PUNK Vault allows users to gain exposure to actively managed CryptoPunk(s). The strategist selecting which CryptoPunk to buy will be determined through a data science competition with a task of building a predictive model based on historical trade and trait data.
The investment process is as follows:
Capital Raise
During the 30 day capital raise period a user is able to deposit ETH and acquire Vault tokens (1:1) in return. For the initial 10 days whitelisted members of the OptyFi community will be able to deposit exclusively, whereas the remaining 20 days will be permissionless. The ability for users to deposit within the permissionless 20 day period assumes the capital raise maximum has not been reached, however, as the Vault will not accept funds beyond that.
If the capital raise minimum is not met the Vault will not move into the investment phase, and users will be able to redeem their deposited ETH.
When 30 days have elapsed the funds will be locked for the duration of a 12 month investment phase.
Investment
The Vault’s architecture is designed to only allow a purchase of a CryptoPunk. It will not allow the chosen strategist to purchase anything aside from a CryptoPunk on Larva Labs marketplace, and it will only allow the strategist to make a purchase/sale on the Vault’s behalf. Funds are never transferred to a strategist directly.
The strategist will be able to buy/sell CryptoPunks during the 12 month period based on data-driven recommendations.
Profit Sharing
When the 12 month investment phase has elapsed there will be a 30 day wind-down period where the strategist must sell Vault holdings in order to achieve liquidity. Following this period users will be able to redeem their ETH.
The goal of the Vault is to achieve alpha with the average CryptoPunk as a benchmark. The strategist will use his/her model to make target buys that are expected to outperform the market. As a user you will receive trading profits realized over the 12 month period, but that’s not all. OptyFi will be leaking out $OPTY rewards to you over the investment period. With PUNK being the first of many NFT Vaults in OptyFi’s roadmap we have decided to provide exceptional $OPTY rewards to kick-off the product line.
Capital raised has been defined within a range, which allows us to define a benefit in token rewards. Here’s the expected APY according to the future price of $OPTY:
Assuming a future $OPTY price of $1, all depositors will be earning approximately 20% $OPTY reward APY. If you make a referral, you can earn up to 50% boost on this reward rate. In order to achieve max boost the friend you have referred must deposit an equal to or greater amount than you did.
Lastly, here is what the Vault fee model looks like, which is designed to enable further R&D in the NFT Vault product line and further incentivize great strategists:
