Aera Finance: Abbreviated Introduction
As decentralized finance (DeFi) continues its growth trajectory, valued at over $42 billion in assets locked in smart contracts, it is reasonable to ask what primitives are needed to reach a multi-trillion-dollar market size. One increasingly common way to improve capital efficiency in on-chain protocols is to have insurance funds that cover deemed shortfall events. Aave and Synthetix, for example, rely on these stake-based insurance funds to ensure that borrowing or trading risky assets are safe for capital providers. However, in times of extreme duress, these treasury reserve funds are likely to run into failure conditions as they have to cover their liabilities in a depreciating asset (e.g., the native governance token).
Aera Finance is a mechanism that offers decentralized autonomous, risk-aware treasury management to decentralized treasury reserve funds. It allows treasury reserve funds to automatically decorrelate assets utilized to pay insurance liabilities from the protocol’s native token.
The protocol is claimed to have automatic rebalancing, which allows the treasury to be managed efficiently in both bull and bear markets. This feature allows for the timely management of the portfolio.
Aera’s terms are governed by the laws of the State of New York, which is the first state to instate a temporary two-year moratorium on some cryptocurrency mining operations.
Gauntlet, the project’s parent company, has achieved unicorn status after having secured a series B funding round. Aera has an impressive team of experts with backgrounds in top universities and companies. A notable list of advisors further supports the team.
Currently, the project is in the alpha stage of development. A key goal is to implement a complete staking system.
This Report is for informational purposes only and/or all or any of its content thereof, should not, may not, and will not be taken to constitute, either as a whole or in part, any investment advice or recommendation or similar, regulated, or authorized advice, and D-Core by producing, disseminating, giving away, or making available this Report does not, should not, may not and will not be taken to advise on investments, or carry out any similar activity, or any regulated activity or any other authorized activity. D-Core is not authorized by the Financial Conduct Authority or by any other competent EU or elsewhere or otherwise competent authority to carry out any regulated activities and/or any activities within the scope of these authorities’ competence.
D-Core excludes and disclaims all liability and/or responsibility whatsoever and/or howsoever caused, arising out of any actions, or omissions taken, or made by any authorized and/or other recipient of this Report in reliance on, or arising out of, or in connection with any or all content of this Report. Any authorized and/or other recipient of this Report acknowledges, accepts and agrees that they carry out their own independent research and act in their own sole risk in reading or using any or all information contained in this Report. In any event, recipients of this Report are urged to seek professional advice before making any potential investment decision in relation to the project described herein. Any authorized and/or other recipient of this Report accepts this Disclaimer in full. For the avoidance of doubt, this Disclaimer is binding against any recipient of this Report whatsoever.