Thanks for the question @DoDAO.
On the permissioning question, I answered your similar question on the LTF application - the same answer applies for DYF here.
On the yield/safety questions, to reiterate, Anemoy is not deploying investment strategies. DYF is a fund of funds, meaning the underlying asset managers are running yield farming strategies.
The underlying funds must adhere to being strictly USD market-neutral in yield farming. General examples of such strategies could be cash and carry basis trades, LP’ing into stable pairs, and supplying stables into lending markets.
Some info on risk management:
- Anemoy requires a 2+ yr successful track record before onboarding a fund to DYF
- The funds themselves must be strictly market-neutral deploying in DeFi yield strategies
- Further criteria are at least monthly NAV and redemptions with no more than 30-days for notifications
- Each individual fund must adhere to strict counterparty risk minimization by capping allocations to any given protocol or blockchain
- As the fund grows beyond launch, Anemoy will onboard more funds targeting five underlying funds