Decentralized Asset Management Protocol Unveiled on Arbitrum and Optimism

Valio, a decentralized asset management platform, has made its public debut, offering users the ability to have their funds managed by professional traders without the need to trust them as custodians. The platform’s team announced the public launch, which is currently available on the Arbitrum and Optimism networks. Previously, Valio had a whitelisted version released on July 24, but the new public version removes the need for pre-approval of managers.

Valio founder, Karlis, explained that investors can explore lists of money managers and view their statistics on an “explore” page. If an investor decides to back a specific money manager, they can deposit assets to participate in that manager’s fund. All assets are held in smart contracts, and money managers cannot withdraw them. Additionally, managers can only invest in DeFi applications from a predetermined list. The launch of Valio has integrated it with GMX, a perpetuals trading platform on Arbitrum, and 0x, a decentralized exchange protocol on Optimism.

The platform incorporates a “cumulative price impact tolerance architecture” to limit the price impact that money managers can cause on individual investments. This is aimed at preventing managers from draining funds by investing in illiquid assets while betting against their own clients. Karlis claims that even if an unscrupulous money manager attempts to do so, they can only take away 3%-5% of the total funds, which would be less than what they could earn through honest practices and collecting fees.

Karlis asserts that anyone can be a money manager on Valio, regardless of their background or geographic location. The platform aims to level the playing field by allowing managers to deploy vaults easily and track their returns transparently. Investors can back managers based on performance rather than traditional credentials.

To make the platform accessible to users who are not familiar with Web3 technologies, Valio offers the option to use a seedless smart contract wallet, enabling login with familiar social login tools. Safes, formerly known as “Gnosis Safes,” underpin this feature, leveraging account abstraction technology.

Karlis envisions platforms like Valio as the future of asset management, appealing to the “Wall Street Bets” crowd interested in real success. As DeFi apps and crypto wallets aim to become more user-friendly, Valio strives to streamline the process by utilizing new wallet technologies. Other examples include Synquote and Beam wallet, all geared towards making DeFi more accessible and inclusive.

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