Renesys On-Chain NAV: Solving DeFi Fund Accounting

With Renesys On-Chain NAV, the company is putting an end to the fragmentation of DeFi portfolios through on-chain computation and verification of net asset value. The venture was put together by Thomas Prater with a view to making trust and fund allocation a simpler proposition for institutional investors who want to enter digital assets.

Why DeFi Fund Accounting Needs Innovation

DeFi funds present their own set of obstacles for the traditional allocator when it comes to performance verification, says Prater. One does not have to look far to see the difficulty of putting capital where one wants it; the strategies employed in decentralized finance can be convoluted, with layers of nested protocols. And there are risks in relying on spreadsheets or similar tools to keep tabs on things manually. An error here or there is enough to erode the confidence of an allocator.

How Renesys On-Chain NAV Works

Institutions have been slow to commit to digital asset funds for this reason. The absence of transparent processes and data they can trust has had the effect of tempering growth in the DeFi fund management space.

Renesys On-Chain NAV is the answer to that. It puts automated and verifiable NAV computations on the blockchain. In conjunction with Enzyme and QMC, Renesys gives allocators the means to see for themselves what the NAV of a vault on the Enzyme platform is. There is no room for the kind of human error that manual calculation invites.

Fund managers are better able to provide current and credible information because Renesys has done away with much of the legwork in accounting and daily reporting. Institutional investors are thus in a position to judge a digital asset fund with the assurance that the figures are above board.

Beyond NAV: Assessing DeFi Fund Risks

Yet as good a solution for verifying fund value as Renesys On-Chain NAV is, Prater would have you know there are other risks an allocator has to weigh: the credibility of the manager, the strategy, the legal structure of the fund. A transparent NAV is only part of due diligence. For the rest, Renesys has joined forces with Bluechip to supply a dataset that is both qualitative and quantitative, so that an investor has all the facts at hand in assessing a DeFi fund.