manually, by a bot or by a smart contract. These are all good options, but lack scalability, transparency/regulatory clarity and flexibility, respectively. Leveraging Autonolas’ tech stack, Smart Managed Pools will provide fund managers with a scalable new model to operate rich strategies in a robust, decentralized way. SMPs are powered by autonomous services — learn what those are and how they work.
For this grant, Valory will be creating an MVP for an autonomous Crypto Fear and Greed Index Fund. This fund changes its allocations autonomously according to the ratings of the Crypto Fear and Greed Index. These ratings range from Extreme Fear, Fear, Neutral, Greed, Extreme Greed. For each rating, the service has a different pool allocation. The fund embodies Warren Buffet’s recommendation to be “fearful when others are greedy, and greedy when others are fearful.” Accordingly, the allocations of the managed pools reflect greed in times of fear and vice versa. The MVP will keep things simple and only allocate across three assets: ETH, BTC and USDC.
Once the pool allocations have been encoded and the Balancer pool created, the SMP service takes the reins. The service monitors the crypto fear and greed index daily and changes between the 5 sets of allocations accordingly.
You will be able to fork the entire codebase for this MVP, make tweaks and run your own SMPs. This creates a viable path to a new universe of sophisticated funds all built on top of Balancer’s Managed Pools. To get a headstart, reach out to the Valory team today — they’re eager to help you get up and running!
“ Smart Managed Pools will open up a whole new design space for managed AMM’s. By adding flexibility to how pool controllers can use external information for rebalancing strategies, SMP will allow for new advances in pool management and capital efficiency.”
— Mike B, Balancer Maxi and Grants Committee Member
“ We believe SMPs could become a new primitive for scalable and decentralized asset management. Balancer remains one of the most technologically innovative DEXes in crypto, and we’re thrilled that the grants team saw the potential of our stack.”
— Oaksprout the Tan, Valory Co-founder
Valory is a team of scientists, engineers and designers who seek to deliver world-leading, cutting-edge research, products and services at the intersection of multi-agent systems (MAS) and distributed ledger technology (DLT). Valory is the creator of Autonolas.
More information about Valory can be found here.
Autonolas enables developers to build autonomous services — a new software primitive which combines the flexible compute of Web2 with the power of Web3.
About Balancer Grants
The BAL Grant program is one way BalancerDAO promotes the development of the Balancer Protocol and Ecosystem.
The BAL Grant program provides support and funding ($1K — $100K) to projects committed to supporting Balancer Protocol in achieving its mission to become the number one source for Decentralized exchange trades. This program is a good fit for individuals and groups that want to run a project that builds technology or resources on the Balancer Protocol.
If you are interested in supporting the development of the Balancer Ecosystem or want to build on top of the Balancer Protocol, this is your chance! Get started by filling in the Grants Application form. You can also check out our RFP page for inspiration!