Web3 And TradFi Collide Through Anemoy’s DeFi Yield Fund

Decentralized finance is promising to revamp TradFi, with Anemoy, a web3-native asset manager, launching a tokenized fund offering exposure to DeFi yields

Announced on Sept. 3, the Anemoy Market Neutral Crypto Fund of Funds, also known as the DeFi Yield Fund (DYF), offers diversified exposure to an active portfolio of market-neutral yield strategies without using leverage.

Shares in the DYF fund are issued in the form of digital asset tokens. Tokens can be issued on multiple networks including Ethereum, Centrifuge Chain, and Ethereum Layer 2 networks.

“DYF employs a market-neutral mandate, focusing on yield generation through innovative strategies such as yield farming, funding rate arbitrage, lending, and special situations,” Anemoy said. “These strategies are designed to exploit market inefficiencies and deliver consistent returns optimized for capital appreciation.”

The fund is regulated by the British Virgin Islands Financial Services Commission. Anemoy said it offers strong investor protections, including “legal claims on assets,” a bankruptcy remote structure shielding the fund from being impacted by other entities and funds within Anemoy, and on-chain transparency allowing investors to track DYF’s portfolio in real-time.

"The Fund addresses investors seeking high yield assets by providing a diversified risk-based approach to market neutral active managers; all within [a] registered and regulated fund structure,” said Martin Quensel, the co-founder of Anemoy.

DYF portfolio

DYF combines exposure to multiple market-neutral strategies within a single investment, starting with two funds managed by Re7Capital and Dialectic, respectively.

The Re7Capital fund deploys stablecoins for DeFi and permissioned real-world asset (RWA) lending in addition to cash and carry basis trades, while Dialectic focuses on stablecoin yield generation. Both funds are structured as Cayman segregated portfolio company funds, and charge management and performance fees of 2% and 20%.

DYF’s historic performance would have generated returns of 39.4% in 2021, 5.2% in 2022, 12.8% in 2023, and 15.2% during 2024 so far. The fund would have posted losses for three of the past 36 months.

Anemoy said it will onboard up to eight separate funds to DYF, each of which must have operated for at least two years.

Investors can redeem DYF shares on a monthly basis.

DeFi protocols back Anemoy’s tokenized treasuries fund

Anemoy became the first asset manager to launch on Centrifuge Chain — a Polkadot parachain operated by Centrifuge, a web3 RWA protocol — in August 2023.

Anemoy jumped on the tokenized treasuries bandwagon in November 2023 with the launch of its Liquid Treasury Fund (LTF), which offers exposure to six-month U.S. treasury yields.

LTF has recently attracted investment from prominent web3 projects, with Frax’s governance greenlighting a $20 million allocation into LTF in December, Gnosis DAO approving a $10 million outlay in January, and Celo mobilizing $100,000 in March. The fund currently boasts a total value locked of nearly $12.9 million.

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