Institution-backed yields

TownSquare introduces several sources of institution-backed yield to retail

• Trading yield

Hedge funds & trading teams can curate self-deployed vaults on TownSquare based on their factor trading, delta-neutral trading, and arbitrage opportunities. Non-delta-neutral strategies involve a maximum drawdown setting that stop losses in one-sided market. A performance fee is charged by curators based on realized profit.

• Private credit yield

Cash-flow businesses are traditionally available only to private equity funds. Private credit yields supported by private credits issued by cash-flow businesses via credible onchain issuers, can be offered on TownSquare vaults deployed by the asset managers, curated by the respective asset issuer and manager.

• RWA yield

RWAs such as tokenized gold, silver, oil, and other commodities could yield via interests via banking partners or commodity trading strategies. RWA vaults are curated via specialized asset issuer and management companies in case of reserve proof and security.