Friktion Research
Published in

Friktion Research

Introducing Friktion’s Portfolio Manager

app.friktion.fi/portfolio

DeFi products historically lack meaningful insight into their sources of return, historical performance, and associated risk metrics. With the launch of Friktion’s Portfolio Manager, we’re excited to take a big step forward in our vision for full-stack portfolio management.

Users can now easily track Returns (alpha) and Value (beta) across positions in every Volt!

Start here → app.friktion.fi/portfolio

To get started, connect your wallet or append a wallet address to the URL as shown below: app.friktion.fi/portfolio/solana_wallet_address

Example: https://app.friktion.fi/portfolio/Ewwa1U4rvp6ix82zNuFZwv27G1yy3c6uSuoAv1jvmPNR

Friktion Portfolio Page: app.friktion.fi/portfolio
https://app.friktion.fi/portfolio/Ewwa1U4rvp6ix82zNuFZwv27G1yy3c6uSuoAv1jvmPNR

What is a portfolio?

A portfolio is an aggregation of individual positions held by a capital allocator. By analyzing and optimizing the value and performance of a portfolio of Volts, anyone can access diverse, risk-adjusted returns — regardless of whether you’re an Institution, Treasury, whale, or active trader.

Friktion’s Portfolio page seeks to provide the knowledge and tools needed for anyone to perform across market cycles.

Key metrics: Return & Value

These are two useful performance charts that every investor should track when deploying capital into any strategy:

Portfolio Value + Return on Investment (RoI) + Fun Box: app.friktion.fi/portfolio

Return

Measures the net dollar returns (profit-or-loss/PnL) generated from all Volts. Asset prices are updated live. Often this is referred to as Alpha, measuring the outperformance of a strategy versus the broader market.

Return on investment (RoI) is calculated as the net return based on the spot price at each epoch. You can use these formulas to calculate the $ ROI:

$ ROI = SUM( Epoch_PnL * Spot_Price_at_Epoch_End)

Top chart shows net Returns generated. Bottom chart shows weekly PnL generated (per Epoch), broken down by each asset and Volt. Hover over each stacked bar to see a breakdown of that week’s performance by Volt or Asset.

Return charts: app.friktion.fi/portfolio

The return on investment for Volts #01, and #02 can be viewed as the dollar value of the premium locked in at the start of every epoch as a percentage of the portfolio value, ignoring future fluctuations in spot price. The return on investment is denominated in the initial deposit token, and has its value added to the portfolio at the end of every epoch.

Portfolio Value

Tracks historical portfolio value in dollars (USDC), marked to current prices, inclusive of the initial deposit and the return on investment. Often this is referred to as Beta, which measures the exposure (risk) to the overall market a portfolio has.

Portfolio Value = SUM(Token_Held * Token_Spot_Price)

Value chart: app.friktion.fi/portfolio

Since some Volts (Volt#01: Generate Income) are designed to produce yield on non-USDC assets, any change in that underlying assets price will be reflected here. For example, if you deposited 100 SOL in Volt#01 in January 2022, you would have 115 SOL now. However, since the price of SOL (in USDC) has fallen since then the Value chart will reflect this.

For assets with different Epoch durations, PnL will be accrued in the week coinciding with the expiration.

Position Tracker

Below the Return/Value charts and Key Metrics is a table of all Volt positions of an account. This offers deeper insight into each asset a user actively holds. Clicking on an individual row will open up the Deposit/Withdrawal modal for an asset.

Some important fields:

  • Deposit: Amount of asset deposited by user
  • Value: USDC value of the Deposit
  • Net Return: Net profit-or-loss in Deposit asset and USDC value (marked-to-market)
  • Volt Tokens: Represent the number of fTokens held by a user. Read more about fTokens.
  • Win Rate: Number of positive return Epochs / Number of total Epochs
  • Voltage: Risk level associated with a Volt
  • Status of the position: Actively earning, Pending Deposit (deposit will be deployed when next Epoch begins), Pending Withdrawal + amount (withdrawal will be available when current Epoch concludes), Claim Withdraw (able to claim a withdrawal)

Activity Table (Historical Transactions)

Monitor and download all your historical Volts transaction activity — all in one place. Download as CSV.

If you’re interested in helping format this better fit the templates of CoinTracker, TaxBit, TurboTax, or other tax softwares that you fancy, please drop a message via Discord in the #feature-request channel or email us at team@friktionlabs.com with “Activity Table” in the subject line. Thanks!

Any features you want to see added?

If you encounter a bug, have a question, or a feature recommendation — drop us a message in #general in our Discord (discord.gg/friktion) or email us at team@friktionlabs.com with “Portfolio” in the subject line. Thanks!

About Friktion

Friktion is DeFi’s leading protocol for risk-managed yield strategies. Friktion’s 4 core products, known as Volts, are diverse building blocks of DeFi portfolios that can perform across market cycles. The platform has amassed over 17,000 users and traded >$2bn in volume. The protocol’s mission is to enable access to long-term sustainable DeFi yields.

Learn more at app.friktion.fi
Read more on our blog at https://friktionlabs.medium.com/

Media Inquiries: Email us at team@friktionlabs.com

Note: No information provided in this article should be taken as financial, legal, or tax advise.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store