Collateral Management Partner

Bound protocol collateral is managed through a dual-layer, fully on-chain asset-management framework designed to combine institutional expertise with decentralized community oversight.

At the first layer, our institutional asset-management partner conducts due diligence, evaluates market conditions, and proposes yield strategies that meet the protocol’s strict criteria for stability, liquidity, and risk management. Avantgarde may also construct model portfolios, define allocation weights, and outline rebalancing procedures, but these proposals cannot be executed without governance approval. All strategy integrations, allocation changes, and mandate updates require a binding on-chain community vote, ensuring that the Bound community retains complete authority over how collateral is managed. Avantgarde operates as a regulated Swiss asset manager specializing in institutional-grade DeFi strategies, providing the professional infrastructure that powers BOUND protocol.

Once governance approves a strategy or allocation plan, the second layer activates: the underlying tokenized strategies themselves. These strategies operate through non-custodial, transparent vaults where deposited assets generate ERC-20 shares representing proportional ownership of the deployed capital. The vaults’ smart-contract logic enforces strict operational boundaries, funds can only be allocated to pre-approved protocols, principal cannot be withdrawn, and managers cannot deviate from the approved mandate.

As these tokenized strategies generate yield across blue-chip stablecoin and RWA opportunities, returns accumulate directly into the vault shares, increasing the total value of DFY’s collateral base. This ensures that the backing of each DFY token grows beyond the initial $1 peg backing, producing surplus collateral that strengthens the protocol and contributes to DFY’s sustainable yield distribution system.

The entire asset-management operation is transparent, verifiable in real time, and enforced entirely by smart contracts. Every position, allocation, yield event, and rebalance can be independently audited on-chain, establishing a new paradigm for trustless institutional asset management.

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Leadership Credibility

Avantgarde is led by Mona El Isa, a former Goldman Sachs Vice President and World Economic Forum Technology Pioneer. Mona's exceptional track record includes profitable trading during the 2008 and 2011 financial crises, recognition on the "Top 30 under 30" lists in Trader Magazine (2008) and Forbes Magazine (2011).

Avantgarde combines decades of traditional finance expertise with proven blockchain innovation, ensuring DFY's collateral benefits from institutional-grade management and complete transparency.