When Vault Managers Only Profit When You Do đ
Lots of trading platforms say they want their users to make money, but you should pay more attention to how their incentives are actually structured.
Took a look at Pear Protocol's new Vault model on $HYPE , and I'm bullish.
Specialist managers can run strategies across assets like $ONDO and charge a performance fee, but they don't automatically earn that fee every time the Vault makes money.
It operates on a high-water mark. So if a Vault reaches a new peak and then loses money, the manager can't collect another performance fee just because the strategy starts recovering.
Your losses have to be made back first.
Only profits above the Vault's previous peak can generate another performance fee.
So the economics create a pretty simple alignment: new profits for depositors are what unlock new performance-fee revenue.
Trader profitability has always been Pear's north star. I like seeing that reflected in how the product actually works.
Bullish on vaults at vaults.pear.garden
#Altcoin Season#
Lots of trading platforms say they want their users to make money, but you should pay more attention to how their incentives are actually structured.
Took a look at Pear Protocol's new Vault model on $HYPE , and I'm bullish.
Specialist managers can run strategies across assets like $ONDO and charge a performance fee, but they don't automatically earn that fee every time the Vault makes money.
It operates on a high-water mark. So if a Vault reaches a new peak and then loses money, the manager can't collect another performance fee just because the strategy starts recovering.
Your losses have to be made back first.
Only profits above the Vault's previous peak can generate another performance fee.
So the economics create a pretty simple alignment: new profits for depositors are what unlock new performance-fee revenue.
Trader profitability has always been Pear's north star. I like seeing that reflected in how the product actually works.
Bullish on vaults at vaults.pear.garden
#Altcoin Season#
