Search…
🌾
USDC Yield Fund
Let us tend to your crops, while you sit back and enjoy the yield settled in USDC.
Discuss in #yield-fund​

What is the SW Yield Fund?

The SW Yield Fund is the smart way to invest in DeFi yield farms. Our team of experts intelligently analyzes and allocates across the best yield farms to minimize risk and maximize returns. With the SW Yield Fund, you can take advantage of the interest payments generated by yield farms while mitigating the variety of risks associated with them.
The SW Yield Fund is a diversified fund that seeks a target return of 40% per year.
We employ a variety of short and long-term yield farming strategies backed by machine learning to generate alpha for our investors. If you're looking for a smart, safe way to invest in DeFi yield farms, look no further than the SW Yield Fund.

Buy on Uniswap:

How to Buy SW Yield Farm on Polygon via MetaMask
Medium

Risk Management

In order to spread protocol risk, $SWYF allocates a maximum of 25% to a single DeFi protocol.
This fund commits to having a maximum directional market exposure of 25% but targets zero market exposure.
All protocols that $SWYF is providing liquidity for are investigated and code-reviewed by a team of DeFi developers and quantitative analysts.
When available, protocol insurance will be purchased from DeFi insurance providers Nexus Mutual and InsurAce.

Live Performance

Date
Monthly Return
April 2022
+0.77%
March 2022
+1.45%
February 2022
+5.23%
January 2022
+3.10%
December 2021 (inception)
+5.75%

Historical Performance

How does this work for me as a user?

SW Yield Fund functions in a manner similar to a traditional Exchange Traded Fund (ETF).
  1. 1.
    Users purchase the SWYF token on the SW DAO platform
  2. 2.
    Funds received from purchases of the token are then placed into an aggregated pool of capital controlled by SW DAO
  3. 3.
    The pool of capital is then allocated across various yield farms by our team who are informed by our AI systems
  4. 4.
    The value of the SWYF token then increases/decreases based on the performance of the underlying assets held and yield payments received
Since all assets are held in self-custody by the user, there is no potential for SW DAO to "rug pull" the collateral that you have allocated into the SWYF asset pool.

What is Yield Farming?

Yield farming is the lending or staking of a cryptocurrency or pair of cryptocurrencies in exchange for interest (yield). Users loan their capital by placing it into a pool of liquidity and are rewarded with interest payments. Most often these interest payments come in the form of the native token for that project. Yield Farming is most popular on decentralized exchanges to organically increase the liquidity pool size, allowing for larger asset exchanges to occur on the platform with less slippage. Some yield farms boast incredibly high returns (some as high as 40,000% per year after compounding), but with such high returns comes attached risk, and users should tread carefully.

What are the risks involved in Yield Farming?

Yield Farming just like any other financial product on the market incurs risk. When you see a high yield (typically 3 figures or higher) there is likely a greater chance that one of the many risks below can occur.
  • Impermanent Loss (IL) - Impermanent loss occurs when you stake a pair of tokens that change their market value at different rates. If you loan out both a stablecoin (that seeks to remain unchanged in price over any time horizon) and a protocol token like ETH (which can experience large price changes over time), you are highly likely to experience IL when withdrawing your token pair from the pool. In some cases such as during an ETH bull run that sees the price of Ethereum increase 300% in a few months, you may have been better of using those stablecoins to purchase spot ETH (without staking) as the interest the farm pays may end up worth less than the upward movement in ETH price.
  • Smart Contract Risk - Smart Contracts are the codified digital law that defines the technical workings of a protocol. Hacks and smart contract errors can occur on audited and the best-written lines of code. An exploitable weakness in the smart contract code or other forms of attack can see a token quickly lose all value and leave some users holding a bag of worthless coins.
  • Rug Pulls / Fraud - These exit scams occur on projects where fake companies are built and marketed to individuals in an attempt by the founding members/insiders to take the investors' money and disappear. Most often, this occurs when the development team controls an overwhelming majority of the circulating supply and dumps it all on the market once a price goal or certain level of hype is reached (this is known as a 'rug pull' in crypto circles). A 2020 CipherTrace report found that 99% of major frauds that occurred in crypto were rug pulls or exit scams.

Why Use SW Yield Fund?

If you'd like to get some exposure to Yield Farming but don't have the time to do research or constantly watch the charts on new/unproven farms while you tend your 'crops', then allow us to do it for you. With our Machine Learning overlay, combined with our expert quantitative analysts we are able to move capital around in ways that maximize yield efficiency while mitigating risk. Our team combined with our AI system work around the clock to find the best balance of yield and capital safety by monitoring charts, checking contracts, and doing research on your behalf.
Simply put, instead of you researching and worrying about rug pulls and IL, we do the work and provide you with the impressive returns that Yield Farming has to offer.

Fees

  • Performance fee: 30%
  • Management fee: 0%

Quarterly Lockups

Redemption of SWYF is available in the last three days of each quarter. During this period, it is possible to sell SWYF for USDC on Uniswap. For the remaining time, only buy orders are available.

Resources