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Solrise — A decentralized fund management and investment protocol on Solana

Solrise is inspired by the visceral need for financial freedom.

solrise.finance

Solrise is easy to use, practical, and almost trustless. Choose a fund to invest in, or create your own — with just a few clicks. Get exposure to assets from across Solana without sacrificing security or your time.

Solrise Finance is a Solana-based protocol for decentralized, non-custodial asset management. Solrise allows anyone to create, manage or invest in a managed portfolio of native and synthetic assets. We decided to build Solrise on Solana, a fast, DeFi-friendly blockchain with a focus on scalability, because we believe it offers the right balance of security, speed and ease of use.

‌DeFi presents users with a whole universe of opportunities for investment, but the same attributes that allow those opportunities to exist also make it difficult and daunting for the average user to take advantage of them. We want to improve the experience for those looking to allocate capital, and believe that an open, permissionless and transparent platform can serve the needs of both experienced users looking for a more streamlined approach to portfolio management and novices more interested in a passive managed strategy.

Solrise will allow any third party manager to create and provide actively managed funds or passive, automated investment pools, allowing users to participate in a variety of different assets and protocols, both Solana native and off-chain. We aim to make the experience of using the Solrise platform akin to using a first-class centralized investment app, while staying aligned with the core ideals of DeFi by ensuring that fund management remains totally non-custodial. We want users to be secure in the knowledge that their funds are safe.

USE CASES

Users will be able to compare different investment funds offered by third party managers on Solrise based on transparent, understandable and objective metrics and find the one that suits their risk profile. They can then pick and choose the fund or vehicle that focuses on different aspects of the market (different token portfolios, NFTs, synthetic assets, or different balances).

Established users and insiders are used to being bombarded with questions about how to “get started in crypto”, but this knowledge transfer does not scale. The core idea of Solrise is to create a multi-sided market for investment knowledge — one where many users can benefit from the expertise of fund managers, quants and market leaders.

DeFi experts will be able to share expertise with their friends, family or community of choice by setting up a fund both public or private. Regular users that want to have a start in the crypto market can look for a fund on Solrise and invest into people they trust, with the knowledge that their assets are safe from any risk of misconduct.

Every fund can have a different overall investment strategy and can deploy capital to various assets:

  • A risk minimized index following blue-chip crypto assets and of stable coins
  • A liquidity pool fund to provide liquidity across different pools and protocols
  • An NFT fund focusing on shares of one (or more) NFTs
  • A value fund looking to make early, medium to long-term investments into undervalued assets
  • A macro fund looking to invest into commodities and forex through synthetics
  • A fund investing in animal based tokens, mainly dogs
  • And much more.

Launch Product — Solrise Funds

The launch products of Solrise Finance are non-custodial Solrise funds.

Solrise funds operate in a manner similar to hedge funds in traditional financial markets. Each fund represents a pool of tokenized assets that is actively managed by third party fund managers (and their teams).

Fund managers can perform asset swaps via AMM pools, create trades (open and close positions), stake/unstake tokens in protocols and accumulate yield in the portfolio or perform similar investment actions on the underlying integrated DeFI protocols.

Fund management in Solrise will be handled via a flexible governance template — from direct single key management, multisig to shared governance via DAO.

Solrise is a fully decentralized non-custody protocol. This means that fund managers never gain access to assets in their fund. Fund managers can only perform investment actions on certain allowed Solana programs to perform the work of managing the fund. Fund managers (or any attacker that gains manager privileges) cannot transfer the assets out of the fund to a third party.

Solrise maintains a list of base assets that users can deposit to buy into a fund. A base asset is the assets that users can deposit to a fund. Solrise currently supports USDC (on Solana), with plans to add more base assets via protocol upgrades. Funds can use one or more base assets, which are initially determined by the fund manager when a fund is created. Funds can allow or block deposits in more base assets via governance action. This change does not affect the existing balances in the fund — if one base asset is removed, the balance in the fund remains, but users cannot make deposits in that asset anymore.

In Solrise, anyone can become a participant of a fund, as long as the fund is open and if they have a balance of the appropriate base assets. When depositing the base assets, the user will in turn receive the proportional amount of fund tokens (FT), representing her claim on the fund. If the fund performs well, the value of fund tokens will go up over time, entitling the user to a profit proportional to her share of the fund.

Fund managers will have the ability to set a combination of different fee mechanisms on Solrise funds, including but not limited to:

  • Performance fees — based on high-water-mark performance against a benchmark
  • Management fees — based on averaged value of assets under management over a period
  • Exit fees — based on the percentage of the exit value by the user
  • Entrance fees — based on percentage of entry value by the user

The fee structure for a fund can be changed (through the fund governance) — without affecting current fee calculations and with proper notification to users.

Solrise funds determine asset value via a set of price feeds from decentralized oracles (such as Pyth). Additional oracles and feeds are planned and can be introduced via protocol upgrade.

Solrise tracks the performance of every fund in a transparent way. Each fund tracks it’s lifetime performance and performance over an elapsed period of time (day, month, year).

SLRS Token Utility

The native digital cryptographically-secured token of Solrise Finance (SLRS) is a transferable representation of attributed governance and utility functions specified in the protocol/code of Solrise Finance, and which is designed to be used solely as an interoperable utility token on the platform.

SLRS is a non-refundable functional utility token which will be used as the medium of exchange between participants on Solrise Finance in a decentralized manner. The goal of introducing SLRS is to provide a convenient and secure mode of payment and settlement between participants who interact within the ecosystem on Solrise Finance, and it is not, and not intended to be, a medium of exchange accepted by the public (or a section of the public) as payment for goods or services or for the discharge of a debt; nor is it designed or intended to be used by any person as payment for any goods or services whatsoever that are not exclusively provided by the issuer. SLRS does not in any way represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will SLRS entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. SLRS may only be utilised on Solrise Finance, and ownership of SLRS carries no rights, express or implied, other than the right to use SLRS as a means to enable usage of and interaction within Solrise Finance.

