- Fixed protocol universe: Assets can only be deployed into Morpho, Aave, and Maker/Sky. These protocols have been successfully operating for years and have had their smart contracts audited many times over.
- Low-risk markets: Only low-risk markets, i.e. markets with a liquid, stable collateral token are selected. The importance of this is explained in the section on liquidation mechanisms.
- Maintain complete liquidity: Keyrock heavily prioritises markets with a large amount of available liquidity. This ensures that clients can always instantly withdraw all their assets if they need them. Keyrock exits markets if capital utilisation becomes too high, i.e. too much borrowing occurs, to make sure that deposited assets are never locked.
- Yield optimisation: Within these constraints, Keyrock seeks to maximise the yield generated for clients.
Risk framework
What exactly is Keyrock’s mandate?
Keyrock’s role is to define and maintain the investment strategy of Byzantine Prime. All investments happen in stablecoins - Keyrock’s strategy simply determines the marketplaces that client assets flow into. Keyrock does not have discretion to deploy into unapproved assets or take directional market risk.
To frame this task, it has a very strict mandate, which prioritises (in that order):
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