Indentura offers two models for pooling:
Shark Managed: Managed by “sharks” (i.e. individuals or firms), subject to predefined parameters that LPs accept, these pools tend to focus on narrowly defined strategies that utilize a specific individual or firm’s “alpha” or domain expertise. For example, an arbitrage trading strategy across perpetual futures platforms or an NFT trading or lending strategy might be best configured as a shark managed pool, because the level of narrow domain expertise, as well as we the operational burden of monitoring and execution required to administer the strategy is best concentrated in one actor operating within defined guardrails, as opposed to diffusing execution risk across multiple actors.
Community Managed: Governed by DAOs that meet Indentura’s compliance and KYC requirements, these pools are managed on a decentralized basis by community members who vote to determine pool parameters and execution. These pools tend to focus on strategies that interact with smart contract protocols, which can be devised and executed by disaggregated actors with a shared affinity for a certain network, token or platform.
Both shark managed pools and community managed pools utilize pool parameters, namely eligibility criteria and concentration limits, to provide visibility and mitigate risk for LPs. For instance, eligibility criteria may dictate that a pool may only deploy funds into specific approved venues, while portfolio concentration limits govern the maximum allocation of the pool that may be deployed into any individual approved venue.