Byzantine Prime is a digital credit product whose strategy is curated by Keyrock, a regulated Digital Asset Service Provider (DASP).
| Byzantine Prime | |
|---|
| Supported assets | EUR or USD |
| Base & reward currency | USDC (USD-pegged) or EURC (EUR-pegged) - stablecoins issued by Circle, backed 1:1 by cash and short-term government bonds |
| Asset split | Assets are allocated across blue-chip lending protocols: Morpho, Aave, Maker/Sky, and Compound |
| Returns distribution | Returns accrue in real time and are credited to your balance daily |
| Liquidity | 24/7 access; withdraw anytime, no lock-up periods |
How returns are generated
Returns come entirely from lending activity, not from speculation or trading. Byzantine Prime deposits capital into overcollateralised lending markets where institutional borrowers - market makers, arbitrage traders, and funds - pay interest in exchange for short-term liquidity. That interest flows directly to depositors.
Every loan in these markets is backed by more collateral than the loan value (typically 120–150%). If a borrower’s collateral value drops too close to their loan, the smart contract automatically liquidates the collateral to repay lenders before any loss occurs. Depositors have no direct exposure to individual borrowers. For a full explanation, see Overcollateralisation & liquidation.
The target yield
Byzantine Prime targets the Federal Funds Rate (for USD products) or the European Central Bank rate (for EUR products) plus 400 basis points (0.4%). At current rates, this is approximately 8% per year.
This spread exists because capital on digital lending markets is still scarcer relative to borrower demand than in traditional money markets. Institutional borrowers - particularly those using market-neutral strategies - are willing to pay materially higher rates for fully collateralised, instant liquidity. Because yields are set algorithmically by utilisation (how much of the pool is borrowed) rather than by a fund manager’s discretion, this premium has remained structurally stable over time.
Byzantine Prime captures this spread without leverage or duration risk, by allocating stablecoins into medium-utilisation, overcollateralised lending markets selected and monitored by Keyrock.
What “Base rate” means
The “Base” in “Base + 400 bps” refers to the Federal Funds Rate for USD products and the European Central Bank rate for EUR products. This is used purely as a benchmark - Byzantine Prime does not hold T-bills or any traditional finance instruments. As global rates move, digital lending rates track them, with the utilisation-driven spread of approximately 400 basis points persisting as a function of borrower demand.
Currency and hedging
Deposits and returns are denominated in stablecoins - USDC for USD products and EURC for EUR products. When you withdraw, both your original deposit and accrued interest are available in the same stablecoin, ready to convert back to fiat through the integrated off-ramp.
For EUR products, the EUR/USD foreign exchange risk is fully hedged - you are not exposed to currency fluctuations between your EUR deposit and the underlying USDC-denominated lending markets.
Insured vs uninsured products
Byzantine Prime offers two variants of each product. Both use the same lending strategy and overcollateralisation protections. The insured variants (marked with ⚡) carry an additional layer of institutional insurance provided by AON, covering losses from smart contract failure.
| Insured ⚡ | Uninsured |
|---|
| APY | Slightly lower | Slightly higher |
| Overcollateralisation | ✅ | ✅ |
| Smart contract audits | ✅ | ✅ |
| Real-time monitoring | ✅ | ✅ |
| AON insurance policy | ✅ | ❌ |
Fees
Performance fee: Byzantine charges 10% of returns, calculated daily and deducted directly from interest earned. Account balances are always displayed net of all fees - the APY shown on your dashboard is what you actually receive. This single fee covers Byzantine’s technology and operations, Keyrock’s asset management fees, custody costs, and all internal rebalancing transactions. There are no management fees, entry fees, or exit fees.
In practice: if the lending markets generate 8.9% gross annual yield, you receive approximately 8% (90% of 8.9%). Byzantine earns only when you earn.
All gains are shown net of fees.
