Manager and Strategies
A Manager is the individual or entity responsible for running a strategy on GRVT. All managers are verified by GRVT before being allowed to launch strategies. While managers have full control over trading execution, they cannot access or withdraw investor funds. Positions are updated every four hours to protect the manager’s edge while giving investors visibility into how their capital is being used. Each strategy is a live, on-chain representation of the manager’s conviction and skill.
Investors
Investors are users who allocate capital into strategies they believe in.
Shares
When an investor allocates capital into a strategy, they receive shares that represent their ownership. These shares are minted based on the strategy’s current net asset value and are burned upon redemption. Share value fluctuates with the strategy’s performance.
Investment and Redemptions
Investment is the act of contributing USDT into a strategy in exchange for shares. The number of shares received is based on the strategy’s current share price. All investments are handled on-chain and follow a trustless, rules-based process.
Redemption means returning your shares in a strategy to receive back USDT.
Incentive Structure
Managers Earn Through Performance
Managers are rewarded based on their ability to generate returns. Their compensation comes from:
Management Fees: A small daily fee based on total assets under management, paid in strategy shares and minted via a compounding formula. The manager can set this number between 0 and 2%.
Performance Fees: Charged on profits realized at redemption, based on the difference between entry and exit price of investor shares. The manager can set this number between 0 and 2%.
Marketing Fees: A portion of the manager’s earnings is optionally allocated to GRVT in exchange for visibility and promotion on the platform. All initial vaults will have 0% marketing fee.
Investors Own the Upside
Investors gain when they back successful strategies. Their returns are reflected in appreciating Share Value: Strategy shares increase in value as the manager performs.
Investors and Managers earn $GRVT Rewards
A. Trade to earn and Quote to earn points
When an investor allocates capital into a strategy, that capital helps the manager generate trading volume, liquidity, and performance. As a result, the strategy earns GRVT Points. A portion of those points is automatically shared with the investors, based on a pre-defined reward-sharing ratio set by the manager at strategy creation. For example, if sharing is 60%, and the manager owns 10% of shares, they receive 46% of rewards. For example, let’s say:
Reward Sharing Ratio = 60% (investors get 60% of all points)
Vault Manager Ownership = 10% of all shares in the vault
The rewards that are shared are Trader points (trade to earn) and LP points (quote to earn) points.
B. Ecosystem Points
You earn 10 ecosystem points for every $1 of share value held in a vault at the epoch snapshot, making vault holdings a highly efficient way to accumulate points. Additionally, when someone you referred deposits into a vault, you receive 10 points per $1 they deposit, credited at the end of the epoch. This creates strong incentives both to invest and to refer others. In addition to this, Some vaults may even offer early boost ecosystem points for investing early on into the vaults.
Risks of investing in a strategy
Strategies are exposed to trading risk, share prices can decrease. Additionally, during the redemption period, investors share in any losses but are excluded from gains, which reduces risk of fee avoidance.
Who can create a Strategy?
Anyone can create a strategy if they meet the minimum investment requirement of $10,000.
Can Strategy Settings Change?
Some fields can be updated (e.g., redemption periods, valuation caps), while others (like management fees) can only be adjusted in a specific direction (e.g., fees reduced, not increased).