Fathom Vaults: Streamlined Asset Management with DeFi, RWA, and Trade Finance.

XDC Network News
XDC Network News
Published in
4 min readSep 9, 2024

Fathom Vaults is a revolutionary financial platform built on blockchain technology that empowers users to participate in a diverse range of investment strategies. It transcends the boundaries of traditional DeFi protocols, venturing into the exciting realms of Real-World Assets (RWA) and Trade Finance.

Core Strengths of Fathom Vaults:

  • Dynamic Investment Options: Engage in a variety of strategies encompassing DeFi, RWA, and Trade Finance, catering to various risk profiles and financial goals.
  • Stablecoin Integration: Utilise the FXD stablecoin, the platform’s bedrock, to earn consistent yields within the native on-chain ecosystem.
  • Decentralized Governance: The FXD community wields power through the Fathom governance model, influencing key decisions like strategy approvals and fee adjustments.
  • Security and Transparency: Publicly auditable smart contracts, along with rigorous security audits, ensure a secure environment. Additionally, transparent fee structures and insightful performance metrics foster trust and accountability.
  • Accessibility and Integration: Designed for user-friendliness, Fathom Vaults offers seamless integration for third-party services and developers, providing comprehensive documentation and access to valuable on-chain data.

Fathom Vaults: A Win-Win for Users and Managers

Fathom Vaults streamlines the investment experience for both users (investors) and vault and strategy managers. Let’s delve into the typical workflows for each:

User (Investor) Workflow

  1. Account Setup: Connect your wallet to the Fathom interface. Ensure you hold FXD, the native stablecoin used for transactions within the vaults.
  2. Vault Selection: Explore the available vaults, each tailored to specific risk tolerances and investment goals. Each vault is transparently described, outlining its strategies, historical performance, and risk levels.
  3. Deposit: Once you’ve chosen a suitable vault, deposit your FXD. This involves transferring FXD from your personal wallet into the vault’s contract, where it’s then utilized according to the vault’s defined strategy.
  4. Yield Generation: Sit back and relax! The vault automatically employs your FXD in various DeFi, RWA, or Trade Finance strategies, as pre-defined by the vault’s rules. These strategies are meticulously designed to optimize returns while managing risk.
  5. Earnings and Reports: Track your investments’ performance through the user-friendly dashboard that provides real-time data on earnings and the overall health of the vault. Configure periodic reports and alerts for active monitoring.
  6. Withdrawal: At your convenience, you can withdraw your principal along with any accrued returns, subject to the vault’s terms, such as lock-up periods and withdrawal fees. The straightforward withdrawal process credits the FXD back into your wallet.

Vault and Strategy Manager Workflow

  1. Strategy Deployment: Develop and deploy innovative strategies within the Fathom ecosystem. These strategies can encompass a combination of yield farming, lending protocols, or investments in real-world assets.
  2. Vault Configuration: Integrate your strategy with a vault. Configure the vault settings, including fees, risk management protocols, and performance targets.
  3. Capital Management: Expertly manage the capital pooled within the vault. This crucial role involves allocating capital effectively across different investments and ensuring sufficient liquidity to meet withdrawal demands.
  4. Performance Monitoring and Adjustment: Constantly monitor the vault’s performance and make necessary adjustments to the strategy to maximize returns while minimizing risks. This might involve rebalancing the portfolio, harvesting yields, and adapting strategies based on market conditions.
  5. Reporting and Communication: Maintain clear communication with investors. This includes providing regular updates on vault performance, upcoming changes or proposals, and any significant market movements that may impact the vault.
  6. Fee Collection and Reinvestment: Collect performance-based fees as compensation for managing the vault. These fees are typically a percentage of the profits generated and are automatically deducted from the returns. Managers may also opt to reinvest a portion of their earnings back into the vault, aligning their interests with those of the investors.

Ready to Explore Fathom Vaults?

For a detailed guide on depositing and withdrawing your FXD in the Vault, visit the official documentation: https://docs.fathom.fi/vaults/user-guides/deposit-and-withdraw-in-vault

Get started with a quick instructional video that walks you through minting FXD using XDC and depositing it into Vaults. You’ll discover the vast potential of Fathom Vaults: https://fathom.fi/

TradeFlow Capital the creator of vault — watch an introduction Explainer Video about how Trade Flow Fund Strategy works to enable SME Commodity Trade around the world and how it offers Investors a very strong RAROC return thanks to the Asset Ownership model.

Fathom Vaults is revolutionizing the world of asset management with its blockchain-powered, decentralized approach. By offering flexible, transparent, and secure investment options, the platform caters to both seasoned investors and newcomers alike. Whether you’re looking to engage in DeFi, explore real-world asset investments, or manage capital in a vault, Fathom Vaults is your gateway to the future of finance.

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