Indentura is a liquidity aggregation and servicing platform that enables liquidity providers (”whales”) to pool and deploy capital into sub-institutional market opportunities while providing visibility into how funds are deployed and mitigating the risk of being “rugged”.
Most liquidity aggregation or vaulting solutions in crypto today are at the extreme ends of the risk-return spectrum: high risk / high return or low risk / low return. As such, liquidity providers are left choosing among pooling solutions that either leave risk management ambiguous or offer unattractive, if straightforward, risk-adjusted returns.
Indentura solves this problem by clearly defining risk mitigation criteria for pools and transparently layering higher risk strategies with lower risk ones. Indentura also provides access to niche, “sub-institutional” strategies by providing lending services to “sharks” who have domain expertise in generating yields from narrowly defined strategies such as token market making, lending, and liquidation arbitrage. Indentura pools are intended to allow sharks and whales to pool capital into crypto strategies that present attractive risk-adjusted return opportunities compared to tradfi without compromising tradfi methods of risk mitigation and reporting.
Indentura is powered by Thaw Digital, a U.S. based financial technology company.
The vision for Indentura is to be the one-stop shop for whales (i.e.high net worth individuals or funds) and sharks to coordinate capital deployment within and across blockchain networks. The platform will make this possible by providing the following feautres:
The long-term vision for Indentura is for any of the possible stakeholders to be able to select the features and functionality they need to create, manage, and execute pooling strategies to drive overall liquidity growth for crypto markets, blockchain networks, and protocols without the need for unnecessary financial intermediation.