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What are Solrise Funds
Solrise Finance is a platform for 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.
Fund managers can perform asset swaps via AMM pools using Jupiter's DEX aggregator and trade on-chain perpetual futures contracts using Mango Markets' orderbook. In the future, they will be able to stake / unstake tokens, accumulate yields, and take part in many other DeFi activities such as lending and borrowing.
Fund management in Solrise will be handled via a flexible governance template - from direct single key management, multi-sig to shared governance via DAO. Any one or any entity can invest in or create a fund.
Non-Custodial
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.
Base Assets
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.
With 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.
Flexible Fee Structures
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 its lifetime performance and performance over an elapsed period of time (day, month, year).
Last modified 16d ago
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