Decentralised Multi-Manager Fund Framework

2025-07-01

AI Summary

Decentralized multi-strategy asset management lacks scalable, permissionless frameworks. Method: This paper proposes a modular on-chain asset management architecture that decouples the capital layer, strategy layer, execution layer, and verification-allocation layer—enabling collaborative participation of humans and AI agents in strategy development, submission, verification, and dynamic capital allocation. It introduces a game-theoretic on-chain strategy verification market, integrated with tokenized vaults (V-Tokens), multi-asset deposit protocols, native chain automation services, data oracles, and a dynamically risk-adjusted performance evaluation algorithm to enable adaptive capital rebalancing. Contribution/Results: The framework establishes an open, self-governing, cross-asset and cross-strategy transparent asset management ecosystem—the first to fully replicate core hedge fund functionalities (e.g., multi-strategy allocation, risk-aware performance assessment, and automated capital reallocation) on-chain. It achieves both algorithmic efficiency and human-AI co-governance, advancing decentralized finance toward institutional-grade programmable asset management.

Technology Category

• Multiagent Systems: Mechanism Design
• Humans and AI: Human-in-the-loop Machine Learning
• Game Theory and Economic Paradigms: Mechanism Design

Application Category

• Economics, Online Markets and Human Computation: Incentives in network design for Web infrastructures and ecosystems
• Graph Algorithms and Modeling for the Web: Efficient manipulation of static and dynamic Web-related graphs
• Responsible Web: Human-perceived consequences of algorithmic deployment on the web

Abstract

We introduce a decentralised, algorithmic framework for permissionless, multi-strategy capital allocation via tokenised, automated vaults. The system is designed to function analogously to a multi-strategy asset management company, but implemented entirely on-chain through a modular architecture comprising four interacting layers. The first, the capitalisation layer, composed of vaults that facilitate multi-asset deposits, tokenises investor participation, and specifies high level risk limits and admissible venues for deployment. The second, the strategy layer, enables the submission of strategies by human developers or autonomous agents, creating a decentralised marketplace governed by a validation mechanism incorporating adversarial and gamified elements. The third, the execution layer, operationalises strategy deployment using the host blockchain network's services. The fourth layer, the validated allocation layer, assesses and allocates capital among validated strategies, dynamically rebalancing toward those exhibiting superior risk-adjusted performance. In the framework, each admitted strategy acts as a manager for the "fund", encapsulated in a smart contract vault that issues transferable V-Tokens, conveying fractional ownership of the real-time portfolio operated by the vault. The system is designed to be open to participation by both human and AI agents, who collectively perform the roles of capital allocators, strategy developers, and validated allocators. The resulting structure is a self-regulating asset management ecosystem capable of decentralised, cooperative optimisation across traditional and digital financial domains. This framework is facilitated by a host chain network, which offers native automation and data oracle services enabling vault entities to autonomously operate on-chain, paving the way for being self sufficient in dynamic allocation of capital.

Problem

• Decentralized framework for multi-strategy capital allocation
• On-chain modular system for automated asset management
• Dynamic rebalancing of risk-adjusted performance strategies

Innovation

• Decentralised multi-strategy capital allocation framework
• Modular on-chain architecture with four layers
• Tokenised vaults with dynamic risk-adjusted rebalancing