As Decentralized Finance (DeFi) has grown into an industry with more than $200 billion locked in protocols, so has risk appetite across a spectrum of investors. These varying levels of risk tolerance require a more diversified portfolio of asset management products to meet the requirements of investors.
Bella Protocol is a DeFi governance platform that claims to have found a solution to this problem. The platform aims to be the “BlackRock of Crypto Wealth Management” with a series of products aimed at simplifying the manufacturing process and eliminating gas taxes.
Bella Virtuoso, the next stage of the Bella protocol, is an unlicensed DeFi asset management platform that will connect investors with the best liquidity provider (LP) strategies on Uniswap v3. Bella describes Uniswap v3 as a “turning point” in terms of capital efficiency, but at the cost of much higher barriers to entry.
Although Uniswap v3 allows users to adjust the price range to provide liquidity, there is no real indication to guide LPs when determining the price range. In fact, Bella argues that because they are so concerned about long-term losses, most liquidity providers fail to appreciate that the focused liquidity in Uniswap v3 will significantly mitigate their risk. In addition, portfolio rebalancing often results in higher gas charges.
Bella Virtuoso allows DeFi strategists and investors to leverage their optimal strategies using backtesting and executing on the built-in Uniswap v3 emulator.
Bella Virtuoso’s idea is to offer a comprehensive solution for any type of investor, while celebrating the authors’ wisdom regarding quantum strategy. Professional DeFi traders and strategists get a share of the profits that the average investor makes using their strategies.
In the meantime, investors can choose the strategy that best suits their level of risk from among the range of investment strategies offered.
More information about the BELLA protocol here
“Everyone will have equitable access to top-tier asset management services. Uniswap v3 provides a great tool for capital efficiency. In building Bella Virtuoso, we use the wisdom of community developers to help investors truly benefit from the capital efficiency and flexibility of Uniswap v3,” said Felix. Shaw, the lead developer of the Bella protocol.
An important component of achieving this will be the deployment of Tuner, a Uniswap v3 software emulator that allows strategists to test their strategies against key network data.
Tuner reproduces the complex design and implements Uniswap v3 on its own for every transaction without an Ethereum Virtual Machine (EVM). The company explains that the tool can return transactions and even take or restore a snapshot. As such, the platform claims that strategists will be able to perform a “near-perfect” backtest using on-chain historical data.
I look forward to
In the near future, Bella Protocol intends to include a number of platform updates that will bring additional benefits to users. In the first quarter of 2022, the platform will include a “strategy execution bot” that automatically adjusts the price range for focused liquidity. Once this is implemented, investors will no longer need to manually adjust the price range to maximize fund utilization, saving time and gas tax.
The platform says that Q2 and Q3 will focus on the bigger picture of user connectivity and learning, as well as developing quantum strategies. Bella says it will include an intelligent contract-based money management system to protect users’ funds. It will also have a simplified user interface with visualization of past performance, backtest history, and calculations such as the Sharpe ratio and Sortino ratio.
However, as of now, the current Bella Protocol product – Bella Flex Savings v2 powered by Curve.fi – is approaching $30 million in total closed value (TVL). With this new version, the platform says it can offer up to 30% annual interest return (APY) as all profits are automatically reinvested into core revenue generation protocols.