The primary utility of SLRS is to function as the base platform currency to enable the continued operation of the Solrise Finance Protocol. SLRS is spent by users to pay for Entry/Exit Fees to Solrise Funds, or locked by Fund Managers to reduce the share of management fees taken by the Solrise Protocol.

Prescribing a fee payable in SLRS on top of the existing Solrise Fund fee structure ensures that the protocol can run smoothly, and that it can be maintained and upgraded over time.

In order to promote decentralized community governance for the network, SLRS would in the future allow holders to propose and vote on on-chain governance proposals to determine future features of Solrise Finance (the right to vote is restricted solely to voting on features of Solrise Finance; it does not entitle SLRS holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, and does not constitute any equity interest in any of these entities, and the arrangement is not intended to be any form of joint venture or partnership).

SLRS also provides the economic incentives which will be distributed to encourage users to contribute to and maintain the ecosystem on Solrise Finance, thereby creating a win-win system where every participant is fairly compensated for its efforts. SLRS is an integral and indispensable part of Solrise Finance, because without SLRS, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on Solrise Finance. Given that additional SLRS will be awarded to a user based only on its actual usage, activity and contribution on Solrise Finance, users of Solrise Finance and/or holders of SLRS which did not actively participate will not receive any SLRS incentives.

Once governance is established, it is the community members who would maintain and drive development of Solrise Finance, so SLRS token incentives would need to be distributed to compensate them for their time, expertise and effort. Only users who have participated in submission of proposals, commenting, reviewing and/or voting will be entitled to receive SLRS token governance rewards.

Solrise Protocol Fee

Solrise Protocol will take a small cut from fees charged by Fund Managers during the normal operation of Solrise Funds as the Protocol Fees. These fees include:

  • Performance Fees — can be claimed by Fund Managers when Solrise Funds make a profit against the benchmark during a fee crystallization period.
  • Management Fees — can be claimed by Fund Managers for an accounting period as a small percentage of all assets under management.
  • Entry Fees — can be claimed by the fund manager as a small part of every deposit to the fund, with a small base Entry Fee charged by the Solrise Protocol directly in SLRS.
  • Exit Fees — can be claimed by the fund manager as a small part of every withdrawal from the fund, with a small base Exit Fee charged by the Solrise Protocol directly in SLRS

Solrise’s aim is for the protocol to grow together with well performing funds by taking a percentage of manager fees generated. All protocol fees will be held in the Long Term Reserve (LTR) Pool, to be allocated towards protocol maintenance and improvements.

SLRS and Entry/Exit Fees

The Solrise Protocol’s share of fund Entry/Exit fees needs to be paid in SLRS, so users who do not have SLRS will need to acquire SLRS to enter/exit funds in the platform.

SLRS and Managers Fees

Fund managers can lock SLRS (personally) to their funds to reduce the share of their fund fees taken by the Solrise Protocol.

SLRS Long Term Reserve Pool

All fees charged by Solrise are held in the Long Term Reserve (LTR) Pool (held in SLRS).

The aim of the LTR Pool is to hold SLRS for the platform maintenance and development, pending establishment of decentralized governance for the protocol. Upon reaching viable governance, the users of Solrise Protocol may allocate tokens towards initiatives to benefit the growth and development of the protocol and to incentivize active contributors.

Notwithstanding the SLRS distribution, users have no economic or legal right over or beneficial interest in the LTR Pool, assets of the Company, the Distributor, or any of their affiliates after the token distribution.

Future Utility

We plan to expand the use and utility of SLRS over time via protocol upgrades. Our aim is to positively incentivize the usage of the token and to match its health and growth to the health and growth of the platform itself.

Potential further changes to updates SLRS utility may include:

  • Token lockups as a security deposit to ensure service standards and minimum acceptable behavior.
  • Pooling SLRS in funds to enable borrowing and minting synthetics.
  • Integration of SLRS in further Solrise products as they are released.

TOKENOMICS

The maximum token supply of SLRS is capped at 1,000,000,000.00 tokens.

Out of the token distribution, the individual allocations are described in the below table:

SLRS Token Distribution & Vesting Schedule

Solrise is raising a total of $3.4M for 11.97% of total tokens, distributed as follows:

Solrise Fund Raising Series

In particular, it is highlighted that SLRS: (a) does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value); (b) is non-refundable and cannot be exchanged for cash (or its equivalent value in any other digital asset) or any payment obligation by the Company, the Distributor or any of their respective affiliates; © does not represent or confer on the token holder any right of any form with respect to the Company, the Distributor (or any of their respective affiliates), or its revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or licence rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to Solrise Finance, the Company, the Distributor and/or their service providers; (d) is not intended to represent any rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (e) is not intended to be a representation of money (including electronic money), security, commodity, bond, debt instrument, unit in a collective investment scheme or any other kind of financial instrument or investment; (f) is not a loan to the Company, the Distributor or any of their respective affiliates, is not intended to represent a debt owed by the Company, the Distributor or any of their respective affiliates, and there is no expectation of profit; and (g) does not provide the token holder with any ownership or other interest in the Company, the Distributor or any of their respective affiliates.

To the extent a secondary market or exchange for trading SLRS does develop, it would be run and operated wholly independently of the Company, the Distributor, the distribution of SLRS and Solrise Finance. Neither the Company nor the Distributor will create such secondary markets nor will either entity act as an exchange for SLRS.

INVESTORS

Solrise Investors & Partners

CMS Holdings ************ Jump Capital ************ Reciprocal Ventures

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