Automated DeFi Yield for Professional Allocators
Dervon is a multi-strategy DeFi yield engine targeting 10-30% net annual returns across three risk tiers. Designed for financial professionals and institutions seeking exposure to decentralised money markets through a managed, transparent structure.
Professional Fund Structure
Dervon operates through a professional structure designed for qualified participants. Capital is deployed across vetted DeFi lending, liquidity provision, and yield optimisation protocols on multiple blockchain networks.
The structure uses the industry-standard "2 and 20" fee model: 2% annual management fee on assets under management, and a 20% performance fee on realised profits. This aligns incentives — the management team earns meaningfully only when participants earn.
All positions are executed via smart contracts on public blockchains, providing full real-time transparency and auditability. Monthly performance reporting and quarterly strategy reviews are provided to all participants.
Why These Yields Are Structurally Possible
DeFi protocols operate without branches, employees, or legacy IT. Operating costs are a fraction of traditional banking, leaving more yield for capital providers.
Smart contracts execute continuously without manual intervention. Compounding occurs automatically. There are no business-hours limitations or settlement delays.
DeFi protocols operate around the clock across multiple blockchain networks. Capital is always deployed, never idle during nights or weekends.
Rather than a single strategy, Dervon allocates across lending, liquidity provision, and yield farming — reducing concentration risk while capturing multiple yield sources.
DeFi borrowing demand remains high due to leveraged trading, market-making, and on-chain activity. This structural demand supports sustained lending rates above traditional money market levels.
Three Risk Tiers
Each tier targets a different risk-return profile, allowing participants to allocate according to their mandate and risk appetite:
10-15% net
~14-19% gross
Primarily stable lending protocols (Aave, Compound, Morpho). Capital preservation focus. Lower volatility. Suitable for allocations requiring steady, predictable yield.
15-20% net
~21-27% gross
Mixed lending and concentrated liquidity provision. Optimised risk-return across multiple protocols. The core allocation for most participants.
25-30% net
~34-40% gross
Higher-yield protocols, active rebalancing, yield farming. Maximum return potential. Suitable for allocations with higher risk tolerance and longer time horizons.
Fee Structure
Industry-standard "2 and 20" applied consistently across all tiers:
- 2% annual management fee on AUM
- 20% performance fee on realised profits (high-water mark applies)
- No hidden fees, no entry/exit loads, no lock-up premiums
- Net returns to participants: 80% of all generated profits after management fee
Comparison with Traditional Asset Classes
| Asset Class | Typical Gross | Typical Net | Liquidity | Transparency |
|---|---|---|---|---|
| Bank Deposits | 0.5-1% | 0.5-1% | Daily | Limited |
| Government Bonds | 2-4% | 2-4% | Daily | High |
| Corporate Bonds | 4-6% | 3-5% | Daily | Medium |
| Private Equity | 15-25% | 10-18% | Years | Low |
| Hedge Funds | 12-20% | 8-15% | Quarterly | Medium |
| Dervon Conservative | 14-19% | 10-15% | Quarterly* | Full (on-chain) |
| Dervon Balanced | 21-27% | 15-20% | Quarterly* | Full (on-chain) |
| Dervon Aggressive | 34-40% | 25-30% | Quarterly* | Full (on-chain) |
* Quarterly redemption windows after minimum commitment period. All target returns are forward-looking estimates based on historical protocol yields, not guaranteed outcomes.
Risk Management Framework
- Protocol diversification across multiple chains and DeFi platforms
- Continuous 24/7 automated monitoring with configurable alert thresholds
- Automatic position rebalancing in response to market conditions
- Smart contract risk mitigation through protocol vetting and diversification
- Stablecoin exposure management — monitoring de-peg risk across USDC, USDT, DAI
- Professional active oversight by experienced DeFi operations team
- Regular third-party security assessments of deployed strategies
Participation Options
- Personal or entity participation with own capital
- Access to all three risk tiers or custom blend
- Minimum commitment period, then quarterly liquidity
- Full on-chain transparency and monthly reporting
- Allocation for qualified clients, family offices, or mandates
- Scalable capacity for larger volumes
- Custom reporting and compliance documentation
- White-label options for distribution partners
Questions from Financial Professionals
What is the fund structure?
Dervon operates through a professional structure with industry-standard 2/20 fees. The structure is designed for qualified participants and supports both individual and institutional allocations. Minimum commitment period applies, with quarterly redemption windows thereafter.
Is this cryptocurrency exposure?
No. Participants do not hold volatile cryptocurrencies. Capital is denominated in stablecoins (USDC, USDT) and deployed into DeFi yield strategies. The exposure is to lending rates and liquidity provision fees, not to crypto price movements. Think of it as money-market exposure via digital infrastructure.
How are risks managed?
Through multichannel diversification across protocols and chains, continuous automated monitoring, automatic rebalancing, and professional active management. All positions are on-chain and auditable in real-time. Smart contract risk is mitigated through protocol vetting, diversification, and position sizing. However, as with any investment, risk of loss exists.
What is the current status of Dervon?
Dervon is in active development. Strategies are being built and tested against live protocol data. We do not claim audited track records. Target return ranges are based on demonstrated protocol yields, not Dervon-specific historical performance. We will provide verifiable data once live deployment begins.
How does the fee structure compare to peers?
The 2/20 model is standard across hedge funds and alternative investments. Unlike many traditional funds, Dervon has no hidden costs, no entry/exit loads, and full fee transparency. High-water mark ensures performance fees are only charged on new profits above previous peaks.
Why expand to new participants?
Larger AUM enables better diversification, access to higher-tier protocol allocations, and improved operational efficiency. We are selectively expanding to qualified financial professionals and institutions who understand DeFi yield mechanics and can evaluate the opportunity on its merits.
Next Steps
We welcome conversations with qualified financial professionals and institutions:
- Confidential introductory meeting with detailed strategy presentation
- Technical due diligence materials and risk documentation
- Live demonstration of on-chain transparency and monitoring systems
- Custom structuring discussion for institutional mandates
This page is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell securities or digital assets. Dervon and CryptaCore make no guarantees regarding specific returns or outcomes. All investments carry risks, including the possible loss of capital. Target returns are forward-looking estimates based on historical protocol performance and are not guaranteed. Past performance of underlying protocols is not indicative of future results. This material is intended for qualified financial professionals and institutions. Consult qualified legal and financial advisors before making investment decisions.
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